He subsequently moderated his warning, acknowledging that peer-to-peer lending was "likely to become a stable, significant and useful part of our total credit supply system". However, some prominent City figures, including Lord Turner, the former FCA chairman, have previously raised concerns about the industry's lending standards.
#FUNDING CIRCLE FULL#
Peer-to-peer lending has come under growing scrutiny as the asset class has expanded, with rivals including Ratesetter recently following Funding Circle by gaining full authorisation from the Financial Conduct Authority. The company has struck partnerships with Royal Bank of Scotland and Santander UK. They identified opportunities offered by new technology to provide access to finance for businesses frozen out by mainstream banks, while also promising superior returns to investors.
![funding circle funding circle](https://colemanreport.com/wp-content/uploads/2019/03/Funding-Circle.jpg)
Temasek Holdings, the Singaporean state-owned vehicle, is also an investor.įunding Circle was set up by executives including Samir Desai, who remains its chief executive. The company's rapid growth has earned it the status of one of the UK's few fintech "unicorns" - companies which have achieved a prized $1bn price-tag.įunding Circle's big shareholders include funds such as Baillie Gifford, the Edinburgh-based manager, DST Global, Index Ventures and Rocket Internet. In 2021, lending through Funding Circle’s UK platform “is estimated to have contributed £7.2bn to GDP and supported 100,000 jobs.Its pitch to borrowers is that it offers rapid and flexible financing, truncating the traditional process on which they would have depended from mainstream banks. This is providing small businesses “with the fast and simple access finance they need to grow and power the economy.” £14 billion to approximately 120,000 businesses globally.” These public capital market transactions “are further recognition of the platform’s ability to open up deep and diverse pools of capital to small businesses, creating more choice and competition in the small business lending market.”Īs covered, Funding Circle claims to be the UK’s largest loan platform for SMEs.įounded in 2010, its instant decision lending technology “enables small businesses to apply for finance in an average of six minutes, with lending decisions in as little as nine seconds.”Ī wide range of investors are “utilizing this technology and distribution platform to lend c. Waterfall’s initial £1bn investment in 2018 “included multiple securitizations.”
![funding circle funding circle](https://www.uktech.news/wp-content/uploads/2015/04/Funding-CIrcle-898x505.jpg)
![funding circle funding circle](https://i.pinimg.com/originals/f1/fe/39/f1fe39fb0cfe8449e409761c6d0a4452.png)
We have been impressed by Funding Circle’s resilience throughout the Covid crisis and believe Funding Circle’s platform and technology will be effective in enabling investors to access this asset class and supporting borrowers in the post-pandemic recovery.”
![funding circle funding circle](https://www.zakelijker.nl/wp-content/uploads/2019/06/Funding-Circle-300x300.png)
“We are pleased to continue our partnership with Funding Circle and to support SME lending in the UK. Henrik Malmer, Managing Director at Waterfall, said: It’s great to see a wide range of investors leveraging Funding Circle’s machine learning and technology capabilities to lend to SMEs at both speed and scale.” “We are proud of our four-year partnership with Waterfall which will continue to provide tens of thousands of small businesses with the finance they need to drive the post-pandemic recovery. Waterfall will “lend through the platform alongside a wide range of investors, including banks, asset management companies, insurance companies, government-backed entities, individuals and funds.” More than a decade of investment and innovation in Funding Circle’s technology and data capabilities has “created powerful machine learning models.” These provide Waterfall with “a highly efficient and cost-effective mechanism to deploy capital to the real economy.”įunding Circle’s instant decision capabilities “enable small businesses to apply for finance in an average of six minutes, with lending decisions in as little as nine seconds.” This functionality “is helping provide small businesses with fast and simple access to finance, allowing them to grow and power the economy.”