Post by ruralres66 on May 11, 2017 17:39:00 GMT
uk.businessinsider.com/uk-alt-lender-ratesetter-is-making-moves-2017-5
First, the firm is acquiring and rebranding two specialist motor finance companies, Vehicle Stocking Limited (VSL) and Vehicle Credit Limited (VCL), which were previously its partners.
In addition, RateSetter has altered the nature of its relationship with existing partner George Banco, an online lending platform catering to people with poor or no credit history, most of whom need to be backed up by a guarantor.
RateSetter will now lend directly to all three companies' customer bases, rather than lending to the companies themselves, thereby broadening its distribution network. ( ie catering to people with poor or no credit history....)
Isn't this where SubPrime stated?
Here are the likeliest drivers underpinning RateSetter's moves:
To stay competitive. RateSetter already had an auto-loan line of its own, both through a distinct product and its personal loan offering. It is likely that RateSetter has decided to strengthen its presence in this market because one of its largest competitors, Zopa, expanded into car loans last year. Zopa is the UK's oldest alt lender, so its brand recognition and trust could pose a significant threat to RateSetter's auto loan market share.
To avoid regulatory snags. In March, the UK's Financial Conduct Authority (FCA) warned marketplace lenders against lending wholesale to other lenders, saying that companies doing so could be in breach of deposit-taking laws. In fact, the regulator explicitly told a number of UK alt lenders, including RateSetter, to cease wholesale lending. This is likely the biggest driver behind RateSetter's decision to stop lending to other companies. However, RateSetter seems to be dealing with this obligation by leveraging its existing partnerships to extend its distribution network, rather than simply severing these relationships.
Thoughts please "experts" out there........
www.telegraph.co.uk/investing/isas/peer-to-peer-savings-warning-easy-access-accounts-risk/
More doom & gloom in the news!
First, the firm is acquiring and rebranding two specialist motor finance companies, Vehicle Stocking Limited (VSL) and Vehicle Credit Limited (VCL), which were previously its partners.
In addition, RateSetter has altered the nature of its relationship with existing partner George Banco, an online lending platform catering to people with poor or no credit history, most of whom need to be backed up by a guarantor.
RateSetter will now lend directly to all three companies' customer bases, rather than lending to the companies themselves, thereby broadening its distribution network. ( ie catering to people with poor or no credit history....)
Isn't this where SubPrime stated?
Here are the likeliest drivers underpinning RateSetter's moves:
To stay competitive. RateSetter already had an auto-loan line of its own, both through a distinct product and its personal loan offering. It is likely that RateSetter has decided to strengthen its presence in this market because one of its largest competitors, Zopa, expanded into car loans last year. Zopa is the UK's oldest alt lender, so its brand recognition and trust could pose a significant threat to RateSetter's auto loan market share.
To avoid regulatory snags. In March, the UK's Financial Conduct Authority (FCA) warned marketplace lenders against lending wholesale to other lenders, saying that companies doing so could be in breach of deposit-taking laws. In fact, the regulator explicitly told a number of UK alt lenders, including RateSetter, to cease wholesale lending. This is likely the biggest driver behind RateSetter's decision to stop lending to other companies. However, RateSetter seems to be dealing with this obligation by leveraging its existing partnerships to extend its distribution network, rather than simply severing these relationships.
Thoughts please "experts" out there........
www.telegraph.co.uk/investing/isas/peer-to-peer-savings-warning-easy-access-accounts-risk/
More doom & gloom in the news!