New Peer to peer lending products 13/10/2017
Our goal at Ablrate is to give great returns with great security. We are also about liquidity. Our fundamental belief is that if we can create enough liquidity in Peer to Peer loans then this market is open to more people. More people lending is good for the market, good for borrowers, good for the Ablrate community and good for Ablrate. This is why we created the secondary market in the way that we did and why we continue to tweak and improve it.
We also want to take the technology behind the market and create other products, this is something we are working on right now.
Easy Access Peer to Peer Lending
The success of the likes of Ratesetter and others shows that there is a market for passively lending in peer to peer loans. This is either by auto lending or by auto-matching with all loans on the platform. It is something we have been looking at for some time however, there are issues:
1. We never wanted to have auto lending affecting our self-select loans. We believe in the ability of lenders to look at the fundamentals of each loan and pick and choose what to lend and whom to lend to.
2. We want to be able to offer easy access. The secondary market has shown that we can create liquidity in p2p loans on Ablrate. We aim to use the technology we have created along with the experience of our team, to create the easy flow of cash in and out of auto-matched products.
By creating such products we will be able to broaden the borrower pool, act more quickly on opportunities for smaller loans while maintaining the ultimate security of our lenders’ funds.
New Class of Products
Currently, we offer debt-based products and that is set to continue, but not all debt is created equal. Debt securities, such as bonds, convertible debt etc are classed differently from straight loans.
For us to offer such products we would need to vary the permissions we have from the FCA and we are currently working through the process to do this. We believe that by broadening the types of debt we can offer we will be able to assist our lenders in the further diversification of their debt portfolio.
Why look at new products?
Diversification is something that we are keen to promote, and diversification is possible through the secondary market. As we add more loans so more diversification is possible. Adding different products provide further diversification and different classes of debt yet more.
We aim to be able to offer all of our lenders a platform that continues to innovate in ways that benefit our whole community as well as our company and our partners.