Peer-to-peer lender RateSetter has reached $200m in loans matched to investors with the firm managing to double its volumes in just over six months.
This rapid growth has been attributed to poor returns on retail investments and greater scrutiny on the banks – all of which has led to a great year for RateSetter, said CEO Daniel Foggo.
“The peer-to-peer lending industry is reaping the benefits of Australians’ frustrations with the banks, with record numbers of investors and borrowers seeking out the better value alternative we offer.”
In research conducted earlier this year, RateSetter found that 56% of its investors withdrew money from a bank savings account, 17% moved money from a bank term deposit, and 17% sold their shares to invest.
RateSetter’s investors are predominantly between 18 and 36 years old at 58% of the total investor base. This age bracket invests an average of $9,400.
Investors in older age brackets are more likely to put down larger amounts however. Those between 55 and 64 invest an average of $66,100 while those greater than 65 years old invest $64,400.
This year, as well as reaching the $200m milestone, RateSetter also launched its green loan marketplace – the first in Australia – supported by a $20m commitment from the Clean Energy Finance Council.
The firm also partnered with digital real estate agent Purplebricks, telecommunications firm Amaysim, and auto finance broker Stratton.
Foggo reflected on the company’s history saying that in June 2015, RateSetter was excited to fund $1m of loans in one month.
“In October, we loaned that same amount in one day. This growth exceeded even our own estimates. Peer-to-peer is booming in Australia because we are providing a genuinely attractive alternative to both investors and borrowers.”
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