Despite a turbulent year in many investment markets, Growth Street’s peer-to-peer investment platform has delivered improved returns to investors during 2018.
The effective rate for Growth Street investors has averaged 5.0% p.a. through 2018 to date. This represents a 16.7% increase on 2017, when investors’ effective rate was 4.3% p.a. Although past performance is not an indicator of future results, Growth Street believes that the reduction in volatility of the available effective rate may make future returns more predictable.
The improvement has come following a transformational year of growth. Growth Street is on course to increase the amount of outstanding loans on the platform by over 140% during 2018.
This growth has been delivered by making a series of changes to Growth Street’s borrower origination strategy, such as making significant investments in its credit decision-making technology, and recruiting a national sales team. Growth Street has also focused on targeting larger businesses: in 2017, the average application Growth Street received was for £130k, while in 2018 to date the average application has been £310k.
Following a collaboration with postgraduate students from University College London, Growth Street has also made improvements to its liquidity forecasting and management.
Greg Carter, Growth Street CEO, added: “I’m delighted that we have demonstrated to investors that P2P can be a rewarding asset class. We’ve continued to refine our borrower acquisition strategies and underlying credit technology, and Growth Street has seen a really successful 2018.
As the P2P sector continues to mature, we hope that 2019 will be similarly prosperous, both for our investors and the businesses benefiting from their capital.”