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". ...

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