Retirement
Peer lending surges as investors dodge banks
Buoyed by dissatisfaction with the banks and an enduring ‘lower for longer environment’, peer-to-peer lending is proving a popular alternative for investors.
Peer lending surges as investors dodge banks
Buoyed by dissatisfaction with the banks and an enduring ‘lower for longer environment’, peer-to-peer lending is proving a popular alternative for investors.
The practice involves matching creditors with borrowers, so that investors can lend their money at an interest rate independent of the banks.
Australian P2P lender RateSetter chief executive Daniel Foggo says growing inflows show investors are fed-up with traditional lending.
“By cutting out traditional middlemen such as banks, P2P lending offers consumers and businesses a better deal, with borrowers paying less for finance and investors earning a fairer return,” Mr Foggo said.
Over the last nine months, the number of Australian investors registered on the RateSetter platform has doubled, Mr Foggo said, adding that it’s no surprise given current volatility.
“Over the last 12 months the value of the ASX200 has fallen more than 5 per cent, eroding the value of many Australians’ investment and superannuation portfolios. In addition, a recent report found that over a five-year period almost 70 per cent of Aussie fund managers couldn’t match the returns of the index and over a 12-month period, 60 per cent failed to do so. As a result, we are seeing an increase in investment amounts from retail and SMSF investors as they move money out of these underperforming asset classes,” he said.
Over the last nine months, the average amount lent to borrowers has increased by around 25 per cent, with SMSFs now lending an average of $69,566, according to RateSetter.
The SMSF market, which makes up nearly two-thirds of users, is likely to remain the core market for this type of investment, with the platform forecasting continued growth in the sector.
“We foresee a surge in inflow from SMSFs over the next nine months, especially as these investors get a final opportunity to top up their super account with up to $1.5 million, before the government’s latest super wind back takes full effect and restrictions kick in,” Mr Foggo said.
RELATED ARTICLES
Retirement Planning
Rest launches Retire Ready digital experience to empower members approaching retirement
Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled a new digital experience aimed at making retirement preparation simpler and more personalised for its members. Read more
Retirement Planning
New Framework Aims to Bridge Australia’s Financial Advice Gap
A ground-breaking framework introduced by the Actuaries Institute promises to revolutionise how Australians access financial support, potentially transforming the financial wellbeing of millionsRead more
Retirement Planning
The downsizer dividend: how Australia’s ageing shift will reshape property, finance and AI strategy
Downsizing is moving from a personal milestone to a system-level lever for Australia’s housing market. As policymakers court reforms and agents eye fresh listings, the real profit pools will accrue to ...Read more
Retirement Planning
Half of Australians financially insecure about retirement as AMP launches new initiative
In a significant move aimed at addressing the retirement concerns of Australians, AMP has unveiled the Retirement Confidence Pulse, a national barometer designed to gauge the financial confidence of ...Read more
Retirement Planning
North introduces Grow to expand Australia's financial advice footprint
In a bid to bridge the gap between the demand for financial advice and its accessibility, North, a prominent platform for superannuation and retirement in Australia, has launched an innovative ...Read more
Retirement Planning
Majority of Australians anxious about retirement as super knowledge gaps persist, report finds
A new study by Aware Super has revealed that a significant majority of Australians aged 45 and over are feeling anxious about retirement, with nearly nine in ten respondents concerned they will run ...Read more
Retirement Planning
AMP’s MyNorth Lifetime boosts financial security and retirement income
AMP has reported that its MyNorth Lifetime retirement income solution is delivering significant financial benefits to retirees, with an average uplift of 50% in total income. Read more
Retirement Planning
Retirement living sector calls for planning reforms amid declining construction confidence
The Retirement Living Council (RLC) is urging governments to streamline planning systems to boost housing supply, following a decline in confidence in age-friendly construction activity. Read more
Retirement Planning
Rest launches Retire Ready digital experience to empower members approaching retirement
Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled a new digital experience aimed at making retirement preparation simpler and more personalised for its members. Read more
Retirement Planning
New Framework Aims to Bridge Australia’s Financial Advice Gap
A ground-breaking framework introduced by the Actuaries Institute promises to revolutionise how Australians access financial support, potentially transforming the financial wellbeing of millionsRead more
Retirement Planning
The downsizer dividend: how Australia’s ageing shift will reshape property, finance and AI strategy
Downsizing is moving from a personal milestone to a system-level lever for Australia’s housing market. As policymakers court reforms and agents eye fresh listings, the real profit pools will accrue to ...Read more
Retirement Planning
Half of Australians financially insecure about retirement as AMP launches new initiative
In a significant move aimed at addressing the retirement concerns of Australians, AMP has unveiled the Retirement Confidence Pulse, a national barometer designed to gauge the financial confidence of ...Read more
Retirement Planning
North introduces Grow to expand Australia's financial advice footprint
In a bid to bridge the gap between the demand for financial advice and its accessibility, North, a prominent platform for superannuation and retirement in Australia, has launched an innovative ...Read more
Retirement Planning
Majority of Australians anxious about retirement as super knowledge gaps persist, report finds
A new study by Aware Super has revealed that a significant majority of Australians aged 45 and over are feeling anxious about retirement, with nearly nine in ten respondents concerned they will run ...Read more
Retirement Planning
AMP’s MyNorth Lifetime boosts financial security and retirement income
AMP has reported that its MyNorth Lifetime retirement income solution is delivering significant financial benefits to retirees, with an average uplift of 50% in total income. Read more
Retirement Planning
Retirement living sector calls for planning reforms amid declining construction confidence
The Retirement Living Council (RLC) is urging governments to streamline planning systems to boost housing supply, following a decline in confidence in age-friendly construction activity. Read more
