Lessons to learn from "Enhancing the Lending Works Shield"
Feb 4, 2020 10:49:15 GMT
aju and skidrow like this
Post by dan1 on Feb 4, 2020 10:49:15 GMT
I'm still undecided regarding the long term impact on LendingWorks of their late November announcement and subsequent implementation this year. I guess it'll take six months to a year (particularly with the move to quarterly reporting) to see whether they can reverse the state of the Shield and retain sufficient investor confidence to progress over the longer term.
The main reason for posting is to raise this with both RateSetter and their investors. I hope RateSetter are not deep in their silo with their fingers in their ears but considering how they'd handle such an event themselves. I hope the situation at LW recovers if not from a LW perspective but because it should reduce the probability of RS just shutting up shop one day without warning. From an investor perspective, I wonder if the LW news has had a deeper impact on RS than, say, the recent Times article? I doubt it given the reach of RS is far beyond that of LW. Perhaps RS are unconcerned with recent spikes given they know a wall of ISA cash is to come shortly especially considering the reduction to GR - are they actively discouraging retail investors and replacing them with institutional and the recently announced move into the adviser space (https://financialadvisers.ratesetter.com/)?
LendingWorks: 6,842 investors, £93.8m under management
RateSetter: 84,673 investors, £860.9m under management
The backlash if RS were to do as per LW would be 10x as bad. It's inevitable that LW will move to the main P2X Sites board further increasing the awareness among our small readership.
Yikes!
The main reason for posting is to raise this with both RateSetter and their investors. I hope RateSetter are not deep in their silo with their fingers in their ears but considering how they'd handle such an event themselves. I hope the situation at LW recovers if not from a LW perspective but because it should reduce the probability of RS just shutting up shop one day without warning. From an investor perspective, I wonder if the LW news has had a deeper impact on RS than, say, the recent Times article? I doubt it given the reach of RS is far beyond that of LW. Perhaps RS are unconcerned with recent spikes given they know a wall of ISA cash is to come shortly especially considering the reduction to GR - are they actively discouraging retail investors and replacing them with institutional and the recently announced move into the adviser space (https://financialadvisers.ratesetter.com/)?
LendingWorks: 6,842 investors, £93.8m under management
RateSetter: 84,673 investors, £860.9m under management
The backlash if RS were to do as per LW would be 10x as bad. It's inevitable that LW will move to the main P2X Sites board further increasing the awareness among our small readership.
Yikes!
