Finally banks embrace P2P lending, as Santander gets into bed with Funding Circle

Peer-to-peer (P2P) lenders have been touted as one of the biggest threats to traditional banks, but now they’re getting into bed with them. Santander will be referring small businesses it turns down for loans to P2P platform Funding Circle, who in return will promote the bank’s current accounts and other services. MT can just feel the love.

P2P startups had made a lot of noise about how they were different to banks, who have been notoriously stingy with small business lending since the financial crisis. Indeed, Funding Circle director Ed Wray told MT in February that while P2P lending wouldn’t do […] Read more

Santander Puts It Weight Behind P2P Financing

Santander Puts It Weight Behind P2P Financing

As peer-to-peer financing networks are gaining more ground in Great Britain and the coalition government is pushing legislation that would require banks direct rejected loan applicant to alternative financial services, Santander will be the first high-street bank to officially partner with a P2P service.

Funding Circle, a peer-to-peer lending website that specializes in corporate loans, follows months of negotiation and a move by San Francisco-based Union Bank last week to sell some of its personal loans through the online marketplace Lending Club.

“Santander’s partnership with Funding Circle is a good example of how traditional and alternative finance can work together to help […] Read more