Flexible peer to peer lending & borrowing
Your money, your way

Risks & mitigation

RISK HEADING 

RISK

MITIGATION

Platform

Operator Error

Heavily automated
Operational procedures User Guide
Dual approvals 
Approvals history
Event log for all automated & manual processes
Email administration notifications
Operator error failsafe processes

Hardware Failure

Server Redundancy
Backups

Data Loss

Regular Automated Backups,
Server R1Soft CDP Backup System

Virus

Mail Foundry

Software - Bugs

There will be software bugs! 
Software has been built in-house
Fixers with technical know-how available to quickly sort out any bugs identified

Service Maintenance

Continual updates on all components

External - Hackers

Anti-hacker - Secure Live

Data or ID Theft

Anti-hacker - Secure Live
Extended SSL 
Encryption of sensitive data

Site Disaster, Incursion

Secure Site
Alternatives

Financial

 

Fraud

ID Verification
Equifax, INSIGHT & CIFAS
Own bank account verification
Own address verification
Fraud reported to CIFAS

Company Failure

LLI is the facilitator/broker 
For money lent out – the loan contracts are directly between the lender and the borrower and therefore still stand
Segregated funds in the CMA belong to the lenders

(Lenders) Borrower Default

Credit referencing and ID checking – Equifax, INSIGHT & CIFAS
Credit risk decision engine
Affordability and stability computations
Cautious credit policy - allow lending to prime and super-prime only
Lenders lend in small amounts
Limited exposure to each borrower
Compensation Scheme Fund
Publish anticipated and actual default rates 
Debt collection agency

Money Laundering

Generally low risk nature of business to Money Laundering
Automated Anti Money Laundering (AML) procedures
ID verification
Equifax & CIFAS
Own bank account verification
Own address verification
Large transaction check
High account throughput with low lending check
Passport photo ID & utility bills required
Transactions with connected persons prevented
Automatic suspension for breach
Suspicious behaviour reported to SOCA

Interest Rate Risk

For lenders: market driven, cannot avoid market movements
For borrowers: fixed rate loans, so no risk of change to borrowers

(Lenders) Money Not Earning

AutoLend lends money out according to parameters set
Holding Account interest (minimal)

Bank Failure

Lenders’ holding account funds which are not lent out are in the segregated Client Money Account (CMA) and are covered for bank failure by the Financial Services Compensation Scheme (FSCS)

(Lenders) Access to Money Lent Out

Secondary market available
One month access flexible loans (later)