The Financial Conduct Authority (FCA) has fully authorised ‘Lendy – The Property Platform’, one of Europe’s largest peer-to-peer platforms.
Following a detailed end to end assessment of its business and operating model, Lendy’s secured lending model was authorised by the FCA, the UK’s financial regulator.
Lendy launched in 2012 and has to date facilitated over £400m in lending. It currently has 21,500 registered investors and will continue with its existing investments. However, now it has a new FCA-approved mandate, it will look to innovate new products and services in line with its full FCA permissions.
Liam Brooke, chief executive of Lendy Ltd, said the platform was very pleased to have been given full authorisation by the FCA. “It has been a long and sometimes challenging journey, which has involved a detailed review of our processes and policies and has helped us mature into a stronger and more robust business,” he explained. “This is a validation of our efforts to move from a young start-up to an established mainstream lender, with the ability to disrupt the banking model for the benefit of clients, and design new investment products and services.
He added that peer-to-peer lending had grown in popularity over recent years, partly as a result of high street banks becoming more and more risk averse and reining in lending following the global financial crisis in 2008.
“Investors are now seeking higher returns on their investments than are available through most traditional investment vehicles,” Brooke continued.
“Lendy’s bridging and development loans have helped to fund hundreds of property developments, including major residential conversions, and commercial and industrial property – developments that simply wouldn’t have been delivered otherwise. This kind of finance is critical to tackling the UK’s housing shortfall, with house building now at its lowest rate since the Second World War.”