FOR YEARS now, analysts have been predicting that a wave of consolidation is just around the corner for the UK's peer-to-peer lending market. Yet another year has just passed without any significant mergers or acquisitions taking place.However, a different type of consolidation is beginning to emerge. One where banks and alternative lenders develop strategic partnerships on specific projects, while remaining independent (and even competitive) in other areas of their business.Over the past 12 months, a number of innovative new partnerships and deals have brought together the traditional world of banking and the modern features of P2P lending.In August 2018, high street behemoth Barclays took a minority stake in business finance provider MarketInvoice. Under the terms of the deal, Barclays will offer MarketInvoice's invoice finance products to its business clients and will also fund £1bn worth of invoices via the platform.Meanwhile, asset-backed lender Ablrate took an equity stake in fellow P2P lender Huddle last year, in a strategic partnership that will see the two platforms share their investor bases. At the time, Huddle described the partnership as "complementary, not conflicting", since the two firms targeted different types of loans.These partnerships suggest that alternative lenders are finding new ways to collaborate without giving up the 'alternative' label that has made them so attractive to retail borrowers and lenders in the first place.And this is only the beginning of this new kind of consolidation. Within the P2P property sector, there have been some discussions on how various platforms can work together to centralise their offerings and increase liquidity, while maintaining their independence.
A Process Guide To Innovative Finance ISA InvestmentAll loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.So here's our guide to the process:
Risk: Security, Access, YieldDo consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here's one of several earlier articles on security, access and yield.