www.altfi.com reports today that February 2015 was another record month for the UK P2P platforms.
The big story in the UK Liberum AltFi Volume Index for February was the obliteration of the previous industry monthly volume record by 21% (GBP 35m). Over GBP 200m was originated by UK platforms in a single month for the first time ever. The previous record was only set in January, meaning that we have now witnessed four consecutive record origination volume months – the industry continues to grow at a phenomenal pace.
At the end of 2014, based on the growth trajectory at the time, AltFi Data predicted industry growth of 85%. With GBP 372m originated in the first 2 months of 2015, growth continues to accelerate and at the current run rate, the industry is on track to double its 2014 lending in 2015.
The strong industry performance was made up of several impressive individual platform performances. 6 platforms had a record month of their own, including Funding Circle (£38.4m), SavingStream (£5.3m), Folk2Folk (£6.7m), LendInvest (£39.5m), Landbay (£1.3m) and Crowdcube (£9.5m).
LendInvest’s performance was particularly impressive, originating the most within the industry over the month. The platform also eclipsed its previous best origination month, set in July last year, by almost 50%. The timing is particularly good for LendInvest, with the platform announcing its intention to IPO earlier in the month. Perhaps the spike in transactional flows has been spurred on by the decision of the platform to lower its minimum investment amount, effectively opening it up to a wider pool of investors.
Second and third place in terms of origination volume was hotly contested, with Funding Circle and RateSetter both lending just over £38m and RateSetter just squeezing into second place by less than £150k.
Europe’s leading P2P platform TrustBuddy is in the middle of setting up shop in UK and therefore not included in the index yet. Nevertheless, the year has started equally pleasant for TrustBuddy with Geldvoorelkaar, its recent P2P SME business, surpassing the EUR 53m mark in capital lent.