The recent Banking scandals, including Libor fixing, combined with a lack of trust and low interest rates has resulted in savers turning their backs on the high street banks.
Funding Circle have conducted a survey where they have found that 7 out of 10 Britons would rather invest with a British business than put their money in a savings deposit account – where they earn a low rate of interest.
Furthermore, Funding Circle has claims it has seen an 89% surge in people joining their P2P lending platform since the Libor-fixing scandal hit in June.
However, the FSA has warned that investing through P2P lending websites is not generally regarded as a safe place for hard-earned cash. They warned investors that crowdfunding schemes, where businesses pitch their product or concept to attract start-up capital, are complex and can be high risk.