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Takeaways from #LenditEurope: watch while the next phase unfolds!


The weather was beautiful in London, the location was upcoming (O2 North Greenwich) and the size of the conference was ideal. The two chairs, Peter Renton (founder of Lendit) and Christine Farnish (chair of P2PFA) were both great on stage as they covered an industry that has been tainted in 2016 and that has clearly lost its hype.

I gathered lots of insights from the sessions and from talking to attendees. I share here some highlights and look forward to continuing publicly the conversations that these insights open up, on the Fintech Genome.


THE INDUSTRY NEEDS LOTS OF EDUCATION AND UNDERSTANDING: The P2PFA which was co-hosting the conference, was not the only one, to repeatedly address the issue of misunderstanding of “What is this business all about?”

Engage in this open conversation here.

A NON-STANDARDIZED MARKETPLACE (a separate post will be dedicated on this topic):

THE INDUSTRY DISAGREES ABOUT THE BUSINESS MODEL: Engage in this open conversation here. Is the business model:

RateSetter and Funding Circle, are strong advocates Against the hybrid model. The ecosystem can’t agree on One name, P2P, Market place Lending, Online Direct Lending!

NO AGENCY PROBLEM IN THE CREDIT ASSESMENT PROCESS: P2PFA commissioned report from economic research firm Oxera that focuses on consumer issues, risks towards designing an effective public policy. This is strictly based on facts and figures from the 8 members of the P2PFA which account for ¾ of the UK market. And even though, some said “please stop measuring success with origination volume”; this remains the metric for now. The Oxera report can be downloaded here. The most interesting question addressed is “Do marketplace lending platforms have the incentive to do effective credit risk assessment (since they don’t allocate their own capital but “other people’s money” and they earn the spread – which is around 4%)”? The answer is positive.

THE LENDING SECTOR DOESN’T POSE SYSTEMIC RISK: Lord Adair Turner, from the Institute for New Economic Thinking and author of the book “Between Debt and the Devil”, highlighted




“Lendit” is echoing in my head. I actually think it is a brilliant name choice for this sector because it seems to me very Agile (if you happen to disagree, engage here). Today “IT” means (to most people) lending your uninvited cash to another person or company; and earning of course, interest. Tomorrow “IT” may also mean, lending securities (much like repos or shorting). Later “IT” may grow into, lending your digital assets (much like in acting as a guarantor, effectively lending out your creditworthiness).

The conversations continue on the Fintech Genome in the Lending category. This is a snapshot of the existing ones. Engage.


Daily Fintech Advisers provides strategic consulting to organizations with business and investment interests in Fintech & operates the Fintech Genome P2P Knowledge Network.  Efi Pylarinou is a Digital Wealth Management thought leader.

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