Commenting on the news that Metro Bank is partnering with Zopa to lend its funds on the peer-to-peer platform, David Mann, Head of Money at uSwitch.com, says: “This could be a win win – Metro Bank could benefit from the traditionally high returns peer-to-peer lending can offer and there will be more cash in the pot for borrowers. For those locked out of loans from the traditional ‘Big Four’ banks, peer-to-peer lending can offer a much needed alternative, preventing them from resorting to payday loans.
“Seeing a challenger bank invest may also allay some of the fears people have and be a green light for anyone looking to boost their savings by investing their money into peer-to-peer lending. For despondent savers allowing their money to languish in low earning savings accounts and ISAs, a return of up to 5% with these schemes could be an attractive proposition.
“Would be investors have historically been cautious of using a peer-to-peer lender, in part due to a lack of FCA regulation. Although they are now regulated by the FCA, as with all investments your capital is not protected by the FSCS and is at risk. Other saving opportunities, such as current accounts, still offer some attractive interest rates, and may prove to be the last obstacle before peer-to-peer can truly hit the mainstream.”
— ends —
Launched in September 2000, uSwitch is an online and telephone price comparison and switching service, helping consumers get a better deal on gas, electricity, broadband, TV services, mobiles and personal finance products including mortgages, credit cards, car and home insurance. Last year we saved UK consumers over £278 million on their energy bills alone.
Customers can sign up to an account that automatically monitors the energy market and notifies them when they can move to a cheaper tariff, while broadband customers can conduct a speed test to find out how fast their broadband is and identify the best deal for their postcode.
The multi award-winning 'Switching Made Simple' app allows customers to compare energy, broadband, credit card and SIM-only deals – and uSwitch also has a UK contact centre manned by energy and broadband experts. Customers can post their latest energy bills to FREEPOST USWITCH to receive a free call back and be guided through the comparison process, or they can email firstname.lastname@example.org with their postcode and usage details.
uSwitch is owned by ZPG Plc (LSE:ZPG), which operates some of the UK’s most trusted digital brands that help empower smarter property and household decisions including Zoopla, Money, PrimeLocation and SmartNewHomes. uSwitch is the proud sponsor of Britain’s Got Talent 2018.
If you would no longer like to receive our press releases please email email@example.com with 'unsubscribe'.