Transformation in lending and borrowing

Next weekend will mark eight years since we launched RateSetter in order to help people earn more on their money.

Over the last eight years, more than half a million customers have used RateSetter to invest or borrow. Since 2010, we have originated almost ￡3 billion of loans and in doing so we have generated over ￡110 million in returns for RateSetter investors - a unique feat because no individual RateSetter investor has lost a penny to date. This achievement is thanks to our Provision Fund which has the effect of very efficiently diversifying each investor’s risk across the portfolio of loans and also provides a buffer against bad debt.

While, of course, we recognise that past performance is not a guarantee for the future, this is a track record that indicates an investment product that can fill the wide gap between the safety but low returns of cash and the volatility of shares.

Below is a presentation I gave a few weeks ago, using the case study of lending and borrowing to show how advances in technology along with financial innovation are transforming financial services for the better and delivering greater value for customers. I hope you find it interesting.