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P2P lender reaches $1 million milestone

Australia’s only peer-to-peer (P2P) lending platform available to retail investors, RateSetter, has announced its lenders have earned over $1 million in interest from loans facilitated since its launch.

Reaching $1 million in interest earned was a significant milestone for RateSetter and demonstrated the enthusiasm with which Australian investors were embracing the innovative P2P offering and reaping the rewards, RateSetter chief executive Daniel Foggo said today.

“This milestone shows just how quickly the sharing economy is reshaping finance in Australia,” Foggo said.

“The $1 million earned by our lenders would’ve previously been destined for a bank’s profit pool, but by connecting investors and borrowers together, both groups get to share in the benefits and get a better deal.

“Fundamentally, this is the start of the democratisation of finance.

“We are providing everyday Australians with access to a previously inaccessible asset class and they are starting to displace the traditional institutions.”

The RateSetter platform has experienced strong growth in lender numbers, increasing 65 per cent in the past six months.

Growth was especially strong with SMSF investors, who have now funded almost 15 per cent of loans outstanding.

RateSetter lenders represent a broad cross-section of the Australian investing public, with the age of lenders ranging from 18 to 92, and investments on the platform ranging from $10 to several million dollars.

The average RateSetter investor is 38, with older investors typically investing more than younger investors.

The average amount invested is $11,488.

“With our rapid growth, our exceptional credit performance and the continual growth in our Provision Fund, we believe we are providing Australians an attractive alternative to traditional investment options,” Foggo said.

The Provision Fund held more than $1.4 million and was one of the key reasons driving investor interest, he added.

“We think that as public awareness of P2P lending increases, features such as our Provision Fund will help to attract a broader segment of the Australian investing community to RateSetter,” he said.

RateSetter lenders have funded over $35 million in loans on the platform, representing more than 2000 creditworthy borrowers borrowing to buy new cars, renovate their homes, get married and consolidate expensive credit card debt at rates significantly lower than that offered by traditional lenders.

RateSetter was launched in 2010.

Its Australian operation was established in 2012.

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