What is Peer-to-peer Lending Market?
With growing accessibility of peer to peer lending across the globe, the global peer to peer lending market will grow at the robust growth rate across the globe. Peer-to-peer (P2P) lending is a recently introduced money lending platform or “sharing economy”. These platforms assist in connecting the money lenders and investors with borrowers without the bank acting as an intermediary.
The market study is being classified by Type (On-Premise and Cloud-Based) and major geographies with country level break-up.
Peerform, Inc. (United States), Funding Circle Limited (United Kingdom), Prosper Marketplace, Inc. (United States), Zopa Limited (United Kingdom), CommonBond Inc. (United States), Upstart Network Inc. (United States), onDeck Capital, Inc. (United States), Faircent (India), Daric Inc. (United States), Pave, Inc. (United States) and Social Finance Inc. (United States) are some of the key players profiled in the study. Additionally, the Players which are also part of the research are Avant, Inc. (United States), CircleBack Lending, Inc. (United States), LendingClub Corporation (United States), LendUp (United States), Isepankur (Estonia) and Auxmoney GmbH (Germany).
Research Analyst at AMA predicts that United States Players will contribute to the maximum growth of Global Peer-to-peer Lending market throughout the predicted period.
Segment Analysis
Analyst at AMA have segmented the market study of Global Peer-to-peer Lending market by Type, Application and Region.
On the basis of geography, the market of Peer-to-peer Lending has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Market Drivers
- Minimizes the Overall Operating Cost required for Conventional Lending
- Provides Higher Returns to the Investors as compared to Other Types of Investments
Market Trend
- Growing Accessibility of Peer to Peer Lending Across the Globe
- Introduction to Peer to Peer Lending Services with Minimized Interest Rates
Restraints
- Higher Probability of Credit Risks in P2P Lending
- Lack of Government Protection and Private Insurances
Opportunities
- Growing Adoption of Highly Automated and Artificially Intelligent P2P Lending Software
- Minimum Origination Fees and Greater Competition among the Vendors will minimize the Interest Rates
Challenges
- Lack of Awareness about the P2P Lending in Underdeveloped Regions
- Stringent Government Legislations for P2P Lenders such as Mandatory compliance with Investment Regulations
Market Leaders and some development strategies
Peer to Peer Lending Platform Providers, Banking and Financial Organization, Government Authorities, Financial Industry Associations, Private Research Institutes and Others
On 28th November 2018, the British Business Bank has committed 150 million euros for lending United Kingdom’s Small Businesses through funding circles. Under the Bank’s ENABLE Funding program, the transactions are designed to accelerate lending to small businesses and are expected to support the growth of more than 2,000 small and large firms from the United Kingdom.
On August 24, 2017, the Reserve Bank of India has issued a number of regulations as well as mandatory registrations to all the Non-Banking financial companies which carry the business of peer to peer lending platforms. For the same, RBI has developed multiple legislations according to section 45I of the Reserve Bank of India Act, 1934. Under this act, the Bank has generated Fair Practice Codes, Participant Grievance Redresses, and many others.