How peer-to-peer lending can benefit UK wealth managers

Ben Shaw, CEO of High Net Worth Lending, examines the big questions for professional investors when considering P2P lending.

Peer-to-peer (P2P) lending is where either one, or a series of individuals, makes a loan to a borrower. This is a relatively new form of lending, as, traditionally, companies and individuals had to borrow from a bank or other financial institution unless they knew friends of family who would lend to them. However, what fund managers may not be aware of is that many of the new breed of peer-to-peer lending firms also accept money from institutions. I look after several institutional investors who have invested because the asset class offers good risk and because institutions are genera...