Peer-to-peer data service launched

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Research and analysis firm Orca is extending its services to peer-to-peer investments.

The P2P market grew 40 per cent in 2016, but Orca says there has been no almost no uptake by financial advisers and hopes its new service will allow them to perform proper due-diligence and benchmark P2P against traditional asset classes.

The service, which will cover 90 per cent of the UK market, will provide data on interest rates, bad debt rates, default rates and platforms’ financial standing.

Chief executive of Orca Iain Niblock says the provision of independent research is critical to P2P reaching its full potential. 

“Although P2P investments offer stable, predictable risk-adjusted returns and great diversification for investors, there has been virtually no uptake since financial advisers were permitted to suggest their clients consider P2P products last year.

“This is because the risks are often relatively misunderstood, and investors and financial advisers alike do not have the tools and information to feel confident about P2P investments.”

The service will be free to advisers and investors until September 2017.