Peer-to-peer lender Archover has joined a trade body, and its choice has surprised some crowdfunding platforms. Which way did they go? In an ambitious and unprecedented direction.
UK crowdfunding and alternative finance companies have two trade bodies. The United Kingdom Crowdfunding Association (UKCFA, but also shortened to UK Crowdfunding) embraces equity, lending, bonds, mutuals and reward crowdfunding models, as well as associates. The peer-to-Peer Finance Association (P2FA) represents peer-to-peer lenders only.
Archover are eligible to join either or both, but have chosen instead to join the Asset Based Finance Association (ABFA). This makes sense, since Archover markets lending products that are secured on the accounts receivables ledger of companies. To make matters slightly more complicated, in the weeks since Archover joined, the ABFA has o merged into a new body called UK Finance, which is made up of six trade associations: ABFA, British Bankers’ Association, Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.
So: what's it like being a standard bearer for peer-to-peer lending in such a large and diverse grouping? CEO Angus Dent told P2P Finance News:
“We’re delighted to take our place in UK Finance as it begins its work as the voice of the finance industry, and we look forward to representing P2P on a national stage.
“As part of the association we will continue to build on our success, providing SMEs with quick, secure access to the funding they need to grow, and helping private investors make their money work for them in a challenging economic climate.”
As investment crowdfunding becomes mainstream, it may make more sense for platforms to be part of a larger community of financial providers.