The Association has established a wide definition of peer-to-peer finance providers as “platforms that facilitate funding via direct, one-to-one contracts between a single recipient and multiple providers of funds, where the majority of providers and borrowers are consumers or small businesses. Generally, funding is in the form of a simple loan, but other instruments may evolve over time”.
According to the newly-formed association, in 2011 peer-to-peer finance is expected to account for more than GBP 100 million worth of loans extended to individuals and small businesses.
As new financial regulatory structures are put in place by the British Government over the next 18 months or more, the Peer-to-Peer Finance Association will work to ensure that the new rules include effective regulation for the peer-to-peer finance market.
Funding Circle, RateSetter and Zopa are the largest peer-to-peer finance platforms at present in the UK. Other peer-to-peer providers are known to be interested in seeking membership in the near future, subject to meeting the required standards.
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