Finance Inspire

Peer-to-Peer Lending

Report title – Month Year Peer-to-peer lending: Key insights Channel Reliance Almost 6% of all traffic to peer-to- With the Bank of England keeping interest rates at a record peer lending sites was driven by low, peer-to-peer (P2P) lending has prospered as consumers look outside of the traditional banking system in an attempt to social media. receive a better rate of return on their savings. • The pie chart below shows the key channels visited before a custom industry of peer-to-peer lending sites, for the month of The Telegraph has reported in the past decade “£2.6bn has September 2015. been lent out by 100,000 Britons in peer-to-peer loans with investors putting away around £6,000 each” matching the • 30.58% of all traffic to this industry was driven by Search Engines. typical amount held in cash ISA’s. Reliance on sites within the Banks & Financial Institutions Industry was 13.62% and just over 10% of traffic came from Social (5.86%) This Inspire used a custom industry of peer-to-peer lending and Email (4.51%). sites to gain these key insights: • Comparing channel reliance for these P2P sites vs. the Banks & 1. Establish how consumers are engaging with Financial Institutions industry shows they were more reliant on: potential competitors in your space: Almost 6% of all Search Engines (+3.89%), Business Information (+2.31%), traffic was driven by social media and 30% via Rewards & Directories (+2.16%, notably Money Saving Expert) search. and Stocks & Shares (+2.06%).

2. Which traditional finance products could be impacted Top ten industries visited before peer-to-peer lending sites by P2P? Demand for ‘peer to peer lending’ searches September 2015 peaked week ending 21st March, coinciding with ISA 1.38% season. 2.22% 2.54%

2.69% 3. What audience types and demographics might be tempted away from your products and towards P2P? 2.99%

• Established Reserves and Accumulated Wealth 3.35% Groups over-indexed for visits. 30.58% 4.51% • 55+ age group 24% more likely to visit. 5.86% • West Midlands was 38% more likely to visit.

13.62% * Note P2P sites used in this analysis: , Zopa, Rate Setter, Wellesley, Thin Cats, LendInvest, Lending Works and MarketInvoice. Source: Experian Marketing Services

Report title Experian Marketing Services | 2

Searches for peer-to-peer lending Search demand for peer to peer lending peaked the week ending 21st March 2015.

• Creating a search term portfolio of the top ‘peer to peer’ and ‘p2p’ searches to reference ‘loans’, ‘lending’, ‘investment’ etc allows us to analyse this topic in more detail.

• Four weeks ending 3rd October, ‘peer to peer lending’, ‘peer to peer lending UK’, ‘peer to peer lending bad credit sites’ and ‘P2P lending UK’ were the searches to receive the greatest share.

• The top websites to receive traffic from the portfolio for the same period were Zopa (11.27%), Rate Setter (10.42%) and MoneySavingExpert (9.41%).

• Trending the seasonality of searches, week-on-week, for this portfolio of terms highlights there was a distinct peak in search demand week ending 21st March 2015, coinciding with ISA season. In fact, at this peak the keyword ‘ISA’ appeared in 18.24% of these searches. This highlights consumers could be weighing up their options on what will give them the best return of their money.

Top ten websites receiving traffic from Week-on-Week Search Clicks from portfolio peer-to-peer lending portfolio rd Wk/e 3 October 2015 4 Wks/e 3rd October 2015 0.00080% 0.00070% 0.00060% Search 0.00050% Websites Clicks 0.00040% Zopa 11.27% 0.00030% Rate Setter 10.42% 0.00020% MoneySavingExpert.com 9.41% 0.00010% Wellesley 7.48% 0.00000% Funding Circle 5.34% Telegraph - Finance News 4.25% MoneySupermarket.com 3.88%

Assetz Capital 3.47%

04/10/2014

18/10/2014

01/11/2014 15/11/2014

29/11/2014 This Is Money 2.41%

13/12/2014

27/12/2014

10/01/2015

24/01/2015

07/02/2015

21/02/2015

07/03/2015 21/03/2015

04/04/2015 Saving Stream 2.04%

18/04/2015

02/05/2015

16/05/2015

30/05/2015

13/06/2015

27/06/2015

11/07/2015

25/07/2015

08/08/2015

22/08/2015 05/09/2015

Source: Experian Marketing Services 19/09/2015 03/10/2015 Source: Experian Marketing Services

Report title Experian Marketing Services | 3 Audience FSS Household Groups Established Reserves and Accumulated Wealth more likely to visit peer-to -peer lenders than Banks and Financial Institutions.

• The spider diagram shows how the visit Share of Visits by FSS Group to Peer–to-Peer Lending sites vs. share by Financial Strategy Segment Banks & Financial Institutions (FSS) Groups differs for a custom industry 4 Wks/e 3rd October 2015 of peer-to-peer lending sites versus the Banks & Financial Institutions industry, 4 J - Established Reserves weeks ending 3rd October 2015. 18.00% N - Traditional Thrift F - Accumulated Wealth 16.00% • The FSS Group Established Reserves 14.00% were 73% more likely to visit these P2P C - Young Essentials 12.00% L - Platinum Pensions sites than the Industry. Accumulated 10.00% Wealth, who are ‘affluent families with a 8.00% high income, a sophisticated range of 6.00% investments and who readily move their I - Stretched Finances 4.00% K - Seasoned Economy money to find the best returns’ were 72% 2.00% more likely to visit. 0.00% • Established Reserves (16.72%) and B - Single Endeavours M - Sunset Security Sunset Security (16.32%) were the top two FSS Groups to send Share of Visits to P2P.

H - Balancing Budgets D - Growing Rewards

E - Family Interest G - Consolidating Assets

A - Bright Futures

Source: Experian Marketing Services

Report title Experian Marketing Services | 4 Audience 55+ over-indexed by 24% for visits to peer-to-peer lending sites versus the Banks & Financial Institutions Industry.

• The bar graph shows the age groups to send the greatest share of visits to the custom industry of peer-to-peer lending sites. Share of Visits by Age Group to Peer–to-Peer Lending sites vs.

Banks & Financial Institutions • 55+ was the top age group to over-index vs. the 4 Wks/e 3rd October 2015 industry, they were 24% more likely to visit.

+24% • This higher level of engagement with this older 45.00% demographic highlights that those nearing retirement age and more likely to consider this 40.00% type of investment to bolster their savings. 35.00% • Carrying out the same analysis but at a regional level shows that the P2P sites over-indexed for 30.00% share of visits from the West Midlands (+38%), North East (+9%) and South East (+6%) 25.00% versus the industry.

20.00%

15.00%

10.00%

5.00%

0.00% 55+ 25-34 45-54 35-44 18-24

Source: Experian Marketing Services

Report title Experian Marketing Services | 5 7 old town Experian Marketing Services Clapham 29 Broadway, New York, NY 10006 SW4experian.com/ 0JT marketingservices www.experian.co.uk/ci-support

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