Royal Bank of Scotland is set to enter the peer-to-peer lending market in the latest sign that alternative finance is gaining traction by moving into the mainstream. The high street bank is planning to pilot an online peer-to-peer platform before the end of the year in a tie-up with a third party operator. The move is part of a broader strategy to work with alternative finance providers as a way to support lending to smaller businesses. The platform is expected to provide funding for SMEs that might have had loan applications rejected by a bank – a situation that escalated following the financial crisis.