A million UK investors exposed to P2P and crowdfunding

Money flooding into sector up 84%

Laura Miller
clock • 3 min read

More than one million people in the UK invested, donated or lent using peer-to-peer (P2P) lending or crowdfunding platforms last year, according to estimates by a study into the market.

The UK Alternative Finance sector now involves £3.2bn worth of loans, investments and donations a year, up 84% compared to 2014, the research by innovation charity Nesta, Cambridge University and KPMG found. Investing in the alternative finance market through P2P loans or equity crowdfunding has become an attractive prospect for investors faced with dismally low interest rates on savings from the main high-street banks. Supporters have praised it as a democratisation of finance, saying it offers a better deal than "hidden fees and charges from the investments and pensions industry". ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

London pushed out of top five wealthiest cities as millionaires exit

London pushed out of top five wealthiest cities as millionaires exit

Comes as Labour cracks down on non-doms

Sahar Nazir
clock 09 April 2025 • 1 min read
BoE governor assures chancellor that UK markets 'are functioning effectively'

BoE governor assures chancellor that UK markets 'are functioning effectively'

Banking system 'resilient'

Linus Uhlig
clock 09 April 2025 • 2 min read
Gilt yields increase as part of sell-off of government debt

Gilt yields increase as part of sell-off of government debt

Investor unloading of US Treasuries drags government borrowing costs higher globally

Jonathan Stapleton
clock 09 April 2025 • 1 min read