RateSetter is exploring a potential merger or sale - Business Insider

a new service last year granting financial advisors access to RateSetter's portal to advise their clients on P2P investments, which bypasses the new rules, as they don't apply to those that have received regulated financial advice, thus allowing retail investors to pour more money into its platform.

The coronavirus pandemic is putting further strain on the P2P lending industry. P2P platforms are seen as mid- to high-risk investments, and many investors are likely to flock to safer investment or savings options amid a global market downturn. an increase in investors looking to release their money from the platform, while more borrowers were requesting loans — which could potentially lead to a gap in supply and demand.

In this uncertain environment, we will likely see some smaller P2P lenders collapse and bigger players look for mergers or sales — but they might not be successful. As borrowers become riskier amid the coronavirus crisis due to reduced cash flow and looming layoffs, investments into P2P platforms will also become scarcer.

Those that have partly focused on securing large institutional investments will likely be better off during this time, as they will be able to continue offering loans to borrowers with their existing funds, while those with fewer such reserves will probably struggle more, and will likely be forced to fold. Additionally, some bigger players may have to merge their businesses in order to stay afloat during this time, leading more P2P lenders to seek out similar options as RateSetter.

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