P2P Platforms Seek ‘Urgent’ UK Government Help to Keep Lending

Two of the UK’s largest peer-to-peer platforms are “urgently” seeking access to government schemes and financing to help them keep lending, as the coronavirus pandemic increases the risk of loan defaults by individuals and small businesses, the Financial Times reported. RateSetter, one of the UK’s biggest P2P lenders with more than £800m on its loan book, has called on the Bank of England and the Treasury to allow it access to stimulus schemes that provide liquidity to banks. “There are established schemes run by the BoE that pump liquidity into the system in the event of these situations,” said Rhydian Lewis, chief executive of RateSetter. “Now that P2P lending is fully regulated, this is a conversation we need to have.” The P2P industry body, 36H Group, is due to discuss potential action on a conference call on Tuesday. P2P platforms have not traditionally qualified for banking protections but Mr Lewis argued that now that the fledgling sector was fully regulated by the government, it should be supported by it. Read more