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Post by easteregg on Apr 29, 2016 11:20:21 GMT
I recently read an article on Moneywise (www.moneywise.co.uk/banking-saving/current-accounts/revealed-your-most-trusted-providers) where there is a category called "Best peer-to-peer platform for savers". As soon as I read that I started to cringe. The word "saving" or "savers" in my opinion should not be interchangeable with "lending" or "lenders" as I believe they are quite different. The public perceive saving to be "risk free" even though it isn't truly risk free, but lending definitely isn't risk free, even at the lowest risk end with companies such as RateSetter with their provision fund.
What do others think?
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Post by lynnanthony on Apr 29, 2016 14:20:33 GMT
I recently read an article on Moneywise (www.moneywise.co.uk/banking-saving/current-accounts/revealed-your-most-trusted-providers) where there is a category called "Best peer-to-peer platform for savers". As soon as I read that I started to cringe. The word "saving" or "savers" in my opinion should not be interchangeable with "lending" or "lenders" as I believe they are quite different. The public perceive saving to be "risk free" even though it isn't truly risk free, but lending definitely isn't risk free, even at the lowest risk end with companies such as RateSetter with their provision fund.
What do others think? Agreed. "Lending" or "Investing" seem to me to be appropriate. Of course, the ability to invest one's Individual Savings Account in P2P do rather cloud the issue. 
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am
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Post by am on Apr 29, 2016 14:37:19 GMT
You can invest your Individual Savings Account in some quite speculative equities, so P2P lending might be considered quite tame.
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jonah
Member of DD Central
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Post by jonah on Apr 30, 2016 6:46:45 GMT
You can invest your Individual Savings Account in some quite speculative equities, so P2P lending might be considered quite tame. Hence it being IFISA or iffy ISA! Aside from inflation, currency risk or the country going bang, what risks exist for cash in an Fscs account below the coverage limit?
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Post by chris on Apr 30, 2016 12:35:24 GMT
I recently read an article on Moneywise (www.moneywise.co.uk/banking-saving/current-accounts/revealed-your-most-trusted-providers) where there is a category called "Best peer-to-peer platform for savers". As soon as I read that I started to cringe. The word "saving" or "savers" in my opinion should not be interchangeable with "lending" or "lenders" as I believe they are quite different. The public perceive saving to be "risk free" even though it isn't truly risk free, but lending definitely isn't risk free, even at the lowest risk end with companies such as RateSetter with their provision fund.
What do others think? The FCA completely agree with you. Despite some of the bigger platforms trying to fight it the FCA have forced all platforms to remove references to saving, savings, or savers from the text of their websites. We are not allowed to use those terms and the FCA actively monitor our content.
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Liz
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Post by Liz on Apr 30, 2016 13:12:29 GMT
I recently read an article on Moneywise (www.moneywise.co.uk/banking-saving/current-accounts/revealed-your-most-trusted-providers) where there is a category called "Best peer-to-peer platform for savers". As soon as I read that I started to cringe. The word "saving" or "savers" in my opinion should not be interchangeable with "lending" or "lenders" as I believe they are quite different. The public perceive saving to be "risk free" even though it isn't truly risk free, but lending definitely isn't risk free, even at the lowest risk end with companies such as RateSetter with their provision fund.
What do others think? The FCA completely agree with you. Despite some of the bigger platforms trying to fight it the FCA have forced all platforms to remove references to saving, savings, or savers from the text of their websites. We are not allowed to use those terms and the FCA actively monitor our content. What about using "saving" in the platform name? Seems like an anomaly.
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Post by brianac on Apr 30, 2016 14:40:03 GMT
Funding Stream doesn't quite work does it, (Esp. the initials) nor Lending Stream. Suggestions anyone? (Poll maybe?) Brian
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Post by chris on Apr 30, 2016 16:13:35 GMT
The FCA completely agree with you. Despite some of the bigger platforms trying to fight it the FCA have forced all platforms to remove references to saving, savings, or savers from the text of their websites. We are not allowed to use those terms and the FCA actively monitor our content. What about using "saving" in the platform name? Seems like an anomaly. It is an anomaly and I'm personally surprised the FCA haven't forced them to change it yet given how strict they are elsewhere. Still they haven't been assigned a case officer yet for their full application, at least as far as I know, so they're still very early in the application stage for full authorisation. I'm sure all the platforms will be watching how this unfolds as it would be perverse if no other platform is allowed to use the word "saving" to refer to their offering yet one platform is allowed to retain it as part of their name written large at the top of every single screen.
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Post by earthbound on Apr 30, 2016 16:18:48 GMT
Funding Stream doesn't quite work does it, (Esp. the initials) nor Lending Stream. Suggestions anyone? (Poll maybe?) Brian Wonder if they would get away with SAVINSTREAM
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Post by chris on Apr 30, 2016 16:19:35 GMT
The FCA completely agree with you. Despite some of the bigger platforms trying to fight it the FCA have forced all platforms to remove references to saving, savings, or savers from the text of their websites. We are not allowed to use those terms and the FCA actively monitor our content. Hmm. So you've got remove all references to savings, or savers from the text of their websites. Isn't that going to be a bit of an issue when Saving Stream wants to launch their Innovative Finance Individual Savings Account ! Think the FCA is absolutely correct on this one ... and I don't say that very often. I agree the FCA have got this one absolutely right as it's important that the risks involved aren't downplayed or for there to be equivocation between lending money and putting it in an FSCS protected savings account. Everything we do is deemed a financial promotion and with the way we are regulated the FCA can, and have, applied retrospective penalties on businesses that didn't do the right thing with hindsight. The FCA have been relatively soft touch thus far, nudging platforms in the the right direction, but that won't last forever and shouldn't be seen as an excuse to take liberties. So we won't be launching the Special Algorithmic Very Ingenious National Growth Account any time soon.
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Post by chris on Apr 30, 2016 16:19:59 GMT
Funding Stream doesn't quite work does it, (Esp. the initials) nor Lending Stream. Suggestions anyone? (Poll maybe?) Brian Wonder if they would get away with SAVINSTREAM I know what my compliance officer would say...
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Post by meledor on Apr 30, 2016 16:37:28 GMT
I recently read an article on Moneywise (www.moneywise.co.uk/banking-saving/current-accounts/revealed-your-most-trusted-providers) where there is a category called "Best peer-to-peer platform for savers". As soon as I read that I started to cringe. The word "saving" or "savers" in my opinion should not be interchangeable with "lending" or "lenders" as I believe they are quite different. The public perceive saving to be "risk free" even though it isn't truly risk free, but lending definitely isn't risk free, even at the lowest risk end with companies such as RateSetter with their provision fund.
What do others think?
I agree but it is not just risk which differentiates saving/lending terminology but the identity of the counterparty. So I lend to a borrower but I save with a financial company. P2P is lending to a borrower, but some platforms offer savings products like the Assetz Quick Access Account and the new 30 day Access Account. The FCA might not want them to be called savings products but that does not deny their reality and they clearly cannot be classed as P2P in the normal sense of the expression.
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Liz
Member of DD Central
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Post by Liz on Apr 30, 2016 17:27:19 GMT
Funding Stream doesn't quite work does it, (Esp. the initials) nor Lending Stream. Suggestions anyone? (Poll maybe?) Brian Wonder if they would get away with SAVINSTREAM What about "save in stream". Remember dave who couldn't call his new p2p bank a bank. So "bank of dave", became "bank on dave." He somehow got that past regulators.
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Post by earthbound on Apr 30, 2016 17:35:09 GMT
Wonder if they would get away with SAVINSTREAM What about "save in stream". Remember dave who couldn't call his new p2p bank a bank. So "bank of dave", became "bank on dave." He somehow got that past regulators. Yes..good idea, i'm sure with a bit of sideways thinking they will be able to get round this without too much change, there will be some fluffy people who will talk about the spirit of the FCA laws , but i'm sure SS will not want to change their name too much, although still small, they are (amongst p2p ers) trying to build a brand as well.
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Post by brianac on Apr 30, 2016 18:37:29 GMT
Actually, considering their history, Lending Stream would do it.
(or Lendy Stream - but that does sound "awkward")
Brian
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