The Peer-to-Peer Finance
Association:
A 3 minute guide
The P2PFA is the
UK industry body
for peer-to-peer
finance.
Hang on, what’s
Peer-to-Peer
finance?
“

Peer-to-peer finance
platforms facilitate
funding via direct
contracts between
lenders and borrowers

”
This revolutionary concept
uses the power of the internet
to cut out unnecessary
intermediaries and banks
Businesses or consumers
want to borrow money at a
reasonable interest rate
Businesses
or
consumers
Investors and savers want to
get a good return on their
money
Investors
The platform connects the two

£!
Investors

P2P
platform

£!
Businesses
or
consumers
and then enables repayment

£!
Investors

P2P
platform

£!
Businesses
or
consumers
Peer-to-Peer platforms have
experienced extraordinary
growth since the concept
emerged in 2005
Millions

Cumulative gross lending data
for P2PFA members
£1,000
£900
£800
£700
£600
£500
£400
£300
£200
£100
£0

2010

20...
In 2013 these companies grew by

Read more stats on the P2PFA website >>>
The Peer-to-Peer Finance
Association was set up to
ensure high standards in
this fast-growing industry
It was founded in August 2011
There are now 8 members
So what’s
involved in being
a member?
All members of the
P2PFA must adhere to
the rules and operating
principles drawn up by
the association
Rule #1
All members have to
maintain a minimum amount
of funds to maintain stability
Rule #2
Members have to keep their
clients’ funds separate to
their own
Rule #3
Members have to
lend responsibly and
manage credit risk
Rule #4
Transparency
Tran
s

pare
n

Members have to
communicate to their clients:
• 
• 
• 
• 

Likely default rates
Terms of the product
Risks...
“

Tran
s

pare
n

Each member must
ensure that clear, fair
and not misleading
information is published
on their website

...
Rule #5
Members have to make sure
their IT systems are secure
and reliable
Rule #6
Members must have a clear
complaints handling policy
“

Rule #7
Each member must make
arrangements to ensure the
orderly administration of its
customers’ contracts in the
even...
Christine Farnish is
the independent
Chair of the P2PFA,
having previously
worked as
Consumer Director
at the FSA
2014 is a big year for the
P2PFA, with the FCA bringing in
regulation for P2P finance and
crowdfunding from April 1st

Rea...
As the association’s newest
member, MarketInvoice is proud
to adhere to the P2PFA’s rules
and shares its commitment to
tra...
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A 3 minute guide to The Peer-to-Peer Finance Association

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The Peer-to-Peer Finance Association is the UK industry body for P2P finance providers and platforms. Here's a short guide to their purpose and history.

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A 3 minute guide to The Peer-to-Peer Finance Association

  1. 1. The Peer-to-Peer Finance Association: A 3 minute guide
  2. 2. The P2PFA is the UK industry body for peer-to-peer finance.
  3. 3. Hang on, what’s Peer-to-Peer finance?
  4. 4. “ Peer-to-peer finance platforms facilitate funding via direct contracts between lenders and borrowers ”
  5. 5. This revolutionary concept uses the power of the internet to cut out unnecessary intermediaries and banks
  6. 6. Businesses or consumers want to borrow money at a reasonable interest rate Businesses or consumers
  7. 7. Investors and savers want to get a good return on their money Investors
  8. 8. The platform connects the two £! Investors P2P platform £! Businesses or consumers
  9. 9. and then enables repayment £! Investors P2P platform £! Businesses or consumers
  10. 10. Peer-to-Peer platforms have experienced extraordinary growth since the concept emerged in 2005
  11. 11. Millions Cumulative gross lending data for P2PFA members £1,000 £900 £800 £700 £600 £500 £400 £300 £200 £100 £0 2010 2011 2012 2013
  12. 12. In 2013 these companies grew by Read more stats on the P2PFA website >>>
  13. 13. The Peer-to-Peer Finance Association was set up to ensure high standards in this fast-growing industry
  14. 14. It was founded in August 2011
  15. 15. There are now 8 members
  16. 16. So what’s involved in being a member?
  17. 17. All members of the P2PFA must adhere to the rules and operating principles drawn up by the association
  18. 18. Rule #1 All members have to maintain a minimum amount of funds to maintain stability
  19. 19. Rule #2 Members have to keep their clients’ funds separate to their own
  20. 20. Rule #3 Members have to lend responsibly and manage credit risk
  21. 21. Rule #4 Transparency
  22. 22. Tran s pare n Members have to communicate to their clients: •  •  •  •  Likely default rates Terms of the product Risks and likely returns Fees and charges cy
  23. 23. “ Tran s pare n Each member must ensure that clear, fair and not misleading information is published on their website cy
  24. 24. Rule #5 Members have to make sure their IT systems are secure and reliable
  25. 25. Rule #6 Members must have a clear complaints handling policy
  26. 26. “ Rule #7 Each member must make arrangements to ensure the orderly administration of its customers’ contracts in the event that their platform ceases to operate
  27. 27. Christine Farnish is the independent Chair of the P2PFA, having previously worked as Consumer Director at the FSA
  28. 28. 2014 is a big year for the P2PFA, with the FCA bringing in regulation for P2P finance and crowdfunding from April 1st Read more on the P2PFA website >>>
  29. 29. As the association’s newest member, MarketInvoice is proud to adhere to the P2PFA’s rules and shares its commitment to transparency and innovation Read more on the MarketInvoice website

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