While Harmoney announces an end to its peer-to-peer appetite, New Zealand’s soon to be largest P2P lender Southern Cross
Partners has announced a near 50 per cent growth in its loan book over the last year.
Southern Cross Partners CEO, Cliff Carr, said today its P2P investors are snapping up loan opportunities within minutes
of posting.
“There is no shortage of investors eager to participate”, says Carr, “Loans put on the investor platform are sold within
minutes. Even a multi-million-dollar loan can sell quickly as investors are continuously looking for a better return on
their funds than what’s on offer from mainstream banks.
“This highlights the confidence that Kiwi Investors have in seeking alternative ways of investing including peer-to-peer
with Southern Cross Partners.”
Carr says that Southern Cross Partners relatively unique P2P offering is niche and demonstrates where the future of P2P
potentially lies, being the only peer-to-peer lender in New Zealand that offers investments supported by first mortgages
over land and property.
“Kiwis are naturally familiar with property investment and there’s a lot of comfort in our investment model.
“We’re being told by our investors that due to a number of factors in the market, such as softening interest rates (in
terms of deposits), people are looking elsewhere for returns. The rates banks are offering to those with money to save
have been steadily diluted to the point where it is challenging to find a return that starts with a three.”
Carr questioned recent comments that peer-to-peer is in decline globally.
“Our model shows that the way forward for peer-to-peer is secured rather than unsecured. Our investors tell us that this
is an important factor. Risks can be minimised by the security we offer together with Southern Cross Partners assessing
and managing the loans closely – that’s our role.
“Our growth is enabling us to build a continuous pipeline of loans for our growing peer to peer investor base as well as
reviewing other exciting opportunities to expand our product range.”
For more information about P2P investing (including the risks) visit http://southerncrosspartners.co.nz or contact your investment advisor.