Peer-to-Peer

P2P embraces technology and uses an online platform to bypass the need for a traditional bank. P2P lending through a SIPP had previously been restricted due to capital requirements placed on pension providers for holding non-traditional investments, meaning SIPP providers gave the sector a wide birth. However, pension changes announced in this year’s Budget reversed this, enabling investors to take more control over their savings and access P2P lending – and the higher returns on offer.