THIS is the year that the peer-to-peer lending sector will move into the mainstream and become the main challenger to traditional banks, says the co-founder of property platform Lendy.

However, in order to do so, Liam Brooke urged P2P firms to continue to build on best practice by undertaking rigorous due diligence and providing excellent service.

“At Lendy we believe that 2017 will be the year that the P2P lending sector finally matures and grasps the opportunity to take on more traditional lenders,” said Brooke.

“It’s vitally important to ensure that every P2P and crowdfunding platform is operating to the highest standards, in an open and transparent way and therefore we welcome the FCA’s focus on the P2P sector.”

Lendy, formerly known as Saving Stream until a rebrand earlier this year, was launched in 2012. It has grown substantially over the past year, doubling its registered users to around 16,000 and doubling its funds raised to £300m.

Peer2Peer Finance News reported last month that Lendy was soft-launching its inaugural bond, hoping to entice less proactive fixed-income investors by providing indirect exposure to whole loans.

“The bond is attractive for investors who want exposure to property without the hassle of regularly having to buy and sell individual property loans,” a spokesperson said at the time.