Since its launch 18 months ago, Lending Works has lent over £10 million to thousands of borrowers around the UK. More than half of this was lent in the first six months of 2015 alone and the number of new lenders joining the platform since January was greater than the total lending community that joined in 2014. The company is on track to lend £25 million before the end of 2015 as its growth in lending capital accelerates further.
Since January the number of Lending Works borrowers has also risen steadily month-on-month. With less than one in four of them using loans to consolidate debts, borrowers’ reasons for loans have included the purchase of engagement rings, the weddings that follow, round-the-world tickets and once-in-a-lifetime gifts for loved ones.
The increase in money lent is largely the result of a five-month campaign to introduce more pensioners to peer-to-peer lending, and the launch of a monthly income generator tool.
Noting a growing inclination among later-life lenders to make peer-to-peer lending a feature of their retirement finance plans, Lending Works has launched tools and services aimed specifically at the retirement income market. These include a special cash bonus, dedicated and named customer advisors, and an online calculator that contrasts the earning potential of Lending Works loans with annuities – all introduced at the beginning of April to coincide with the pension reforms.
Prior to 6 April, around 35% of Lending Works’ lender capital came from over 55s. However, since this date more than 70% of new lender funds have come from this particular age group.
Today, over 52% of Lending Works’ lenders are aged 55 or older, and the oldest lender is 90 years old. That said, the company continues to see growth in the number of younger lenders joining the platform, and is developing further initiatives for these markets too.
Lending Works’ Auto Income Tool was launched in April allowing lenders to draw down a regular source of income on a monthly basis from the funds that are being repaid by borrowers direct to their bank account. 76% of all new lenders since April are using Auto Income, underlining the fact that peer-to-peer lending has become more flexible than ever.
Nick Harding, founding CEO of Lending Works, commented:
“We are now lending up to £150,000 to borrowers every day – a figure that exceeds all expectations for this stage in our development, and one that only looks set to grow. This tells us that our customers like what we’re doing; but more than that, it proves how peer-to-peer lending is moving into the mainstream more than ever. The ‘alternative’ in ‘alternative finance’ is starting to look redundant.
“The sheer diversity of both our lender and borrower groups never fails to astonish me. Our lenders span an incredible 73-year age bracket, and our borrowers aren’t just taking loans to consolidate their debts, but to make life-changing purchases or pay for those once-in-a-lifetime opportunities.
“As we grow we will continue to invest in our team – the engine behind everything that Lending Works is – and I look forward to welcoming new colleagues, advisors, directors and investors over the coming months.”
