RateSetter marketplace passes £1bn in record time
RateSetter has helped investors to lend over £1bn to individuals and businesses across the UK, reaching the milestone in just 1,933 days – record time for a UK marketplace lending platform. This makes us the largest online retail money market in the world.
A growing base of over 30,000 customers now lend money through RateSetter. The vast majority – representing over 90% of the amount lent – are individuals who invest alongside businesses, schools, charities, investment funds and even a bank in the form of the Government-backed British Business Bank.
Michael Del Mar was among RateSetter’s first investors in October 2010: “I wasn’t investing for anything in particular, just looking for a better rate. Over the five years I’ve been investing, rates on the platform have been significantly higher than any other investments, and I consider that the product comes with a manageable level of risk. For me, RateSetter has done precisely what it has set out to do.”
We now originate, underwrite and service loans to a diverse mix of individuals and businesses across the country. The number of active borrowers stands at over 185,000, a figure exceeding that of any other UK platform, partly thanks to partnerships with companies like giffgaff (part of O2) and the travel card company, Commuter Club.
Founder and CEO, Rhydian Lewis, commented: “From the start our objective has been to disrupt the way people view interest rates in this country. We have started a quiet revolution – a step change in transparency on a fundamental price point in people’s everyday lives – with interest rates set by the crowd, not by the banks. This is delivering real value: for example, compare our average one year interest rate of 3.8% to the average for a one year cash ISA at 1.17%. Capital is at risk, but with that risk comes substantially better returns.”
Over £500m was lent in 2015 and industry commentators predict an increase to £750m this year.
Thanks to you – our investors and borrowers – for helping us to pass this huge milestone.