aju
Member of DD Central
Posts: 3,484
Likes: 917
|
Post by aju on Dec 7, 2021 6:59:43 GMT
Just seen email from Zopa, p2p is closing at zopa and they are concentrating on the bank side.
Is the end of p2p in sight?
|
|
jcb208
Member of DD Central
Posts: 819
Likes: 602
|
Post by jcb208 on Dec 7, 2021 7:10:48 GMT
Yep another one closing, at least the loan book is being repaid in full. they are right with this part of the statement
Sadly, over the last few years, customer trust in P2P investing has been damaged by a small number of businesses whose approach led to material losses for customers investing in those platforms
|
|
upland
Member of DD Central
Posts: 478
Likes: 175
|
Post by upland on Dec 7, 2021 7:31:30 GMT
I suppose that we knew this , they have been only managing re-investing about a quarter of mine and one can only remove it all. They are just using our funds to transition their business. Sad to see Z go though as I have had an account for 10 years. I wish LW would repatriate funds too as it will save the uncertainty.
|
|
|
Post by barnsleybiker on Dec 7, 2021 7:34:14 GMT
Another P-P becomes a bank then decides to bin the folk who helped build it so it can keep the profits itself. Ratesetter did it, now zopa have done it to me. Yes it feels personal! Pah!
|
|
upland
Member of DD Central
Posts: 478
Likes: 175
|
Post by upland on Dec 7, 2021 7:38:03 GMT
Another P-P becomes a bank then decides to bin the folk who helped build it so it can keep the profits itself. Ratesetter did it, now zopa have done it to me. Yes it feels personal! Pah! I agree , some of the p2p firms have used their faithful investors to get to better things. I know its just business but it does irritate. I wish that I had been a bit more mercenary.
|
|
|
Post by mfaxford on Dec 7, 2021 8:00:30 GMT
Just seen email from Zopa, p2p is closing at zopa and they are concentrating on the bank side. Is the end of p2p in sight? I think several of us could see this was likely to happen sooner or later, rate that funds have been re-invested seems to have been dropping with the queue lengths growing. I'd guess that their returns on the banking side of things are much better that from the P2P side. My guess is that it's the end of mainstream unsecured P2P lending. There's possibly a business for smaller or more specialised lending (Property, Pawn etc) although if there's less scope for them to grow that might mean a greater risk of platform failure.
|
|
Greenwood2
Member of DD Central
Posts: 4,241
Likes: 2,686
|
Post by Greenwood2 on Dec 7, 2021 8:34:59 GMT
Yep another one closing, at least the loan book is being repaid in full. they are right with this part of the statement Sadly, over the last few years, customer trust in P2P investing has been damaged by a small number of businesses whose approach led to material losses for customers investing in those platformsBut Zopa is not short of lender funds, there are huge queues to lend, they have just been choosing to lend Zopa bank funds in preference to Lender funds and now they want it all. At least all funds will be returned fairly swiftly.
|
|
aju
Member of DD Central
Posts: 3,484
Likes: 917
|
Post by aju on Dec 7, 2021 8:55:10 GMT
Yep another one closing, at least the loan book is being repaid in full. they are right with this part of the statement Sadly, over the last few years, customer trust in P2P investing has been damaged by a small number of businesses whose approach led to material losses for customers investing in those platformsBut Zopa is not short of lender funds, there are huge queues to lend, they have just been choosing to lend Zopa bank funds in preference to Lender funds and now they want it all. At least all funds will be returned fairly swiftly. Be interesting to see how they fair when rates start going up we have quite a bit to invest but holding on at present. Wonder what they will do with defaults we have quite a few! Lets see if they have a fire sale of defaults soon......
|
|
Greenwood2
Member of DD Central
Posts: 4,241
Likes: 2,686
|
Post by Greenwood2 on Dec 7, 2021 9:04:53 GMT
But Zopa is not short of lender funds, there are huge queues to lend, they have just been choosing to lend Zopa bank funds in preference to Lender funds and now they want it all. At least all funds will be returned fairly swiftly. Be interesting to see how they fair when rates start going up we have quite a bit to invest but holding on at present. Wonder what they will do with defaults we have quite a few! It says ALL loans will be acquired at face value including in arrears and defaulted.
|
|
aju
Member of DD Central
Posts: 3,484
Likes: 917
|
Post by aju on Dec 7, 2021 9:07:22 GMT
Be interesting to see how they fair when rates start going up we have quite a bit to invest but holding on at present. Wonder what they will do with defaults we have quite a few! It says ALL loans will be acquired at face value including in arrears and defaulted. Oops we crossed paths there, my point was the might be having a default sale before the end of jan!
|
|
|
Post by gricehead on Dec 7, 2021 9:15:35 GMT
Well, I guess that will be me completely out of P2P after 14.5 years (Zopa, Ratesetter, Funding Circle).
It's been fun, then not fun, then painful, then fun again, then painful again.
I think I escaped relatively unscathed, though.
|
|
|
Post by fuzzyiceberg on Dec 7, 2021 9:47:37 GMT
FAQs make clear they will be aquiring defaulted loans for £0 and there will not be another sale. They say they believe the losses to investors of not having the dafulted loans sold at value will be outweighed by Zopa acquiring late loans at face value. What is not clear (to me anyway) is whether they will be dafaulting more loans between now and 31st January or not.
The writing has been on the wall for some time now and this was predicted, although I thought they would simply stop new investments and let the loans run off. This is definitely 'cleaner', although it robs us of a c4% return on our existing loans over their remaining life, so lets be clear Zopa are not really doing us a favour.
This is the end of the road for P2P for me - I am not interested in the remaining participants. It was fun at the beginning when we could pick loans etc, much less so in recent years. I think the lesson is that private equity and big money is not going to allow small punters to make decent returns which they can take for themselves. I wish Zopa bank well, but fail to see what competitive edge they have over many other such outfits: maybe the Zopa 'name' and loan servicing infrastructure is worth something.
|
|
ashtondav
Member of DD Central
Posts: 1,805
Likes: 1,087
|
Post by ashtondav on Dec 7, 2021 10:19:01 GMT
My money is on Assetzcapital being the next one.
i’m now In loanpad, prop-lend and unbolted but would like less exposure to property and a larger company.
Been with Zopa since 2005 when it was quite funky, and I still have some early adopter share options somewhere in case they IPO!
|
|
upland
Member of DD Central
Posts: 478
Likes: 175
|
Post by upland on Dec 7, 2021 10:51:48 GMT
My money is on Assetzcapital being the next one. That would be sad but loans from them have been thin on the ground for a long time now. Would you know if they use a lot on institutional money now and do not need us any more ?
|
|
|
Post by peertopier on Dec 7, 2021 11:24:43 GMT
I've been winding Zopa down for the last two years anyway by not reinvesting anything. This just speeds that up for me.
|
|