If it sounds too good to be true ....

I don't know why you're uncomfortable about doing a bit of DD on a P2P/P2B business. I do it all the time especially of late as there are more and more P2P/P2B's popping up all over the place. I've asked them directly a few pertinent questions and frankly some of the waffle I've received is just that - waffle. More of a 'in your heart you know you can trust us' reply without giving me anything to judge that on. Others haven't even bothered to put fingers to keyboard. Hence I fall into the camp that welcomes FCA involvement - well in the UK at any rate. Yes, FCA membership will cost money and may have a minor impact on returns. At the same time I expect there will be more than one or two P2P/P2B's just fade away. The first thing that any potential investor will look for though will be the FCA logo.

Irrespective, if I don't feel comfortable for whatever reason then I do not lend/invest.

The central bank publishes interest rate figures and yes, the rates are normal enough for that market, at least before allowing for isePankur's added fees, which take them above it quite often, though not to a worrying degree.

So yes you're being unduly worried but no, you're not being paranoid to consider such things. Remember Madoff and many others where pros with large resources were conned. If the pros can't protect themselves you must assume that you also can't sufficiently protect yourself and diversify for protection.

Don't assume that any platform is safe. I'm aware of one that might have to pay out a large amount of money because it got key regulatory requirements wrong and more in penalties because it didn't promptly notify its regulator and start to make the proper payments when it first found the problem. No amount of diversification between borrowers on one platform can protect you from that sort of thing where a large percentage of all loans may be affected by a shared error. I'm not at present willing to say more about this specific case, so please don't ask.