REGULATORY consultancy Bovill has reported a steady stream of interest from new entrants to the peer-to-peer lending market, particularly from overseas firms.
Frank Brown, managing consultant at Bovill, told Peer2Peer Finance News that while there had been an undeniable slowdown from previous years, he was still “definitely” seeing interest from new P2P firms seeking regulatory authorisation.
Brown attributed the slowdown to the fact that P2P is a more mature market, meaning there was “less of a gold rush” for new players.
“There is definitely still interest in the sector, in particular from foreign firms,” he said.
“I think they’re recognising the fact that while there are questions around Brexit, the UK is still a good market with a strong regulatory framework to operate in.”
Brown said it should not come as a surprise that P2P remains an attractive sector, but noted that it is “incredibly important” for any new entrants to ascertain what their niche would be in order to gain a foothold in the market.
“I think the market is fluid in terms of investors’ options and I think it still remains unsaturated in terms of the number of investors,” he said.
“I don’t think P2P is on every investor’s radar yet.”
This article featured in the September issue of Peer2Peer Finance News, now available to read online.