P2P 'way ahead' for lending

Paul Moore is best known as the whistleblower at the bank Hbos, which he claimed was failing four years before it collapsed and had to be bailed out by Lloyds TSB, and ultimately, the taxpayer.

Now he has linked up with the lending platform Assetz Capital as its non-executive chairman. He is a strong advocate for the sector, not least to challenge the established banking sector, which he still believes needs to change its ways, particularly in funding small and medium-sized enterprises.

'At the moment this is an area for Guernsey to get itself involved in,' said Mr Moore at the Chamber of Commerce monthly lunch.

'It is the perfect sort of business. It is going to be cross-border and if you want your share of that business you need to get the regulatory system right and inspire confidence in borrowers and investors.

'Your policymakers need to take this marketplace very seriously and get the regulatory system right.'

Assetz Capital, which started operations just last year, is the fastest-growing p2p lender in the UK and the sixth-largest in the world. It provides secured loans only to SME and property developers by acting as the link to bring together lender and borrower. It sees itself filling the gap left in the market following the credit crunch, where banks are often reluctant to provide the funding businesses need.