Innovate Finance/36H Group P2P sector rankings 2021

Innovate Finance/36H Group today is publishing the table of Top 10 platforms in the P2P sector for 2021. There has been much change in the industry in recent years and the pandemic was a stern test for all platforms. However, our data shows that P2P platforms have emerged from Covid stronger than pre-crisis.

The highlights are:

• Assetz Capital is now the #1 platform in the P2P sector, followed by Folk2Folk and CrowdProperty
• Sector loan volumes fell c.40% in 2020 vs 2019 as the impact of the pandemic took hold, but more than doubled in 2021 vs 2020 (up c.120%). 
• Overall, the sector in 2021 was c.40% up on the pre-pandemic 2019 loan volumes. 
• The standout performer as the sector emerges from Covid is CrowdProperty, whose loan volumes in 2021 were c.150% up vs 2019 volumes and was one of the few platforms to grow loan volumes in both 2020 and 2021
• The sector mostly lends to SMEs and smaller property developers and is a crucial constituent of the larger SME Alternative Lending sector

The top 3 platforms are each based outside London (Manchester, Cornwall, Birmingham respectively) and they all lend to SMEs and smaller property developers throughout the UK. The strength, resilience and versatility of the sector is illustrated by how the top 3 platforms dealt with the challenges of the pandemic. 

• Assetz Capital obtained accreditation from the British Business Bank to use the CBILS guarantee, and provided significant volumes of these loans to help their borrowers through the crisis, with 2021 finishing up c.35% on 2019 volumes
• FOLK2FOLK provided a business-as-usual service to both borrowers and investors during the Covid crisis with no pause in activity, no change to interest rate or fees, and a liquid secondary market for investors.  The company saw year on year loan book growth and achieved impressive levels of profitability positioning it as a stable platform for its customers. The number of completed loans for FOLK2FOLK in 2021 was 62% higher than 2019. The company was accredited by the British Business Bank to deliver CBILS and received a multi-million pound investment commitment from British Business Investments.
• CrowdProperty continued supporting Property developers throughout the crisis (albeit under tighter criteria), and diversified their funding with a new institutional facility signed in July 2021. Loan volumes in 2021 were an impressive 150% higher than in 2019

Commenting on the new rankings:

Mike Carter, Head of Platform Lending and 36H Group at Innovate Finance:

“The fall in volume in 2020 was unsurprising given that most lenders paused or slowed lending in Q2 2020 while the potential economic impact of the pandemic was being assessed. However, our data also shows the sector re-started lending in the second half of 2020 and bounced back strongly in 2021. The 2021 performance shows that P2P platforms are stronger now than pre-pandemic. The sector continues to be a meaningful participant in SME and Property Development lending and is capable of contributing significantly to the levelling up agenda to help finance reach underserved segments of the market.”

Stuart Law, Founder and CEO of Assetz Capital, the #1 ranked platform:

“Whilst it is great to see the results of our team’s hard work over the last nine years, being the largest lending platform with P2P funding is only part of the story. We fund at least 1 in 12 of all new homes built by SME housebuilders, and intend to grow this still further. Our funding also supports substantial job creation in the SME community and the development and ownership of care facilities and as a result we are having a greater and greater positive impact on the economy and wider society as each year passes.“

Roy Warren, Managing Director of Folk2Folk, the #2 ranked, and consistently profitable, platform:

“The P2P sector has a tremendous amount of value to offer businesses and investors. We view the ‘shrinkage’ of the sector as a positive. For us it’s not just about size, attitude counts for a lot, but given that we’re in a market that is consolidating - size does matter. Remaining small will not attract buyers or investors, every business wants a growth story.“

Mike Bristow Co-Founder and CEO of CrowdProperty, the #3 ranked platform and fastest growing player:

“Our business model of diverse sources of capital providing specialist development finance for SME property developers proved perfectly reliable through the pandemic when many traditional sources of finance that had single wholesale funding sources paused. Our highly scalable technology and deep asset-class expertise delivers the disruptive speed, ease, certainty, transparency and expertise of finance that developers crave to help them succeed, unlocking their potential to build much needed, under-supplied homes, drive spend in the UK economy and grow their businesses quicker and more profitably. Furthermore, in May 2021 we launched the full business model in Australia, proving our international scalability.“

For more information please contact Innovate Finance

Notes:

1. The table comprises P2P platforms that are open to Retail customers or that have not announced a cessation of Retail investment. Platforms that have announced an exit from P2P are excluded
2. Loan volume data has been sourced from public sources, private sources and Innovate Finance estimates. 
3. The data is as at 31 December 2021 or as near to that date as possible
4. Lending is aggregated Retail P2P loans plus in some cases institutional-funded loans that the platform has written