Fintech Investor Waiting Lists – Shades of Florida Real Estate Bubble?

housing bubble
I did a double take when I read this piece below, and turned to our CEO and said “does this sound like a bubble”?  He laughed and said yes.  Several years ago at the height of the last bubble, a friend & her husband invested in a new luxury real estate development in Florida, and were told that they would not be allowed back into the development a second time unless they came with a check.  And so they did, and then lost their shirts on the investment later on.  So, when I read this piece about a P2P lending platform in the UK introducing a waiting list for investors, I had a flashback to my friend and her Florida real estate experience.  In general, if there is a waiting list to invest, methinks you should walk away and take your money elsewhere. 

(Cindy Taylor/CEO)

“Zopa, the peer-to-peer lender in the U.K., has created a waiting list for investors who want to get access to the online marketplace.

According to a report, Zopa introduced the waiting list, making it apply to both institutional and individual investors. The move, noted the report, followed on the heels of its move to “platform limit,” which was introduced in December. The platform limit enables Zopa to stop taking in new investor funds when it’s taking too much time for deployment of funds from various investment accounts. The report noted Zopa is always monitoring the times, or those taken for new investor money to go to borrowers, and can halt new investments temporarily as a result.

With the wait list, the report noted Zopa is trying to give “a greater weight of emphasis on existing investors” by slowing down the addition of new customers. Zopa isn’t sure how long the waiting list will last but said it will ensure it won’t be for long…”

Read Full Article at Pymnts