Consumer Lending: RateSetter

Consumer Lending: RateSetter
Rhydian Lewis, Founder & CEO, RateSetter

Lewis’s presentation focused on the process of rate setting – the mechanism by which the cost of money is determined. Launched in 2010, RateSetter has facilitated just over £800 million of lending to individuals and small businesses, of which over £400 million were processed in 2015.

Prior to online market lending platforms, consumers simply had to accept the borrowing rates banks offered them, Lewis explained. Online lending platforms changed these circumstances, giving consumers more information about their investment options.

RateSetter has played an important role in this transformation by building a platform in which the borrowing rate is set by borrowers and lenders themselves.

“We believe the idea that the rates are owned by our customer is an attractive concept,” Lewis said. “Our job is to build the market, the rules, the systems, the safeguards around the rate.”

Some institutions have begun to regard RateSetter’s benchmark rate as as a base rate for money, he added.