Orca to Launch New Ratings Service for P2P Investing Platforms

Orca's new ratings service touches on four factors for assessing P2P lending platforms.

Orca, an independent provider of data, research and analysis for the UK’s peer-to-peer (P2P) lending market, will be launching a new multi-tiered rating service for individual P2P providers, the Orca Rating. The initiative will help address a burgeoning growth for more independent analysis and information on P2P lending, which will feature four factors to assess platforms.

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As such, the new service will be implemented in collaboration with Dublin City University’s Irish Centre for Cloud Computing and Commerce research team. Upon completion, the Orca Rating service will constitute the first such service on the market for analyzing P2P platforms.

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Four-Factor Approach

Orca Rating will address and analyze four factors of P2P platforms – performance, liquidity, operator health, and security. Traditionally, many analyzing entities have relied on consolidated or singular platform ratings – Orca’s composite of ratings will better enable advisers and investors to assess all fundamental criteria at once when comparing and grappling myriad choices of P2P lending platforms.

The Orca Rating will be powered by both qualitative and quantitative analysis as developed by the group on an ongoing basis. It will also feature a methodology constructed with the assistance of DCU, which is targeting a release of H2 2017.

According to Iain Niblock, co-founder and CEO of Orca, in a statement on the new ratings service: “Despite the recent growth of the P2P market, there is still a fundamental lack of understanding of how P2P lending works, what returns it provides, what risks are associated with it and how to mitigate them.”

“It is a complicated market to grasp, and the creation of an overarching rating would simplify the picture for investors. There is so much diversity between P2P providers however, that a single rating to compare and asses all of them is not particularly efficient. That is why we decided to create a four-category rating, to give advisers and investors a comprehensive look at what each provider offers,” he added.

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