Innovate Finance in talks for P2P lenders to receive cheap BoE funding

Peer2Peer Finance UK | | Jun 3, 2020

BoE - Innovate Finance in talks for P2P lenders to receive cheap BoE fundingInnovate Finance is representing peer-to-peer platforms in talks about non-bank lenders receiving access to cheap funding from the Bank of England, Peer2Peer Finance News can reveal.

The industry body has argued that without access to the Bank of England’s Term Funding Scheme – which is currently only available to banks – many non-bank lenders have been prevented from delivering the government’s emergency loan schemes.

“We’ve made the case to the government that it’s difficult for P2P lenders to provide emergency loan schemes because they don’t have the same access to cheap funding,” said Iana Vidal, head of policy and government affairs at Innovate Finance.

“I think P2P has a huge role to play in delivering the emergency loan schemes and we’ve been trying to get that across to the government.

See:  European fintech lending industry to hit USD 9.6 billion in 2020

“Part of the purpose of the schemes is to get finance out quickly to SMEs and that’s where fintech and P2P comes into play.

“We think (fintechs) are integral to the conversation and have been saying for a number of weeks that there are some really innovative companies and we should be utilising their technology to support the wider measures out there providing finance to businesses and consumers during this time.

“And we’re fully aware that these interventions from schemes cause customers that usually would have been spread out across many lenders to just use a few institutions. We’re aware of that impact from a P2P viewpoint and generally and are monitoring it.”

P2P lending platforms have welcomed news of the talks.

“It would be brilliant,” said David Bradley-Ward, chief executive of Ablrate.

“Getting access to the cheap funding like banks and levelling the playing field with them would be great. I’ve always been an advocate of alternative finance lenders being on the same level as banks. If anything, banks’ technology is terrible.

See:  Shopify expands capital lending program to help Canadian merchants weather COVID-19

“I’d be up for something like this, but the ultimate issue is suddenly giving P2P lending platforms quick access to finance wholesale would remove the need for retail investors and it wouldn’t be P2P anymore.”

Daniel Rajkumar, managing director of Rebuildingsociety, said that having access to this type of funding would help to fight unfair competition in the marketplace, which at present, is his platform’s largest threat.

“It’s difficult to compete without being able to get access to the credit in the same way banks can get access to capital,” he said.

“It’s really important to get access to Bank of England funding options to remediate unfair competition.”

Continue to the full article --> here

 


NCFA Jan 2018 resize - Innovate Finance in talks for P2P lenders to receive cheap BoE funding The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Innovate Finance in talks for P2P lenders to receive cheap BoE fundingFF Logo 400 v3 - Innovate Finance in talks for P2P lenders to receive cheap BoE fundingcommunity social impact - Innovate Finance in talks for P2P lenders to receive cheap BoE funding

CONGRATULATIONS TO THE 2020 FINTECH DRAFT PITCHING AND DEMO COMPANY WINNERS!



FFCON20 Pitching and Demo Winners - Innovate Finance in talks for P2P lenders to receive cheap BoE funding



NCFA COVID 19 letter to government to support Fintechs and SMEs - Innovate Finance in talks for P2P lenders to receive cheap BoE funding

NCFA Newsletter subscribe600 - Innovate Finance in talks for P2P lenders to receive cheap BoE funding