Accidents happen

  • brokenegg.jpgAccidents happen. However, when it comes to Alternative Finance, it seems the massed ranks of the financial media have almost been willing a catastrophe to spoil the happy scene.

    This past month has seen their dreams come true. Sweden’s TrustBuddy, the world’s first listed P2P platform, reported financial irregularities so serious that it had to call a halt to operations and the share price was suspended. A few days prior to that – and after much rumour in the market – we heard that Trillion Fund had closed its books on new green energy loans following cutbacks in Government incentives. We’ve also seen 30 platforms withdraw from the regulation process (for all the right reasons, let it be said).

    Certain newspapers have seized the opportunity to crow about these events and even to congratulate themselves on their predictions having come true. But what have these events really proved?

    In my opinion, they have simply reminded us of what we knew all along – that while perfection may be something we should all strive for, it is an unrealistic expectation in a budding and rapidly-evolving market. There were always going to be casualties.

    The danger is that a media that has so far been very supportive of alternative finance, could just as easily put off new borrowers and investors by focussing in on the innevitable bumps in the road.

    Let us remember, this is a market that is so revolutionary and refreshing that, after only a few short years, it has brought about radical and beneficial change to the world’s financial landscape. By harnessing the power of ‘the crowd’, funds have been made available to deserving SMEs while, on the flip side, ordinary investors have been offered decent returns on their money in return for a modicum of extra risk. Is that so bad?

    The Alternative Finance sector has no reason to apologise for anything, least of all for being successful. Time will sort the wheat from the chaff, but, for now, the industry should keep itself and the media focused on all the things it does brilliantly well: innovation, transparency, risk management and, yes, regulation.

    As Harriett Baldwin MP, Economic Secretary, said in her address at Lendit Europe in the week: ‘You have the tools, you have the customers, you have the regulation and you have a Government who is keen to encourage competition’.

    There is no reason to be anything other than proud and confident.

Related articles

  • Read More

    Bank Referral Scheme - is 3% success, success?

    We suspected that the Bank Referral Scheme was going to be a slow starter when, five months ago, The Marketing Eye asked the Treasury’s Press Office how it was getting on. Despite the fact that no...

  • Read More

    Peer-to-peer lenders should not fear APRs

    Following the Competition and Markets Authority's (CMA) announcement that the new pricing rules on business loans will not apply to peer-to-peer lenders, some are heaving a hefty sigh of relief,...

  • Read More

    Peer-to-Peer lending passes £10 billion mark

    Peer-to-peer lending has reached a significant milestone since Zopa launched the world’s first P2P platform in 2005. Over £10 billion has been cumulatively lent across 23 UK P2P platforms....

  • Read More

    Peer to Peer featured in Queen's birthday honours

    Good to hear that the pre-eminent pioneers of P2P lending in the UK are receiving formal recognition for their outstanding achievements. Described an a ‘Peer to Peer and Financial Inclusion...

  • Read More

    New Fintech Collaboration: Xero + Liberis

    Liberis, the card based finance provider, has announced an integration with Xero, the UK's leading online accounting software, to improve small businesses’ access to capital and credit....

  • Read More

    Consumer debt rises while businesses save

    Soaring levels of consumer debt are evidently causing the Bank of England, the Government and others in authority some sleepless nights. According to a recent report in The Guardian, the number of...

  • Read More

    Liberis and Sage launch Sage Pay Business Finance

    Sage Pay has teamed up with alternative business finance provider, Liberis,to give Sage customers access to flexible financing for the first time....

  • Read More

    ArchOver receives FCA authorization

    ArchOver, one of The Marketing Eye’s longest standing clients in the alternative finance sector, has been granted full authorisation by the Financial Conduct Authority (FCA). The news represents a...

  • Read More

    Australian Budget sets scene for FinTech growth

    The latest Budget statement from ‘down under’, on May 9, reaffirmed the Australian Government’s intention to turn the continent into a global fintech centre....

  • Read More

    FinTech as a force for good

    Kids, they say, grow up quickly and nowhere is this more true than in FinTech. Barely five years ago, the phrase wasn’t even invented. Now it is the collective noun for billion dollar enterprises,...

Take the first step

To find out more about how we can help you grow faster, please get in touch. We'd like to hear from you.  Or try our instant marketing healthcheck, it's free!

Quick Contact

Quick contact

Close

Contact us

T 01825 765617

E hello@themarketingeye.com

Our offices

Full details of our offices in London and Uckfield more

Request a call

Close