Peer-to-Peer Lending Market

Peer-to-Peer Lending Market to Expand at a 48.2% CAGR during the Completion of the
Forecast Tenure 2016-2024
The global peer-to-peer (P2P) lending market is expected in a report by Transparency Market
Research (TMR) to find players following the trend of building tactical alliances to stretch their
presence in small business loan divisions. This could be evidenced by the partnership between
Prosper Marketplace, Inc. and OnDeck announced in the recent past. In order to improve its
product portfolio, Prosper Marketplace also purchased American Healthcare. Using the strategy
of collaboration with reliable investors, LendingClub Corporation is observed to target startups.
Offering innovative solutions focused on the student demographic could be another trend
observed in the market.
TMR prophesies the global P2P lending market to expand at a 48.2% CAGR during the
completion of the forecast tenure 2016-2024. The market could be worth a US$897.85 bn by
the final forecast year. By end user, small business is expected to account for a larger share of
the market while rising at a 48.8% CAGR. By region, North America showcased its dominance
over the market in the recent years.
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Simplification of Modes Used for P2P Lending Spurs Demand
Demand for P2P lending is anticipated to gain impetus in the near future due to the availability
of simplified modes such as enhanced online interfaces. Technological advancement could be
key for the growth of the world P2P lending market. Borrowers could receive instant updates
about the amount of funds present in their bank accounts and completion of the lending
process or seek funding online. Massive demand for simpler ways of getting student loans
sanctioned supported by rising population of students is expected to bode well for the market.
It could be cashed in on by vendors for gaining traction in terms of revenue share.
Today, lending and borrowing are said to have become an easier process due to the advent of
advanced technologies such as prediction software that estimates the borrower’s financial
capability to repay loans and also calculates loan amounts based on different factors.
Borrowers Turning to Banks could Pose Possible Risk to Market
The international P2P lending market could be risked by the turning away of borrowers and
finding more interest in other professional lenders including banks. There is a huge pressure on
conventional lenders as well as banks to improve their interest rates owing to the ongoing
battle of securing a larger market share. Consequently, the future of the market could be
dented due to the rise of schemes offering high interest rates on savings. Moreover, defaults in
loan repayment increasing direct risks that investors are exposed to are foreseen to hamper the
demand in the market.
However, there could be strong growth opportunities available in China and India because of
their colossal population base. Furthermore, there is a wide gap between the willingness of P2P
lending vendors to expand their business and inaccessibility to credit modes that needs to be
fulfilled. Asia Pacific could also offer lucrative prospects on the back of rising loan requirement
of SMEs in its emerging economies.

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