Today, we take a look across the Atlantic at our American cousins. Money&Co. has close links with the staff of the University of Cambridge’s Centre for Alternative Finance, part of the university’s Judge Business School. The Centre has just published its latest research report on the state of alternative finance in the Americas, approximately one year on from its first report. Our friends at AltFi report that “the research has been compiled in collaboration with Chicago Booth’s Polsky Centre for Entrepreneurship and Innovation, CME Group and The Inter-American Development Bank.
“The report covers all forms of alternative finance, from marketplace lending to rewards-based crowdfunding.
“Key findings include an industry-wide “market volume” figure for 2016 of $34.5bn, up 22 per cent from the previous year. The growth comes despite the tribulations of the consumer-focused marketplace lending sector in the US, which continues to account for the majority ($21bn) of the overall market’s yearly output.”
That last note reminds us that it’s worth pointing out the pitfalls as well as the potential profits to be had from peer-to-peer lending, the P2P loans facilitated by Money&Co. This blog by our head of communications and content ran as a column in CityA.M., and pretty much pointed out the dangers of his valuations – which arguably contributed to the pressure that quoted US P2P players fund themselves under.
P2P Loan Performance & Pipeline Update
Money&Co lenders have achieved returns of almost 9 per cent – before deduction of our one per cent fee – in the three years and nearly £10 million of loans facilitated on our platform. We currently have two fast-filling P2P loan offers on site – both fixed at 8 per cent yield. Webuyanyhome is A+ and property-backed. Mar-Key is A-rated. Further detail is available to registered Money&Co. users. Money&Co. loans can be held, tax-free, in an Innovative Finance Individual Savings Account, or Innovative Finance ISA.
If you haven’t made a loan via Money&Co. before, please read the risk warnings and the FAQ section. You may also wish to consult a financial adviser before making an investment.