# Why lead investment is critical to the future of P2P finance  Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-07-21 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: UK P2P Lending: Ensuring Growth Amidst Brexit Uncertainty Meta Description: Discover how Kuflink is leading the way in P2P lending by ensuring investor security and confidence in the face of Brexit uncertainties. URL: https://financedigest.com/why-lead-investment-is-critical-to-the-future-of-p2p-financehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/20-1736843674928-compressed.jpg) **Tarlochan Garcha**, CEO, Kuflink There’s no denying the significance of peer-to-peer lending (P2P) as a disruptive force revolutionising the traditional practices that underpin the UK’s financial landscape. One only needs to look at the growth of the market over the past five years to understand the impact it is having on businesses, investors and consumers – UK P2P lending is anticipated to grow at a 45% five-year compound annual growth rate, reaching [£16 billion](https://www.businessinsider.com/the-uk-p2p-lending-report-2016-7#J9I5wa4jIlJe4rBU.99) by 2020. This is impressive given the volume of loans originated by UK P2P lenders in 2015 was [£2.4 billion](https://www.businessinsider.com/the-uk-p2p-lending-report-2016-7#J9I5wa4jIlJe4rBU.99). ![Tarlochan Garcha](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/20-1736843674928-compressed.jpg) Tarlochan Garcha Such an unprecedented [rate of accelerated growth](https://www.financedigest.com/food-grade-phosphates-market-regional-industry-segmentation-analysis-by-production-consumption-revenue-and-growth-rate-by-2027.html "Food Grade Phosphates Market Regional Industry Segmentation, Analysis by Production, Consumption, Revenue and Growth Rate by 2027") begs the question – how can the industry maintain this momentum? To answer this question, it is important to understand just how investors are planning to incorporate P2P [investment into their future](https://www.financedigest.com/classic-car-insurance-broker-launches-future-classic-investment-guide.html "Classic car insurance broker launches Future Classic investment guide") financial strategies, and determine what the industry can do to ensure a robust and dynamic UK alternative finance market for years to come. Perhaps the most pressing topic on every UK investor’s mind is the potential impact of Brexit on the UK economy, private sector growth and their [investment portfolio](https://www.financedigest.com/three-fundamental-tips-to-enhance-your-investment-portfolio-performance.html "Three fundamental tips to enhance your investment portfolio performance"). Britain has entered a [period of significant transition as it prepares to forge a new future](https://www.financedigest.com/automotive-coolant-aftermarket-is-projected-to-exhibit-a-cagr-of-4-0-through-the-forecast-period-2020-2030-future-market-insights.html "Automotive coolant aftermarket is projected to exhibit a CAGR of 4.0% through the forecast period 2020-2030 – Future Market Insights") independent of the European Union (EU). Following the snap General Election and the appointment of a minority Conservative government charged with leading Brexit negotiations, the unfolding two-year negotiation period will inevitably affect how [investors manage](https://www.financedigest.com/activist-investor-elliott-management-takes-stake-in-salesforce-sources.html "Activist investor Elliott Management takes stake in Salesforce -sources") their financial strategies. [Research](http://www.kuflink.co.uk/wp-content/uploads/2017/05/Kuflink-Peer-to-property-report-.pdf) by Kuflink recently revealed that over a third (34%) of investors believe that Brexit has already impacted their investment plans more than any other political event in their lifetime. Moreover, nearly two-fifths (38%) of investors are currently favouring safe-haven [investment classes such as property](https://www.financedigest.com/is-property-flipping-the-right-investment-for-you.html "Is Property Flipping the Right Investment for You?") at this present time. These figures should not set alarm bells ringing;however, it reveals an [investor population that is slightly more hesitant in their financial planning](https://www.financedigest.com/german-investor-kuehne-does-not-plan-to-further-boost-lufthansa-stake-faz.html "German investor Kuehne does not plan to further boost Lufthansa stake – FAZ") in light of contemporary political events. So what can the industry do to ensure that [P2P lending](https://www.financedigest.com/peer-to-peer-lending-how-to-use-p2p-lending-for-loans-and-investments.html "Peer-to-Peer Lending: How to Use P2P Lending for Loans and Investments") remains at the forefront of investors’ minds? To catalyse future movement, P2P platforms should not rest on their laurels. Instead, they must look to exciting new models that appeal to the sentiments of investors during this unfolding period of change – the platforms themselves adopting the role of the [lead investor](https://www.financedigest.com/volkswagen-investors-question-plan-for-ceo-to-lead-porsche-listing.html "Volkswagen investors question plan for CEO to lead Porsche listing") is a standout example of this. By acting as the lead investor and ensuring they have their own‘skin in the game’, the platform can [instil confidence](https://www.financedigest.com/instilling-customer-confidence-in-the-pandemic-era.html "Instilling customer confidence in the pandemic era") and movement from private investors. This is something Kuflink has embraced by investing a lead 20% [stake on all deals made on our platform, meaning that in the unlikely event that a borrower was to default, Kuflink would lose its stake before any investors](https://www.financedigest.com/schroders-in-talks-to-buy-stake-in-green-investor-greencoat.html "Schroders in talks to buy stake in green investor Greencoat") are affected – this, in turn, provides investors with the security and reassurance to confidently invest. Looking to the future, I have no doubt that the UK will remain at the forefront of P2P innovation. Nevertheless, the existing strengths which allowed for P2P platforms to responsively cater to the changing [demands of the market](https://www.financedigest.com/chest-drainage-catheters-market-demand-and-competitive-analysis-by-leading-manufacturers.html "Chest Drainage Catheters Market Demand and Competitive Analysis by Leading Manufacturers") cannot be overlooked. The [industry must](https://www.financedigest.com/why-the-industry-must-simplify-cybersecurity.html "WHY THE INDUSTRY MUST SIMPLIFY CYBERSECURITY") embrace its versatile qualities and willingly look to new models that encourage deal flow and maintain the momentum required for P2P to prosper over the coming years. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---