The Times provides more detail on issues of transparency at RateSetter; reports that RateSetter made loans in partnership with Wellesley and Archover; according to The Times, RateSetter lent via these platforms, utilizing them as a source of borrowers; around GBP10 million ($13.05 million) in property development loans were lent in conjunction with Wellesley which were repaid in full in April 2016; GBP1 million ($1.31 million) in loans are still outstanding with Archover; a RateSetter spokesman reported that no new loans with these competitors are being issued. Source
Firm says the platform is the first to introduce hire purchase loans for businesses; the firm has developed the product in collaboration with former wholesale lending partner Corporate Asset Solutions who will serve as a distribution channel; RateSetter will take full security over the specified asset and the platform says its hire purchase agreements will range up to GBP750,000 ($993,000). Source
RateSetter has created a new committee to monitor and report on expected losses providing increased transparency for the firm; the committee will include RateSetter's CEO, CFO and various other directors of consumer and commercial credit risk; the committee will provide quarterly reporting on expected losses for the board of directors and also plans to publicly disclose data on its website; additionally the firm plans to enhance its performance reporting with more details on materialized and expected losses; overall, new initiatives around risk monitoring are an effort to more accurately analyze and manage risk following higher than expected losses from loans in 2014 and 2015. Source
RateSetter has added additional detail to its annual performance statistics to provide greater transparency; the additional details provide data on loan originations by lending type with a breakdown of consumer and commercial loans; for commercial lending the firm will now also disclose loans to property developers, small and medium size enterprises, and wholesale lenders; the changes were prompted by a request from the Financial Conduct Authority for greater disclosure on wholesale lending across the industry; the update from RateSetter also included a report on a defaulted loan that RateSetter has taken onto its balance sheet to protect investors. Source
RateSetter has announced new terms for its lenders which will go into effect on March 1; the new terms provide increased transparency for lending activities; they also give greater flexibility to the Provision Fund through a new stabilization period; changes made to the lender terms since October 2015 can be found here. Source
AltFi reports on recent developments affecting the marketplace lending industry; discusses challenges at RateSetter and platform changes at Zopa and Funding Circle; also notes that UK regulators may be seeking increased transparency through new regulations; argues against criticism that platforms are struggling for borrowers and shows origination volume growth since 2005. Source
RateSetter Australia was the country's first P2P lending platform for retail investors; it has now announced $100 million in funding; the firm has seen a significant increase in investment from millennial investors seeking yield alternatives to low rate savings accounts and volatile stock markets; concurrently with data on its origination milestone it also released research conducted among RateSetter's investors on millennial investing. Source
RateSetter is ending its wholesale loan program after discussions with the Financial Conduct Authority; the Financial Conduct Authority has requested P2P lenders not undertake wholesale lending which provides loan capital to other businesses and financial institutions specifically for the purpose of lending; in 2016, RateSetter reported 114,347,646 British pounds ($142,591,515) in wholesale lending. Source
Plum uses artificial intelligence to suggest and automate savings for its customers; the RateSetter Plum partnership will add a new savings option for Plum customers; through the platform customers can now choose to automate investment to a RateSetter account with an average return of approximately 4.7%. Source
RateSetter has sold non-performing debt to debt purchaser 1st Credit; source says the sale was for 2.1 million British pounds ($2.6 million) of non-performing loans originated between 2010 and 2015; the sale goes beyond the company's standard plans for default collection and coverage which include support from one of the industry's most well-known provision funds; the RateSetter Provision Fund promises to cover defaults for borrowers and is valued at approximately 22 million British pounds ($27.2 million); with expected losses of approximately 19 million British pounds ($23.5 million) it currently has a coverage ratio of 118%. Source