Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Borrowers warned about new peer-to-peer lenders

Staff reporter 1 minute read

The Customer Owned Banking Association says the peer-to-peer lending market is open to new players, but has warned consumers to “beware the hype”.

COBA chief executive Mark Degotardi said customer-owned banks, building societies and credit unions remain the tried and tested model for matching consumers who want to borrow and lend.

“New kids on the block in the P2P lending market like Society One and RateSetter bring the promise of competition and choice for consumers, and that is always welcome,” he said.

“Consumers should always shop around, and if they have a good look at the personal loans market, they will see that the best value for borrowers comes from customer-owned banking institutions.”

According to Canstar’s annual review of personal loans, six out of the six five-star ratings for the secured personal loans category were awarded to customer-owned institutions.

Furthermore, eight out of the nine five-star ratings for the unsecured loans category were awarded to customer-owned institutions.

“What sets us apart from listed banks and other shareholder-owned businesses, such as these new P2P players, is that we’re owned by our customers, and that makes all the difference,” Mr Degotardi said.

The warning comes after The Adviser’s sister publication, Mortgage Business, reported that a new peer-to-peer lending platform, ThinCats, has seen 134 lenders and finance brokers register since its launch in December last year.

Advertisement
Advertisement

PROMOTED CONTENT


[Related: New lending model poses threat and opportunity for brokers]

Borrowers warned about new peer-to-peer lenders
default
TheAdviser logo
default

 

more from the adviser
banned NSW mortgage broker banned

An NSW mortgage broker has been banned from engaging in credit ac...

Mark Woolnough ta Mark Woolnough joins CoreLogic exec team

Former Plenti and ING executive Mark Woolnough has been appointed...

house sold Hot Property: The biggest property headlines from the week 26-30 October

The weekly round-up of the biggest news stories from across Mom...

FROM THE WEB