Peer-to-Peer Lending Investor Guide · 2019-07-24 · Peer-to-peer lending (or “P2P”) is a...

IndependentlypreparedbyOrca.Thisreportanditscontentsareconfidentialandaremadeavailablestrictlyforinformationalpurposes.Thisreportmaynotbereproduced.

Peer-to-peerlendingguide|ORCA|SEPTEMBER2017 2

Peer-to-PeerLendingInvestorGuide

InnovatinganAncientCreditModel

Authors

SamanthaMcBride(OrcaInvestmentDirector)

IainNiblock(OrcaCEO)



CONTENTS

OPENINGSTATEMENT

THEBASICS

WhatisP2P?

TheUKLandscape

WhoaretheBorrowers?

ConsumerLending

BusinessLending

PropertyLending

WhoaretheLenders?

RetailInvolvement

TheBritishBusinessBank

InvestmentTrusts

TheGrowthofP2P

MegaTrend1:TheBanksStoppedLending

MegaTrend2:LowYieldEnvironment

MegaTrend3:GrowthinTechnology

MegaTrend4:Anti-BankSentiment

HowisP2PRegulated?

TheHistoryoftheFCAandP2P

RegulationofInnovativeFinanceISA

TheFutureofFCARegulation

THEBENEFITS

Risk-adjustedReturns

EfficientAssetClass

Uncorrelated

Diversification

InnovativeFinanceISA

IncomeorGrowth

THERISKS

PerformanceRisk

PlatformRisk

MarketRisk

LiquidityRisk

THEBESTPRACTICES

HowtoThinkAboutPortfolioConstruction:

WhereDoesP2PFit?

HowtoThinkAboutDiversification

HowtoThinkAboutImplementation

HowtoThinkAboutActivevs.Passive

HowtoThinkAboutLiquidity

HowtoThinkAboutPerformance

HowtoThinkAboutOperatorHealth

HowtoThinkAboutBorrowerSupply

THEMYTHBUSTER

“P2Pisthelastandonlychoicefor

riskyborrowers”

“P2Pisanewfad”

“P2Pisthesameasequitycrowdfunding”

“OnlymillennialsinvestinP2P”

“AninterestraterisewillkilltheP2Pindustry”

“P2Pwillsufferduringaneconomicdownturn”

THECONCLUSION

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Peer-to-peerlending(P2P)isstillgrowingatarapidrate.Roughly200,000retailinvestorshavebenefitedfromthestable,attractivereturnsonofferwiththe industrysurpassing£10billion incumulative lending. Inthefirsthalfof2017themarket experienced a 59%market growth rate when compared to the same period in 2016. An impressive figureconsideringtheindustryreached£3.2billionoflendingin2016alone.

Thereasonsforgrowthareclear:attractive,predictableinvestorreturnswhichareshieldedfromstockmarketvolatility;anddownsideprotection throughsecurityprovisionsand theopportunity todiversifyaportfoliowithanalternativeinvestment which was previously only available to institutional investors. The fundamentals of this asset class areextremelystrongandsodifferentiatedthatwehavenodoubtthatexceptionalgrowthwillcontinueintheyearstocome.

Ontheborrowerside,asuperiorexperiencehasdrivendrovesofborrowerstoP2Pplatformswhichlendacrossarangeoflendingsub-sectorsincludingconsumer,businessandproperty.ThevalueofP2Plieswiththeabilityofplatformstooriginategoodqualityborrowersandpresenttheseborrowerstoyieldhungryinvestors.Initspuristform,P2Pisadirectloancontract,knownasaP2Pagreement,betweenthelenderandborrower.TheroleofaP2Pplatformistofacilitatethisagreementbyoriginatingloansandmatchingborrowerstolenders.

TheUKregulator-theFCA-hastobecreditedinpartwiththegrowthofP2P.AlthoughthehistoryofregulationwithintheP2Pmarkethasbeenrelativelyshort,datingbackto2014,theFCAhasestablishedaframeworkforthisassetclasstoflourish.InApril2016,anewISA,theInnovateFinanceISA(IFISA),waslaunchedallowinginvestorstoholdtheirP2Pinvestmentswithinatax-efficientISAwrapper.Atthesametime,financialadvisersweregivenpermissiontoadviseon‘P2Pagreements’.Regulationhasbeenincrediblypowerfulinevolvingthemarket.Toputthisintoperspective,theUKP2Pmarketnowrepresentsapproximately85%oftheentireEuropeanmarket.

It’sworthnotingthatitwasaUKbusiness,Zopa,thatinventedP2Pbackin2005.TheindustryasawholeisatrueexampleofBritishinnovationwherethegovernmenthassupportedadequatelytoencourageprivatesectorgrowth.

However,withmarketgrowthcomescomplexity.Thisisparticularlytrueforinvestorsattemptingtoappraisethewiderangeofinvestmentopportunitiesonoffer.We’vewrittenthisguidetohelppeopleunderstandP2P,howP2Pmightfitwithintheirinvestmentportfolioandtoprovidebestpracticesforaccessingthemarket.AspecialthankstoSamanthaMcBride forpulling thisguide togetherand JordanStodart for reviewingpreviousdrafts.Reallygood teameffort sothanks.

IainNiblock–CEOofOrcaMoney

2 OPENINGSTATEMENT

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WhatisP2P?

Peer-to-peerlending(or“P2P”)isamethodofdebt-financingwhichconnectsborrowersdirectlywithlendersacrossanonlineplatform.Thisprocessisdesignedtobethemostefficientformoflendingbycuttingoutthemiddlemen,namelythebanks,intheprocess.P2P involvesthreeparties: the lender, theborrowerandtheP2Pplatform.Similartoanyother loanagreement, thelenderisresponsibleforlendingcapitaloverthetermoftheloan,whiletheborrowercommitstorepayingthiscapitalplusinterestinaccordancewiththeloanagreement.TheP2Pplatformhelpstofacilitatethetransactionbyperformingacreditassessmentontheborrowerandmatchingborrowerstolendersmoreefficientlyandmorerapidlythanwouldhavebeenthecaseinyearsgoneby.

HowP2PWorks1

Source:OrcaResearch.

P2Pis,atthesametime,theverylatestandtheoldestformofcredit.Thelatest,becausewithoutdigitaltechnologyandtheconsequentabilitytotransactbusinessinstantaneouslyacrossanydistanceamongstlargenumbersofpeople,therewouldbenoP2Psector.Theoldest,becauselongbeforetherewerebanksorfinancebrokers,peoplewithmoneytosparelentittothoseinneedofitforwhateverreason–business

1Note:Numbersareapproximations,basedonOrcaResearch(August2017).

3 THEBASICS

BorrowersUseP2Pplatformstoborrowerfunds

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orpersonal.Critically,whilereplicatingthetime-hallowedpracticeofone-personlendingtoanother,P2Pplatformsusecontemporarytechnologytoallowsuchlendingwithoutanypriorknowledgeoftheborrower.Insteadoflendersbeingrestrictedtolendingtotheirneighbours,theycannowtheoreticallylendtoanyoneintheworld.Thisancient-yet-moderncreditmodellandedintheUKin2005,withthearrivaloftheZopaplatform.Sincethen,therateofgrowthhasbeenimpressive,toputitmildly.

TheUKLandscape

TocelebratetheP2PmarketsurpassingthecumulativelendingmilestonebackinJuly2017,mappingoutwheretheUKlandscape stands today2. An ecosystem of technology businesses is evolving around the P2P market, both aidingborrower and lender origination. For example, Orca helps educate retail investors and financial advisers withindependentduediligenceand,ontheborrowerside,wehaveseenawaveofpartnershipswithnewbankingappssuchasRevolutandParitireferringborrowerstoP2Pplatforms.

UKALTERNATIVELENDINGECOSYSTEM

2 For more information about this infographic, or to find the most up to date version, visit Orca’s website: https://www.orcamoney.com/uk-alternative-lending-ecosystem.

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Source:OrcaResearch.

P2Pisabeautifulfinancialinnovationwhichdeliverstruevaluetobothinvestorsandborrowers.Thereisnosignofthischangingand,withthis,weexpectthattheindustrywillcontinuetogrow,albeitatmoresustainablelevelsthanwehaveseensofar,andtheecosystemarounditwillcontinuetoflourish.

WhoaretheBorrowers?3

ConsumerLending

Thepioneerof theUKP2P industry,Zopa, operates in the consumerlendingspaceandoriginatedthefirstconsumer loan back in 2005. Theconsumer lending sub-sectorrepresentsthelargestofthethree,atapproximately45%oftheoverallP2Pmarket.Consumerloansaregrantedfor a variety of purposes, includingcar finance, home improvements,debt consolidation and weddings.Typical loan sizes are between £250and£30,000.An issue that this sub-sector is currently facing surrounds loan origination. In fact, Zopa, the largest lender in theconsumerlendingspace,iscurrentlyclosedtonewretailinvestorsduetoinsufficientloansupply4.Tomitigatethisissue,platforms have sought to strike up high-profile partnerships to increase public awareness and attract high qualityborrowers.Forexample,ZopahaveformedapartnershipwithAirbnb,whichenablesborrowersontheZopaplatformtoincludeincomefromtheirAirbnbrentalswhentheyapplyforloans.Inaddition,thepartnershipaimstohelpborrowerspaydowntheirloansquickerbyhostingontheAirbnbplatform.

3DataiscorrectasatAugust2017.Tofinddailyupdateddata,youcanvisitOrca’sWebsite:https://www.orcamoney.com/industryorformorein-depthanalysisofindividualP2PplatformsyoucanvisitOrca’sAnalyticsService:https://platform.orcamoney.com/.4TheZopaplatformisclosedtonewretailinvestorsasatAugust2017.PotentialinvestorscanmonitorthesituationandregistertheirinterestontheZopawebsite:https://www.zopa.com/lending.

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BusinessLending

Funding Circle, which operates in the businesslendingspace,launchedintheUKin2010andhasgrown significantly since then to become thelargest P2P platform in theUKmarket. Businesslendingasasub-sectorhasalsogrownsignificantlyand now represents approximately 35% of theoverall P2P market. P2P has proven particularlypopular with manufacturing and engineeringcompaniesaswellasthoseintransport,utilities,finance and retail. Loan sizes can vary quitesignificantly. Funding Circle, for example, offerssmallbusinessfundingfromaround£5,000anduptoaround£350,000.Otherplatformsofferloanstobusinessesinthemillions.

PropertyLending

Propertylendingaccountsfortheremaining20%of the P2Pmarket, with a number of platformsoperating in this space such as LendInvest andLendy.Thereareavarietyoffinancingmodelsandproductsinpropertylending,rangingfromshort-termbridgingfinancetolonger-termcommercialandresidentialmortgages,andconstructionanddevelopment.

WhoaretheLenders?

RetailInvolvement

ThemajorityoflendersintheUKP2Pmarketareindividualinvestors.Weestimatethattherearearound200,000retailinvestorscurrentlylendingintheUK.It’sfairlynormalforinstitutionalinvolvementtoremainlowerintheearlystagesofanewsector.Firstly,newsectorsaresimplynotlargeenoughforinstitutionstoinvestin,asinstitutionsoftenrequiretheabilitytowritelargetickets,inthetensofmillions,whilealsoensuringthattheydonotrepresenttoolargeaproportionofaparticularprovider/platformduetotheriskofconcentration.Secondly,untilthesectorgainsthestampofapprovalfromtheregulatorsandhasadecenttrackrecord,thoseinchargeofaninstitution’swealtharesimplyunwillingtoputtheirnecksonthelineforit.Instead,they’dratherinvestinwell-known,bluechipassetclasseswhichtheirpeersareallinvestedintoo.

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There’smuchlesschancesomeonewillgetfiredforthoseinvestmentsiftheygetintotrouble.Thirdly,theP2Pecosystemisstillinitsearlystages,whichmeansthataccesstoindependentresearchandadequateduediligencetoolsislargelyunavailable.

There are some drawbacks ofinstitutionalinvolvementinP2Ptobeaware of. The main concern is thepotential conflicts of interest thatmay arise, which could seeinstitutions cherry-picking the bestdeals from platforms to thedetrimentofretail investors.Indeed,the FCA has also highlighted thisconcernandwilllikelybemonitoringthesituationcloselyinthefuture.While theremaybe some concerns,growinginstitutionalinvolvement,onbalance,shouldbeseenasapositivesignfortheP2Psector.AslongasP2Pparticipants remain well-versed onthe risks involved and the FCAimplementsthenecessaryrules,institutionalinvolvementcouldbeagreatthingforborrowers,lendersandthewiderecosystemalike.Institutionsmeanmorecapitalforlendingandanincreaseddemandforrobustnessinthecreditandbusiness models involved, which in turn helps to grow the sector and stabilise the businesses of the platforms.Institutionsalsoincreaseawarenesswithotherinvestorgroups,thushelpingevenmorecapitaltoflowintothesector.Asplatformsbecomelargerandmoreprofitable,wecouldalsoseecostsavingspassedontoinvestors.

TheBritishBusinessBank

Oneofthekeymilestonesforinstitutional involvementinP2PwastheinvolvementoftheBritishBusinessBank.TheBritishBusinessBank isaUKGovernment-ownedeconomicdevelopmentbankestablished to increase thesupplyofcredittosmallandmediumenterprisesaswellasprovidingbusinessadviceservices.Ithassofarinvestedmorethan£100m through a number of P2P platforms, with the majority invested through Funding Circle and further capitalinvestedthroughZopa,RateSetterandMarketInvoice.

InvestmentTrusts

Thereareanumberof listed investmenttrusts, includingP2PGlobal Investments,VPCSpecialtyLendingandRangerDirectLending,whichhaveproventobeapopularstructurewithinstitutionalinvestors.Institutionshavebeenattractedtothesetruststhankstotheirpromiseofhighyieldsinthislowyieldenvironmentandthebeliefthattheteamsinvolvedhavetheskillstoconstructthebestperformingportfolios.AdrawbackofthesetrustsbeinglistedisthattheirpricecanfluctatesignificantlyawayfromNAV,causinglargeperformanceimpacts;forexample,in2016manybegantotradeatalargediscounttoNAV(>20%),havingpreviouslytradedatapremium.

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TheGrowthofP2P

12yearsafter the first loanwasoriginatedon theZopaplatform,P2Phasgrownsignificantly, surpassing the£10bncumulative lendingmilestone in July2017. AlthoughZopahasbeen inoperationsinceMarch2005, itwasnotuntilFundingCircleandRateSetterjoinedthepartyin2010thattheassetclasssawitsexplosivegrowth.Samir Desai, CEO of Funding Circle, has previously described how three powerful trends have created a perfectenvironmentforP2Ptogrow.

(1) Post2008,financialinstitutions’appetiteforlendingreduced(2) and,asaresult,theBankofEnglandcutinterestratestoarecordlow,leavinginvestorsstarvedofyield.(3) Atthesametime,InternetMarketplaceslikeUberandAirbnbdisruptedmassivetraditionalindustries.

WebelievethatthereisafourthtrendwhichspurredgrowthintheP2Psector–(4)consumersdistrustfinancialservices,particularlywhenitcomestomajorbanks.

“We’reenteringaGoldenAgeforPeertoPeerLending”SamirDesai(CEOofFundingCircle)

We’verevisitedthesetrendstounderstandifmarketconditionsstillholdtruetodayandtomakepredictionsonwhatwillcatalysefurthergrowthintheindustry.

MegaTrend1:TheBanksStoppedLendingDoes the trend still hold truetoday?The consumer lending market,where Zopa, RateSetter andLending Works play, hasbecome increasinglycompetitive. Since 2008, wehave seen a resurgence fromthe traditional lenders in theconsumer lending market, aswell as a flurry of newentrantssuchasHitachiPersonalFinance,TescoBank,Sainsbury’sBankandthe AA. This increasedcompetition, particularly forprime borrowers, has drivendowninvestoryieldsintheP2Pmarket.Goodforborrowers,badforlenders.Withconsumerlendingaccountingfor46%oftheUKP2Plendingmarket in2016,thisriseincompetitionistheprincipalreasonweareseeingaslowingrowththroughoutthetotalP2Pmarket.

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However,thebusinesslendingmarkethasnotrecoveredinthesamewayandcontinuestocontributetothegrowthofP2P.Infact,BankofEnglanddata(right)showsthattheamountofloansoutstandinghascontinuedtodropsince2011.Comparing today’s conditions to 2011, there is 16% less capital outstanding within the SME lending markets. P2Pbusinesslending–inparticularFundingCircle–appearstohavefoundanicheoflendingbelowamillionpoundsandonaveragebelow£100,000.Thisleveloflending,targetingSMEbusinesses,isbelowthesizewhichattractslargefinancialinstitutions.

MegaTrend2:LowYieldEnvironmentChronically low inflation-adjustedreturnson10yearGilts and cash ISA ratessittingbelowzeropresentsamajor issue for savers,pensions and the broaderfixedincomeindustry.Does this trend still holdtruetoday?Absolutely, this trend is justas prominent today than itwasfiveyearsago.Whiletheexacttimingandthelevelstowhich rates will be risen isdebatable, there is littleevidencetosuggestthatasubstantialriseinbaserates,returningthemtonearhistoricallevels,isonthecardsfortheforeseeablefuture.HowardArcher,economistattheconsultancyfirmIHSMarkit,toldtheGuardianinMarch2017:

“Whilewebelievethenextmoveininterestrateswillbeup,wedonotseethishappeningbefore2019anditcouldwellbedelayedfurtherbyprolongedeconomicandpolitical

uncertainties.”

MegaTrend3:GrowthinTechnology

Attheturnofthemillennium,thewidespreadadoptionofhomecomputingtookoff.Thisresultedindirectinnovationswithinpersonalfinanceasmoreandmorepeopletooktotheircomputerstomanagetheirfinances.TechnologyisatthecoreofP2P,connectinglenderandborrowerseamlesslyonanonlineplatform.JustlikeUberdisruptedthetaximarketandAirbnbthehotel,P2Phasdisruptedtraditionallendingmarkets.Theunderlyinglendingproduct,cash,offeredbytraditionalfinancialinstitutionsisnodifferenttothatofP2Pplatforms.Oftenthecreditassessmentprocessisverysimilar,withP2Pplatformsrecruitingex-bankerstomanagetheirriskteams.

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ThetruedifferentialbetweenP2Pplatformsandtraditionalfinanceprovidersistheuserexperienceand,specifically,thespeedatwhichacreditdecisioncanbemade.Doesthetrendstillholdtruetoday?Althoughtheuserexperienceoftheincumbants’technologyisimproving,legacysystemsandprohibitiveorganisationalstructurespreventsuchlargebusinessesfromtechnologicallyexcelling.P2Pplatformswillcontinuetousetechnologytotheiradvantageandthiswillcontinuetobeakeydifferentiatingfactor.Fundamentally,P2Pplatformsofferabetterexperienceforborrowersandlendersalike.

MegaTrend4:Anti-BankSentiment

The2008creditcrisisandsubsequentscandalssuch as themiss-selling of PPI had led to anincreasing negative sentiment and generaldistrustoffinancialservices.Oneofthelongestrunning surveys on consumer trust is theEdelman’sTrustBarometer.In2017,only45%ofUKconsumersstatedthattheyhavetrustinfinancialinstitutions.

With such a poor level of trust throughoutfinancial services, consumers have searchedfor alternatives. Funding Circle’s visionstatementdirectlyappealstothissentiment:

“We’rebuildingabetterfinancialworld.FundingCirclewascreatedwithabigidea:Torevolutionisetheoutdatedbankingsystemandsecureabetterdealforeveryone.”Doesthetrendstillholdtruetoday?While consumer trust for financial services is growing oncemore, and it feels like thewide-scale bank bashing hassomewhatsoftened,itisclearthatthereremainsalevelofsceptismwhenitcomestotraditionalfinance.Indeed,whilethesentimentindexhasgrownquitesignificantlysinceitslowof21%in2010,just45%ofconsumerstrustingfinancialservicesremainsaremarkablylownumber.Consumerscontinuetobefrustratedwiththeirbanksand,importantly,areincreasingly wanting differentiated products and choices. This is leading consumers to alternative products and“challenger”companies,asitisdifficulttoidentifydifferencesinmajorbanks’products,fromprocessestomarketing,astheline-upfromoneinstitutiontothenextisverymuchthesame.

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HowisP2PRegulated?

TheHistoryoftheFCAandP2P

ThehistoryoftheFCA’sregulationofpeer-to-peerlendingisarelativelyshortone;startinginApril2014whentheytookovertheregulationofconsumercreditfromtheOfficeofFairTrade.

RegulationofInnovativeFinanceISA

TheInnovativeFinanceISA(“IFISA”), launched in April 2016,allowsforP2Ploanstobeheldwithin a tax-efficient ISAwrapper. The IF ISA was, andstillis,significantforanumberof reasons: It is a shiningexample of the FCA’scommitment to the growingP2P sector and the ISArepresents a trustworthystructure and brand withbroad,massmarketappeal.

TheFutureofFCARegulation

The total number of P2Pplatforms with fullauthorisation now stands inthe twenties according to theOrcaIFISAtracker5,whichisupfrom just two in November2016,andweexpecttheflurryofnewlyauthorisedplatformstocontinuethrough2017.WiththeheavyhittersnowpassingthebarandfurtherentrantsgettingtheFCA’sstampofapproval,itseemslikelythatthesectorwillcontinueonitsgrowthtrajectory.OneareaofgrowthexpectedisinIFISAs,which,onceHMRCISAplanmanagerapprovalhasbeengranted,cannowbeofferedbythelargerplatformsthankstotheirrecentlygrantedfullauthorisations.

5Formoreinformation,visitOrca’swebsite:https://www.orcamoney.com/innovative-finance-isa.

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Regulationislikelytocontinuetotightenasthesectorgrowsandmatures.Indeed,inDecember2016,theFCApublisheditsinterimfeedbackonthecallforinputtothepost-implementationreviewofitscrowdfundingrules6.TheFCAexpectstopublishnewruleslaterin2017.ClearlythemarketstillhassomeconcernswhenitcomestoP2P,astherehasbeenlittleuptakefromintermediariesand,althoughit’sincreasing,institutionalinvolvementisstillrelativelysubdued.Asamitigatingfactor,theP2Pecosystemwillcontinuetodevelop;independentthirdpartiessuchasOrcawillhelptoeducateinvestorsandprovidethenecessarytransparencyandtoolsrequiredtoconductin-depthduediligence.So,aslongastheFCAmaintainsitscommitmenttoensuringinnovationisallowedtoflourish,whilestrengtheningthesector,newrulesshouldbewelcomenewstoallinvolved.

6Formoreinformation,visittheFCA’sresearch:https://www.fca.org.uk/publication/feedback/fs16-13.pdf.

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Risk-adjustedReturnsInalow-yieldenvironment,P2Pcanofferstable,predictable,risk-adjustedreturns.P2Pinvestmentsoffer average annual returns of between 5% and 6%. Investors can achieve upwards of 10%annually,dependingontheirappetiteforrisk.

EfficientAssetClassOfferingcreditasaninvestmenthasbeenaroundforcenturies.Creditassessmentisnotnew.P2Pprovidershaveinnovatedbyofferinganefficient,low-costmethodofaccessingcreditinvestments.

UncorrelatedP2Pinvestmentsarenotlistedonanexchange,meaningtheperformanceofassetsarenothighlycorrelatedtostockmarketvolatility.P2Passetsareexpectedtoperformbetterduringaneconomicdownturnincomparisontoequitiesorbonds.

DiversificationP2P lendingallows investorstodiversify intoanalternativeassetclass.Someofthe largestP2Pproviders auto-diversify investors’ capital across a large number of borrowers, increasing theirexposure,andreducingtheriskofborrowerdefault.

InnovativeFinanceISAThenewIFISAallowsinvestorstoholdtheirP2Pinvestmentsinatax-efficientISAwrapper.P2PProvidersofferingtheIFISAcanbefoundontheOrcaIFISAtrackerpage.

IncomeorGrowthInvestorsoftenhavethechoiceoftakinginterestpaymentsasanincome,orforthesepaymentstobereinvested,enablingcapitalgrowth.

4 THEBENEFITS

[

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Note: P2P is analternative investmentwhere fundsarenot coveredby the Financial ServicesCompensation Scheme(FSCS).Ultimately,withoutFSCScoverage,investors’capitalandinterestareatrisk..PerformanceRisk

● Credit Risk: Borrower default may result from a poor initial creditdecisionoreconomicfactors(seemarketrisk).

● Cash drag: P2P platforms create a marketplace of borrowers andlenders.Wherean imbalanceexistsofmoreborrowers than lenders,investors’capitalmaysit idlewaitingtobe lent.Thiscansignificantlyreducereturns.

PlatformRisk

● Platform insolvency: Platforms may become insolvent. FCA rulesdictate that platformsmust have sufficient plans in place to ensureborrowerrepaymentscontinue,butsuchaneventwouldlikelycausesignificantturbulenceforinvestors.

● Fraud: Although FCA rules stipulate P2P platforms must segregateclientassetsfromtheirown,Nestareportedintheir2015thepotentialcollapseofoneormoreofthewell-knownplatformsduetomalpracticewasthebiggestrisktothegrowthofthesector.

● Technologyrisk:TheentireP2Pindustryisbasedonlineandaseverecybersecuritybreachisarealrisk.CybersecuritywashighlightedinNesta’s2015reportasoneofthekeyriskstothesector.

5 THERISKS

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MarketRisk

● Interest rates: With interest rates holding record-low levels since2009, theP2Psectorhas largelygrown ina lowyieldenvironment.The risk here is that P2P returns may not appear as attractive toinvestors as compared to other asset classes in a higher rateenvironment.

● Unemployment rates - consumer lending: If unemployment rateswere to rise, theriskofborrowerdefaultwouldalso risewhich, inturn, would lead to diminishing investor returns. During the2007/2008recession,Zopa’sdefaultratesrosefrom0.49%in2007to5.07%in20087.However,it’swell-documentedthatZopaperformedwellthroughthisperiod,withtheplatformprintingreturnsofmorethan 5% in the entire period prior to 2014. In fact, post 2008,competition for borrowers was very low, which pushed up theweighted average borrower rates, even for prime borrowers,providinginvestorswithsuperiorreturns.

● Propertyprices-propertylending:Ifaloanbackedbypropertymovesintodefault,theP2Pproviderhastheabilitytosellthepropertyheldassecurity.Twothingsareimportanthere.Firstly,howeasywillitbeforthepropertytobesold?Secondly,whatvaluewillthepropertyorasset be sold at? Typically, P2P platforms will ensure they havesufficientloan-to-valueratiostoensuretheycanwithstandamarketdown-turn.

LiquidityRisk

• Investorsarecontractuallyobligedtolendfundstoborrowersovertheterm of the loan. The inherent nature of lending is therefore illiquidunless the loan canbe sold to a new investor.Depending on the P2Pplatform itmaybepossible to sell loan commitmentson a secondarymarket.Generally,thelargertheP2Pplatformintermsofloanvolumes,themoreactiveorliquidthesecondarymarketis.

7OrcaindependentlyanalysesP2Pplatformloanbooks.Formoreinformation,visitOrca’sAnalyticsService:https://platform.orcamoney.com/.

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HowtoThinkAboutPortfolioConstruction:WhereDoesP2PFit?

Conventionalwisdom,derived frommodernportfolio theory, tellsus thatoptimalportfolios are thosewhichareasdiversifiedastheycanpossiblybe.Diversification,afterall,istheonlywayinvestorscanreducetheriskoftheirportfolioswithoutreducingtheexpectedreturns(seebelowsectiononhowtothinkaboutdiversification).OneofthemostfamousapplicationsofthisintheworldofinstitutionalportfolioconstructionisDavidSwensen’sYaleModel(ortheEndowmentModel).What’sinterestingisthataswellasbeingaproponentforinvestingacrosstheentirerangeoftraditionalassetclassesonoffer,theEndowmentModelhashadagrowingfocusonalternativeassetclasses.

Ourassetclassmapshowsthetraditionalandalternativeassetclasseswhichcompriseatypical,institutional,multi-assetclassportfolioofthiskind.P2Pbecomespartofthealternativecreditbucketinportfolios.Asanadditionalbonus,P2Pcanberelativelyliquidwhencomparedtomanyotheralternativeassetclasses,whichgenerallyshouldallowforhigherallocations.Unfortunately,when itcomestoretail investors it’sdifficult toaccesstheworldofalternative investments,withtheexceptionofpersonal,residentialproperty.Evenforsomeinstitutions,accessingthebestdealscanbetricky.Thishasledtoretailportfoliosthatarelargelycomprisedofhighly-liquid,cost-efficientequitiesandbonds,forexampleina60/40percentagesplit.Insomeportfoliostheremayalsobesomeexposuretocommodities.Withtherecentadvancementoftechnology,efficientpassiveinvestmentvehiclessuchasETFsandonlineinvestmentplatformshaveprovidedevereasieraccesstothiskindofportfolio.Now,thisiswhereP2Pstepsintoitsown,asitfinallyprovidesbroadaccesstothe

6 THEBESTPRACTICES

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alternatives space. P2Pplatforms have nowdemocratised the process ofinvesting in alternatives andso individual investors cancomplement their existingtraditional portfolios withhigher yielding, uncorrelatedalternativecredit.

P2P platforms are able toachieve these superior riskadjusted returns thanks totheir structural efficiencies.These platforms cut out themiddleman (i.e., the banks)and are operating as newFinTech businesses, whichleaves them free of archaiclegacytechnologyandoperatingsystems.

HowtoThinkAboutDiversification

In1952HarryMarkowitz, theNobelPrizewinningeconomist,describeddiversificationas the ‘only free lunch'wheninvesting.Thisisbecausediversificationistheonlywayinvestorscanreducetheriskcharacteristicsoftheirportfoliowhilenotreducingtheportfolio’sreturnexpectations.Fast-forward65yearsandthissamephilosophyappliestoP2Pportfolios.Whetherinvestingthroughanactiveorpassivestrategy,therearetwomainwaystodiversifyaP2Pportfolio.Firstly,investorsshoulddiversifytheirloanselectionacrossalargenumberofborrowers.ThismitigatesthecreditriskinherentinP2Pinvesting,asoneborrowerdefaultingwillhavelessimpactonyouroverallportfolio.Ofcoursethisdoesn’tmitigatetheriskcompletely,asalargenumberofborrowersmaydefaultontheirloancommitmentsatthesametime.Secondly,investors shoulddiversify their exposure toeachP2Pplatform.Anumberof risks exist at aplatform level includinginsolvency,fraudandsecurity.Ifaplatformweretofailforoneofthesereasons,investorsmaybesubjecttoturbulence,havedifficultywithdrawingtheircapitalandmaybeatriskoflosingsomeoralloftheircapitalaltogether.DiversifyingyourholdingsacrossmultipleP2Pplatformshelpstomitigatethisrisk.

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HowtoThinkAboutImplementation

ThereareanumberoffactorstoconsiderwhenchosinghowtoimplementaP2Pportfolio,includingdirectinvestingorinvestingthroughastructure.TheilliquidnatureofP2Phasposedanissueforlargeinstitutionalinvestorswhoareusedtohighlyliquidinvestments.Listed investment trusts such as P2P Global Investments and VPC Specialty Lending have resolved this issue byestablishinginvestmenttrustswhichinvestinP2Ploans.

However,suchstructuresdonottruly alter the underlyingliquidityoftheP2Pportfolioand,duetotheirlistednature,exhibitalotmorevolatility.WhiledirectP2P investing is largely shieldedfrom external market factorssuch as general marketsentiment or interest ratemovements, the prices of listedvehicles canmove around quitedramatically. The largeinvestment trusts are currentlytradingatlargediscountstoNAV.A further drawback of investingthrough a structure is theincreased costs of activemanagement, leading to higherfeespaidbyinvestors.Inthepasttwoyears,wehavealsoseenanumberofnon-listedpooledinvestmentstructuresemergewhichagainaretaskedwithactivelyselectingloansoriginatedbyP2Pplatforms.Goji’sCrowdBondtargetingbothretailinvestorsandfinancialadvisersisanexampleofthiswhichhastheaddedbenefitofbeingInnovateFinanceISAeligible.Investorsinthis kind of structure benefit from platform diversification, butwill lack the transparency and lower costs of directinvesting.

HowtoThinkAboutActivevs.Passive

Asdiscussedinthesectionabove,investorscanchosetoinvestdirectlyonP2Pplatforms(eitheractivelyorpassively)orinvestthroughastructurewhichbenefitsfrommoreactivemanagement.WheninvestingdirectlyonP2Pplatforms,investorswillneedtomakethedecisionwhethertheywouldliketoinvestactivelyorpassively.P2PplatformssuchasThinCatsandLendyrequireinvestorstoactivelyselecttheloanstheywishtoinvest in,whileotherssuchasZopaandRateSetterautomaticallymatchcapitalacrossa largenumberofborrowers,creatingapassiveinvestment.

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By actively selecting loans investors can implement their own investment strategywhichmay yield greater returns.Althoughachievingalphaispossible,investorsareresponsiblefordiversifyingtheirportfolioandmanagingcashdragwhichcanbedifficultandtimeconsuming.Passiveinvestmentsallowforcapitaltobeallocatedtoarangeofnon-specifiedborrowersusing“autobid”functionality.Asanexample, FundingCircleallows investors toeitheractively selectopportunitiesor investpassively; active loanselectionprovidesachoiceofloansgradedbetweenA+toEwhiletheautobidfunctionautomaticallyinvestsacrossloansgradedA+toE

HowtoThinkAboutLiquidity

WhenitcomestoP2P,liquidityisaparticularlyimportantconsideration,becausetheunderlyingloanscanhavefairlylongmaturities, often up to 5 years.Many investors in P2Pmay forget that they are actually entering into a loanagreementasalender,asopposedtosimplyinvestinginacertainasset.WhenaninvestorcommitsmoneytoaP2Pplatform,theyareenteringintoaloanagreementwhichisessentiallyacommitmenttolendacertainamountofmoneytoacertainborrowerforadefinedperiodoftime.Thismeansthatyou,thelender,areonthehookforthatdefinedamountoftimeandhavenolegalrighttoaccessyourcapitalearlysolongastheborrowerisabidingbythetermsoftheloanagreement.However,manyplatformshavebuiltincleverfunctionalitywhichallowsinvestorstoaccesstheirmoneyearlybysellingtheloansonasecondarymarket.Thisoftenhappensveryquickly.Sometimesyoucanhaveearlyaccessfor free and someplatforms charge, so it’s important to check the specific termsof your account. It’s important toremember though that you can only sell your loans if there is someonewilling to buy, and under adversemarketconditionsliquiditymaydryup.Investorscanachievebestpracticebyensuringthey(a)understandtherealliquidityoftheirportfolio,andviewtheearlyaccessmechanismsasabonus,(b)sizeP2Pwithintheirportfolioappropriately,dependentupontheirliquiditytolerance,and(c)diversifytheirholdingsasmuchaspossibletobest-placeportfoliosforadversemarketconditions.

DrawinganincomefromyourinvestmentOnewaytogainaccesstoyourmoneyistochoosetotakeincomefromyourpeer-to-peerloans,asopposedtore-investing any incomeearnedor capital repayments in new loans.Manyplatformswhichoffer “autobid”functionalitywillallowinvestorstochoosewhethertheywouldlikeinteresttobeautomaticallyre-investedorpaidoutasincome.Thebenefitofthismethodisthatyougainliquidityfromyourinvestmentwithouthavingtorelyonotherlendersandthereisnoadditionalcost.Acoupleofthingstobeawareofwhenyouaredoingthisisthat(a)itcancauseacash-dragonyourportfolio,duetocashsittingidleinyouraccountsand(b)itmayincreaseyouradministrativeburden,asyouwillneedtomanageyourcapitalflows.

EarlyAccessAccountsSomeP2Pplatformsofferspecificproductsdesignedforearlyaccess.Typically,theseaccountsallowinvestorsto withdraw their capital, under normalmarket conditions, almost immediately and free of charge. Theseproductsgenerallyhave lowerratesassociatedwiththem.RateSetterandAssetzCapital, forexample,offerearlyaccessproductswhichofferratesof3%and3.75%respectivelyatthetimeofwriting.

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“Undernormalmarketconditions”isanimportantphrasehere.Whiletheseproductsofferearlyaccess,undernormalmarketconditions, the investor isstill investing in loanswithmaturitiesofupto5years inboththeRateSetterandAssetzCapitalproducts.Therefore,theunderlyingliquidityoftheassetshasnotgottenshorterandiscertainlynotalignedtothedailyliquidityofferedbytheproduct.Investorsshouldviewtheseproductsashavingtheadvantageofbeingspecificallydesignedforearlyaccessandsomaketheprocesseasierandfasterfortheinvestor,whilenotchargingafeeforthisservice.Theyshouldnotbeseenasawaytoimprovetheunderlyingliquidityofyourloancommitments.

UnderadversemarketconditionsAsdiscussed,youcanonlyaccessyourmoneyearlysolongastherearebuyersorotherlenderswhocantakeonyourloanobligations.Thisisfineundernormalmarketconditions,butwhathappensunderadversemarketconditions?Well, itmaymean that therearemorepeoplewanting to sell their loanobligations than thosewishingtobuythem.Inthisscenario,investorsmayneedtoofferdiscountstoencouragepeopletobuytheirloans,ormaynotbeabletosellatall.Ifliquidityweretodryupandyoucannotfindabuyeroranalternativelender,youwillbeobligatedtoholdyourloantoterm.Onitsown,thisisnotnecessarilyabadthing,astheunderlyingloanmaynotbeaffectedbytheadversemarketconditions and you will simply be earning interest as usual. The trouble comes because adverse marketconditionsmaycomehandinhandwithanincreasingnumberofborrowersdefaultingontheirloans,reducingyour return expectations. To put this all into context though, P2P is not a unique asset class from thisperspective.Themajorityoffinancialinvestmentsmayseeliquiditydryupand/orseeanegativeperformanceimpactunderadversemarketconditions.

HowtoThinkAboutPerformance

Aswithallinvestments,generally,thehigherthereturnthehighertherisk.ThecreditperformanceofaP2Pplatformcanbeevaluatedusingbothhistoricalandcurrentdata.Fortunately,thelargeP2Pplatformsarefairlytransparentwithdetailedstatisticsandloanbyloandatabeingmadeavailable.ThishasallowedusatOrcatoindependentlyanalyseanumberofP2PplatformswiththeresultsdisplayedontheOrcaAnalyticsService8.Currentlyit’sfreetosignup,withnoobligationonyourpart.It’simportanttonotethathistoricaldatashouldbereviewedwithrespecttotheloanterm.Aloanissuedinthefirsthalfof 2017with a 5-year term is considered tobe in its infancy and is unlikely tohavedefaulted. Thismay create theperceptionofartificiallyhighreturnsandlowdefaultratesforloansissuedinrecentyears.Fortheyearsthatallloansare100%complete(defaultedorrepaid)wecanfullyreviewtheperformanceoftheplatforminthatgivenperiod.

8Formoreinformation,visitOrca’sAnalyticsService:https://platform.orcamoney.com/.

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HowtoThinkAboutOperatorHealth

Aplatformriskexists inP2P.Effectively, ifaplatformbecomes insolventorhasa largecyberbreachor fraudexists,investors’capitalisatrisk.Tomitigatethisrisk,in-depthduediligenceneedstobeconductednotjustonthequalityofthe loansoriginatedbytheplatformbutontheplatformitself.Tomitigatethisriskfurther, it’swisefor investorstodiversifyacrossmultipleP2Pplatforms.DetailedfinancialsandbackgroundinformationontheplatformdirectorscanbefoundontheOrcaAnalyticsService.

HowtoThinkAboutBorrowerSupply

P2P,atitscore,isabalancingactoflendersandborrowers;ifthereisanoversupplyofinvestorstheremaynotbeenoughborrowerstofulfilthedemand.Onactiveormanualloanselectingplatforms,investorsmayhavetowaitforloanstobecomeavailableandspecific loansmaybecompetitive.Cashsitting inanaccountwaitingfor lendingopportunitiesearningnointerestreducestheoverallreturn,andtheadvertisedratesassumecashislentimmediately.Thecostofborrowing,particularly intheconsumer lendingmarketwhereZopaoperates, isvery lowandtraditionallendersarecompetingwith theP2Pplatforms forborrowers.Thishas led to theseplatformsstruggling tomeet theinvestordemand.OntheRateSetterplatform,interestrateshavesufferedandontheZopaplatformnewretailinvestorshavebeenrefusedduetoanoversupplyofcapital.

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“P2Pisthelastandonlychoiceforriskyborrowers”

Thisiscategoricallynottrue.BorrowerstypicallyuseP2Pplatformsduetotheirsuperioruserexperience,particularlythespeedatwhichtheyreachlendingdecisions.ACentreofEconomicsandBusinessreport9commissionedbyFundingCirclereportedthat72%oftheirborrowersfoundtheexperienceofobtainingaloantobefasterthanotherprovidersthey’dconsidered.Thishelpstoexplainwhy77%ofborrowersinitiallyshoppedaroundforfinance,but94%wouldcomebacktoFundingCirclefirstinthefuture.ResearchconductedbyOrcafoundthattraditionallendershavereducedtheirlendingtoSMEs10.Theregulatorycostsforabankto lend£50,000 is thesameasthatofa£3million loan.Traditional lendersarenot lendingtothisgroupbecauseitisnolongercommerciallyviable,notbecauseoftheunderlyingriskprofileoftheborrower.

“P2Pisanewfad”

ThehistoryofP2Plendinghasbeenshortincomparisontotheconceptoflendingmoregenerally.Earlyloancontracts,includingtheconceptofinterestanduseofsecuritycanbetracedbacktopawnbrokersoperatinginAncientGreece.TheinnovationthatP2Pplatformshavedeliveredliesintheiruseoftechnology,nottheunderlingconceptoflending.Bybringinglendingonline,investorscanbenefitfromanefficientprocesswithnointermediary,whilstborrowersreceiveaquickcreditdecision.Along‘no’isincrediblyfrustratingforborrowers.ZopacreatedthefirstP2Pplatformin2005,hassinceenduredarecessionandhasnowlentmorethan£2bn.Itwasn’tuntilpost-recessionconditionsin2010whenRateSetterandFundingCirclejoinedthemarketthatthesectorbegantopickuppace.Wenowhavesufficientdataandanindustrytrackrecordtomakeinformedinvestmentdecisions.P2P,asasector,iscomingofage.

“P2Pisthesameasequitycrowdfunding”

Emergingatroughlythesametimeasequitycrowdfundingandwithfundsinitiallysourcedentirelyfromretailinvestors,or ‘the crowd’, P2P has often been considered to be “crowdfunding”. Currently, the only body referring to P2P ascrowdfundingistheFCAwhocontinuetorefertotheassetclassas‘Loan-basedCrowdfunding’.ThisisterminologythattheP2Pindustryissteeringawayfrom.Equity crowdfunding and peer-to-peer lending are fundamentally different. Equity crowdfunding involves peopleinvesting in early stage companies in exchange for equity. The businesses raising finance are often very early stage

9Formoreinformation,visithttps://static.fundingcircle.com/files/uk/information-packs/small-business-big-impact-cebr-report-315de033.pdf.10Formoreinformation,visitOrca’swebsite:https://www.orcamoney.com/blog/the-growth-of-peer-to-peer-lending.

7 THEMYTHBUSTERS

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companieslookingtoraisefinancetokickstarttheirventure.SuccessfulinvestorsonequitycrowdfundingplatformssuchasSeedrsorCrowdcubecanreapsignificantfinancialgain,however,therisksarehigh.In comparison, peer-to-peer lending involves established businesses and credit worthy individuals borrowing fundsdirectlyfromlenders.Inreturn,interestpaymentsprovideasteadystreamofincometoinvestors.TheUKequitycrowdfundingmarkethasraised£480million1cumulativelyacross6platformssinceinceptionwhiletheUKP2Pmarkethaslentmorethan£10billioncumulatively11,highlightingthedifferenceinscalebetweenthetwoassetclasses.

“OnlymillennialsinvestinP2P”

It’s a common misconception that P2P isreservedforthemillennialgeneration.Theassumptionthattechnologicallyadvancedinvestment solutions such as P2P androbo-advice are dominated by the ‘techsavvy generation’ is incorrect.Millennialsalone cannot be expected to sustaingrowthinP2Pduetothegroup’sbroadlackofaffluence.Infact,evidencebyNesta12showsthatover55%ofinvestorsare55yearsoldandover,withonly12%ofinvestorsunder30.

Whileitisquickandsimpletoinvestonline,this is not the primary reason retailinvestors are attracted to the asset class.The stable, risk-adjusted returns firstattracted enthusiastic retail investorsbeforespreadingmoremainstream.

“AninterestraterisewillkilltheP2Pindustry”

If interest rates rose topre-2008conditionswheresaverscouldyield5%fromtheirCash ISA, it’s likely that theP2Pmarketwould be impacted to some degree.Media commentator Damien Fahy ofMoneytotheMasses predicts thatinterestrateswillriseto0.5%in201813,whichisstillalongwayoffsignificantlyimpactingtheP2Psector.

11Tofinddailyupdateddata,youcanvisitOrca’sWebsite:https://www.orcamoney.com/industry.12PushingBoundaries,byNesta(2015):http://www.nesta.org.uk/sites/default/files/pushing_boundaries_0.pdf.13 For more information, visit: http://moneytothemasses.com/owning-a-home/interest-rate-forecasts/latest-interest-rate-predictions-when-will-rates-rise#article-overview.

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Ifinterestratesweretorise,thecostofborrowingandrateofreturnstolenderswouldfollowsuit.Intheory,thereturnsgeneratedbytheP2PsectorshouldriseintandembeyondtheCashISArates.It’sthespreadbetweentheinvestorrateandtheborrowerratewhichisimportant,nottheBankofEnglandbaserate.

“P2Pwillsufferduringaneconomicdownturn”

Zopadidendurethe2007/2008economiccrisisanddefaultratesdidrisefrom0.18%in2006to5.07%in2008,however,Zopalendershaveearnedreturnsinexcessof5%ineveryyearpriorto2014.If unemployment rates rose, the ability for individuals to repay their loanswould be affected, similarly, if businessinsolvency rates roseSMEdefaultswouldalso rise.Thequestion ishowbigwould the impactbeandultimatelyarelendersatriskoflosingmoney?LandbaycommissionedMIACAcadametrics(MIAC)14,anindependentassetvaluationserviceprovider,tomodelhowtheP2Pproviderwouldperforminpooreconomicconditions.TheresultsfoundthatLandbay’sexpectedlossratewouldbe0.03%innormaleconomicconditionsand0.48%inpooreconomicconditions.Theirestimatesfoundthatthereturnsearnedbyinvestorswouldfallby0.48%,butcriticallyinvestorswouldnothavelostmoney.Landbay’sresultsmaybeencouraging,however,thismaynotberepresentativeoftheoverallmarketandinvestorsshouldunderstandthattheircapitalisatrisk,particularlyduringaneconomicdownturn.P2Pagreementsdonotsitonastockexchangeand,assuch,arenotaffectedbylargeswingsintraditionalmarkets.Insimpleterms,P2Phasalowdegreeofcorrelationandit’spredictedthatP2Passetswillperformbetterthantraditionalassetsthatarelistedonanexchangeduringaneconomicdownturn.

14Formoreinformation,visitLanbay’swebsite:https://landbay.co.uk/reports.

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Peer-to-peerlendingcanofferinvestorsstrong,stableyields.OnebenefitthatisperhapsoverlookedisthediversificationthatP2Pcanoffer.Theperformanceofloansisnotcorrelatedtostockmarketvolatilitywhichcanbeparticularlyuseful inperiodsofuncertainly. In thepast, alternative credit investinghasonlybeenavailabletoinstitutionsandinthissenseP2Phasdemocratisedalternativeinvestingtothemasses.

Withanarrayof investmentproductsonthemarket -advertisingreturns ranging from3-19%- there isaspectrumofopportunitiespresentedtoinvestors.Withupside,thereisclearlydownsiderisk,andthemarketcanbecomplicated.InvestorsarenotonlyencouragedtodiversifyacrossalargenumberofloansbutalsoacrossmultipleP2Pplatforms.ThiswilldiversifyaP2Pportfolioacrossa largenumberofborrowers,P2Pplatformsandloantypes.

Onepotential solution isaggregatorplatformswhichofferamixof loanopportunities fromdifferentP2Pplatforms.Thisenablescrossplatformandcross loandiversificationwhilestilloffering thenon-correlatedattributesofdirectP2Pinvesting.TheteamatOrcaliveandbreathepeer-to-peerlending,servingbothretailinvestorsandfinancialadviserswithin-depth,independentP2Presearch.OfferinganaggregatorinvestmentplatformisanaturalevolutionforOrcaandsomethingtheteamarecurrentlyfocusedon.ThisnextphaseoftheOrcaplatformwillallowinvestorstoinvestacrossmultipleP2PplatformsfromtheOrcasitewiththeaimofincreasinginvestordiversification.Initially,theplatformwillbelaunchedtoalimitednumberofinvestors.TobeconsideredafirstuseroftheOrcainvestmentplatformpleaseemail‘[email protected]’.Thereareanumberofspacesstillavailable,however,thelistisgrowingrapidly.

Thanksforreading.IfyouhaveanycommentsonthisguidefeelfreetoemailIainNiblock,CEOofOrca,directlyat‘[email protected]’.

8 CLOSINGTHOUGHTS

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Orcaaimstodrivethemainstreamadoptionofpeer-to-peerlendingandhavedonesobyprovidingindependentdata,research,analysisandtoolstoempowerinvestorsforthepast2years.

IndependenceisacorevalueofOrca.Byprovidingindependentanalysis,insightandtools,westrivetoinstilconfidenceininvestorsresearchingP2P.IfyouwouldliketocontactanyoneatOrca,youcanfindtheteam’sdetailsbelow:

SamanthaMcBride

InvestmentDirector

Email:[email protected]

Phone:07843392103

IainNiblock,Co-Founder&CEO

Email:[email protected]:07584411622

CONTACTORCA

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Peer-to-Peer Lending Investor Guide · 2019-07-24 · Peer-to-peer lending (or “P2P”) is a...

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Transcript of Peer-to-Peer Lending Investor Guide · 2019-07-24 · Peer-to-peer lending (or “P2P”) is a...