Money Saving Expert Lends Approval to Peer-to-Peer Industry
Financial guru Martin Lewis, author, journalist and brains behind the multiple award-winning website MoneySavingExpert.com has lent his support to the thriving peer-to-peer lending industry. He’s spent the last 12 months trying out some of the biggest players in the market such as Zopa, Ratesetter and Funding Circle, and by doing so demonstrating to consumers the fantastic interest rates they can enjoy if they move away from the banks. Lewis averaged out around 5% or so, which was more or less what the firms promised.
Making it clear that peer-to-peer falls somewhere between investing and savings, Lewis doesn’t shy away from the fact that there is risk involved, and that some effort is needed for people to ensure they’re getting the best deal. But after a profitable year where he came out considerably better off than had he kept his money in the bank, the founder of one of the most trusted sites on the internet seems to now be a firm believer.
Lewis, whose website is known for its probity, lays out the key points for those as yet uninitiated or undecided, including a summary of how the lending schemes work; what rates and fees might be expected by the average investor, and tips on how to mitigate risk.
He also stresses the lengths companies go to when credit checking borrowers, and what measures they have in place to protect both lenders and savers. All told, this is a great result for the peer-to-peer lending industry – Martin Lewis is one of the most respected voices on finance to be found, and MoneySavingExpert is used and trusted by millions of users, so for him to get behind the industry like this will hopefully mean many more people will get involved and see the benefits for themselves.
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