The government has confirmed that a new type of ISA is to be launched on 6 April 2016 for loans arranged via a Peer to Peer lending Platform. David Brown, MD of Folk2Folk – the South West‘s leading P2P company, commented ‘the sector has been pushing for this moment for several years now and we are delighted about the government’s announcement.
This is a key moment for the industry and will help bring further acceptance and validation to P2P. We are really excited about the future of P2P and we look forward to supporting more businesses, whilst at the same time providing our investors with a fair return’. P2P lending has exceeded £3 billion pounds in the UK alone and the growth rate is showing no signs of slowing.
The government has been supportive of P2P over the last few years and recognises that the sector has a significant part to play in supporting economic growth. The government wants to ensure that there is strong competition in the banking and finance sector and alternative finance providers such as Folk2Folk are seen as a means to opening up competition.
The government also wants to ensure the UK is leading the way in FinTech and an Innovative Finance ISA is one of the ways it can achieve this. Folk2Folk is one of the leading P2P companies in the UK and has introduced over £60m to businesses and business people since launching in early 2013.