RateSetter is a British peer-to-peer lending company based in Bishopsgate, London. The company is known for having introduced into peer-to-peer lending the concept of a "Provision Fund" – an internal fund which aims to help lenders manage the risk of borrower default. Launched in October 2010, by June 2018 the company had matched more than £2.5bn in loans and had over 500,000 investors and borrowers.[1]

FounderRhydian Lewis, Peter Behrens
United Kingdom
Area served
UK, Australia
ProductsFinancial services


RateSetter's holding company, Retail Money Market Ltd, was incorporated in October 2009 by Rhydian Lewis, an investment banker from Lazard, and Peter Behrens, a lawyer turned banker formerly of Royal Bank of Scotland.[2] The company was privately funded from the start by angel investors, and raised £13m in a 2017 funding round which took the total amount raised to over £40m.[3][4][5]

In July 2014, it was announced that the British Business Bank would begin lending through RateSetter to support individuals, sole traders or partnerships borrowing for business purposes.[6]

On 7 December 2015, RateSetter moved from Southwark to new offices in Bishopsgate, London.[7]

In July 2017, Paul Manduca became Chairman of RateSetter.[8][9] He is also Chairman of Prudential plc.

RateSetter Australia

RateSetter commenced operations in Australia in November 2014.[10] The Australian branch, with the office located in Sydney, is managed and majority-owned locally, and was the first peer-to-peer lending platform in the country open to retail customers.[11]

In December 2017, it was announced that over AU$200m had been lent via the platform.[12]


RateSetter is based on the principle of an exchange. Price is determined by the supply of money from lenders and demand for money from borrowers, with both sides of the market specifying the rate they will accept. The firm has three markets for lenders to participate in: Access, Plus and Max. [13]

The firm introduced to consumer finance the concept of a "Provision Fund" to reimburse lenders in the event of a late payment or default. This is a capital sum (over £29,000,000 as of June 2018),[1] generated by borrowers' payment of a "credit rate" fee based on their credit profile. As of June 2018, RateSetter claims that none of its individual investors have ever lost money.[1]

Borrowers can apply for a loan for between 6 and 60 months. The company has strict lending criteria, accepting (in 2011) between 12 and 15 per cent of borrower applications.[14]

RateSetter originates unsecured loans to individuals and secured loans to businesses and property developers.[15] Notable partners of RateSetter include giffgaff[16] and CommuterClub.[17]

RateSetter became fully regulated by the Financial Services Authority in October 2017[18][19] and launched an Innovative Finance ISA (Individual Savings Account) in February 2018.[20][21]


  1. "Data Hub". RateSetter. Retrieved 4 June 2018.
  2. Hurley, James (7 October 2010). "Ratesetter aims to tap social lending growth". The Daily Telegraph. London. Retrieved 10 September 2011.
  3. Martin, Ben (30 May 2017). "Peer-to-peer lender Ratesetter valued at £200m in latest fundraising". The Daily Telegraph. Retrieved 4 June 2018.
  4. Titcomb, James (19 September 2015). "Peer-to-peer lender Ratesetter doubles sales as it targets listing". The Daily Telegraph. Retrieved 3 November 2015.
  5. Hazlehurst, Jeremy (9 October 2013). "New Generation Moneylenders". Management Today. Retrieved 10 September 2011.
  6. Vicki Owen (13 July 2014). "Government-owned British Business Bank to begin lending £10m through peer-to-peer lender RateSetter". This is Money.
  7. Lucy Bott. "We are moving". RateSetter Blog. Retrieved 7 December 2015.
  8. Oscar Williams-Grut. "Fintech lender RateSetter lands FTSE 100 heavyweight as new chairman". Business Insider. Retrieved 4 June 2018.
  9. Elizabeth Pfeuti. "Ex-Deutsche funds chief joins Woodford-backed fintech". Financial News. Retrieved 4 June 2018.
  10. Shaun Drummond. "RateSetter targets Australian 'savers' with new lending website". The Sydney Morning Herald. Retrieved 11 November 2014.
  11. "About us - RateSetter Australia". www.ratesetter.com.au. Retrieved 4 April 2017.
  12. "RateSetter passes $200m | RateSetter Australia". www.ratesetter.com.au. Retrieved 26 January 2018.
  13. "Everyday Investing". RateSetter. Retrieved 15 October 2019.
  14. "Small but mighty: Online lending's growth market". The Scotsman. 19 June 2011. Retrieved 10 September 2011.
  15. "Investing with us". RateSetter. Retrieved 4 June 2018.
  16. "Peer to Peer Finance | giffgaff". www.giffgaff.com. Retrieved 4 April 2017.
  17. "About Us - CommuterClub". CommuterClub. Retrieved 4 April 2017.
  18. Lynsey Barber. "Woodford-backed Ratesetter's the last of the big peer-to-peer lenders to get authorisation from the City watchdog the FCA". City AM. Retrieved 4 June 2018.
  19. staff. "UK peer-to-peer lender RateSetter receives FCA regulatory OK". Reuters. Retrieved 4 June 2018.
  20. Lee Boyce. "Savers offered inflation-beating account - but cash in this 'flexible' Isa that pays more than 4% interest over one year is not protected". This is Money. Retrieved 4 June 2018.
  21. Paloma Kubiak. "RateSetter launches ISA paying up to 6%". Your Money. Retrieved 4 June 2018.
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