HomeView 2015 Media ReleasesPeer to peer lending - beware the hype

Australia’s original peer-to-peer (P2P) lenders welcome new entrants to the personal loans market but have warned consumers to beware the hype.

Australia’s original peer-to-peer (P2P) lenders welcome new entrants to the personal loans market but have warned consumers to beware the hype.

“Customer owned banks, building societies and credit unions remain the tried and tested model for matching consumers who want to borrow and lend,” said COBA CEO Mark Degotardi.

“New kids on the block in the P2P lending market like Society One and RateSetter bring the promise of competition and choice for consumers and that is always welcome,” Degotardi said.

“Consumers should always shop around and if they have a good look at the personal loans market they will see that the best value for borrowers comes from customer owned banking institutions,” Degotardi said.

Canstar’s database shows that customer owned banking institutions offer unsecured personal loans at interest rates lower than these new players and much lower than the major banks.[1]

Customer owned banking institutions dominate the top ratings in Canstar’s annual review[2] of personal loans:

  • 6 out of 6 of the 5-star ratings for the secured personal loans category were awarded to customer owned institutions;
  • 8 out of 9 of the 5-star ratings for the unsecured personal loans category were awarded to customer owned institutions; and
  • 21 of 23 of the 5-star ratings for the car loans category were awarded to customer owned institutions.

“This is teachers lending to teachers, miners lending to miners, or residents of Newcastle lending to residents of Newcastle. Across Australia our sector has 99 different institutions bringing lenders and borrowers together,” Degotardi said.

“What sets us apart from listed banks and other shareholder owned businesses, such as these new P2P players, is that we’re owned by our customers and that makes all the difference.”

For more information please contact:

Daniel McDougall, Senior Manager – Media and Communication
02 8035 8444 or 0407 637 541, This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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Media Contacts

Mick Gibb
Corporate Affairs Manager
P: +61 2 8035 8444
M: +61 423 149 494
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