Low Cost of Operations Drives P2P Lending Market
The unprecedented penetration of internet across the globe that is allowing borrowers to seek funds is propelling the global peer-to-peer lending (P2P) market. Technological advancements that are permitting users to have a smooth access to interfaces that offer quick updates is also augmenting this market. The research report published by Transparency Market Research states that the opportunity in the global P2P lending market was worth US$26.16 bn in 2015. Analysts predict that the market valuation will reach US$897.85 bn by 2024, as it expands at a significant CAGR of 48.2% from 2016 to 2024.
The growth of the global P2P market is mainly being driven by growing advancements in technology that is encouraging potential consumers and existing players to make quick decisions. The low cost of operations is also supporting the growth of this market in comparison to the growth rate of conventional money lending institutions. Additionally, increasing student population is also propelling the global P2P lending market as a majority of the students seek loans at cheaper interest rates than what is offered by traditional money lenders. However, the risk of investors losing their money due to defaults on repayment is likely to have a severe impact on the growth of this market.
Easy Access to Funds Makes P2P Lending a Popular Choice
The long-drawn process of securing loans has paved the way for global P2P lending market as it ironed out the creases of seeking funds in more ways than one. This is the single most important factor lure small businesses towards opting for P2P systems of borrowing and lending. The strict regulatory framework, complicated compliance structure, and the hefty overheads have all made small business owners, entrepreneurs, and startups lean towards P2P market. As new businesses emerge, they are likely to drive the global P2P lending market to a brighter future in the coming years.
Small Businesses to Ensure Rapid Growth of P2P Lending in Asia Pacific
As of 2015, North America held a dominant position in the P2P market, accounting for over 43% share in the overall market. The reducing interest in conventional banking, increasing dependency on online platforms, and recent history of financial crisis in this region has prompted P2P lending market to take lead cater to the unmet financial demands of the population. Meanwhile, the P2P lending market is estimated to show rapid progress in Asia Pacific. The emerging economies of China, India, Japan, and Australia will make a significant contribution to the rise of this market in Asia Pacific. The primary growth driver for this region will also be small businesses that will seek financial alternatives to fund their projects.
Some of the key players in the global P2P lending market are Daric Inc., LendingClub Corporation, CommonBond Inc., Prosper Marketplace, Inc., Upstart Network Inc., CircleBack Lending, Inc., Funding Circle Limited, Peerform, and Social Finance Inc., Pave, Inc. Research suggests have the rising number of small businesses are offer great many growth opportunities to the global P2P market to grow and flourish in the coming years.
Table of Contents
1.1. Research Scope
1.2. Market Segmentation
1.3. Research Methodology
2. Executive Summary
2.1. Peer-to-Peer Lending Market Report Snapshot
2.2. Peer-to-Peer Lending Market Revenue, 2014 – 2024 (US$ Bn) and Year-on-Year Growth (%)
3. Global Peer-to-Peer Lending Market Analysis, 2014 – 2024 (US$ Bn)
3.1. Key Market Trends
3.2. Market Dynamics
3.3. Global Peer-to-Peer Lending Market Analysis, By End User, 2014 – 2024 (US$ Bn)
3.3.1. Consumer Credit
3.3.2. Small Business
3.3.3. Student Loans
3.3.4. Real Estate
3.4. Global Peer-to-Peer Lending Market Analysis, By Business Model, 2014 – 2024 (US$ Bn)
3.4.1. Traditional P2P Model
3.4.2. Marketplace Lending Model
3.5. Competitive Landscape
3.5.1. Market Positioning of Key Players, 2014
3.5.2. Competitive Strategies Adopted by Leading Players
4. North America Peer-to-Peer Lending Market Analysis, 2014 – 2024 (US$ Bn)
4.2. North America Peer-to-Peer Lending Market Analysis, By End User, 2014 – 2024 (US$ Bn)
4.2.1. Consumer Credit
4.2.2. Small Business
4.2.3. Student Loans
4.2.4. Real Estate
4.3. North America Peer-to-Peer Lending Market Analysis, By Business Model, 2014 – 2024 (US$ Bn)
4.3.1. Traditional P2P Model
4.3.2. Marketplace Lending Model
4.4. North America Peer-to-Peer Lending Market Analysis, By Country, 2014 – 2024 (US$ Bn)
4.4.1. The U.S.
4.4.2. Rest of North America
5. Europe Peer-to-Peer Lending Market Analysis, 2014 – 2024 (US$ Bn)
5.2. Europe Peer-to-Peer Lending Market Analysis, By End User, 2014 – 2024 (US$ Bn)
5.2.1. Consumer Credit
5.2.2. Small Business
5.2.3. Student Loans
5.2.4. Real Estate
5.3. Europe Peer-to-Peer Lending Market Analysis, By Business Model, 2014 – 2024 (US$ Bn)
5.3.1. Traditional P2P Model
5.3.2. Marketplace Lending Model
5.4. Europe Peer-to-Peer Lending Market Analysis, By Country, 2014 – 2024 (US$ Bn)
5.4.1. The U.K.
5.4.4. Rest of Europe
6. Asia Pacific Peer-to-Peer Lending Market Analysis, 2014 – 2024 (US$ Bn)
6.2. Asia Pacific Peer-to-Peer Lending Market Analysis, By End User, 2014 – 2024 (US$ Bn)
6.2.1. Consumer Credit
6.2.2. Small Business
6.2.3. Student Loans
6.2.4. Real Estate
6.3. Asia Pacific Peer-to-Peer Lending Market Analysis, By Business Model, 2014 – 2024 (US$ Bn)
6.3.1. Traditional P2P Model
6.3.2. Marketplace Lending Model
6.4. Asia Pacific Peer-to-Peer Lending Market Analysis, By Country, 2014 – 2024 (US$ Bn)
6.4.3. Rest of Asia Pacific
7. Rest of the World Peer-to-Peer Lending Market Analysis, 2014 – 2024 (US$ Bn)
7.2. Rest of the World Peer-to-Peer Lending Market Analysis, By End User, 2014 – 2024 (US$ Bn)
7.2.1. Consumer Credit
7.2.2. Small Business
7.2.3. Student Loans
7.2.4. Real Estate
7.3. Rest of the World Peer-to-Peer Lending Market Analysis, By Business Model, 2014 – 2024 (US$ Bn)
7.3.1. Traditional P2P Model
7.3.2. Marketplace Lending Model
7.4. Rest of the World Peer-to-Peer Lending Market, By Country, 2014 – 2024 (US$ Bn)
7.4.1. Middle East and Africa
7.4.2. Latin America North Africa
8. Company Profiles
8.1. LendingClub Corporation
8.1.1. Company Details (HQ, Foundation Year, Employee Strength)
8.1.2. Market Presence, By Segment and Geography
8.1.3. Key Developments
8.1.4. Strategy and Historical Roadmap
8.1.5. Revenue and Operating Profits
* Similar details would be provided for all the players mentioned below
8.2. Prosper Marketplace, Inc.
8.3. CommonBond Inc.
8.4. Upstart Network Inc.
8.5. Funding Circle Limited
8.6. CircleBack Lending, Inc.
8.8. Social Finance Inc.
8.9. Pave, Inc.
8.10. Daric Inc.
This report aims to provide a detailed and vital analysis of the global peer-to-peer market along with revenue and growth forecasts for the period from 2014 to 2024. The global financial crisis, subsequently resulted in the emergence of the peer-to-peer lending outside of the traditional financial system especially in countries such as the U.S., the U.K. and Europe. Typically, the peer-to-peer lending business provides a unique and transparent platform to individuals, small businesses, and start-ups to invest or borrow money in few clicks
The report offers an in-depth study of the market drivers, restraints, and growth opportunities. Using these factors, the report identifies various trends expected to impact the market during the forecast period from 2016 to 2024. It includes a comprehensive coverage of the underlying economic, environmental, and technological factors influencing the peer-to-peer market. It provides the competitive landscape and analysis of key players in the global peer-to-peer market in order to highlight the state of competition and to identify the various business strategies adopted by them. In this report, the global peer-to-peer lending market is segmented on the basis of end-users and business models and geographies and explains the penetration of each market segment within various geographies, and how these segments have accelerated the growth of the market as a whole.
The end-users segment of the peer-to-peer lending market is classified into consumer credit, small business, student loans, and real estate and the business models segment is classified into traditional P2P model and marketplace lending model. Geographically, the global market for peer-to-peer lending has been segmented into five regions: North America, Europe, Asia Pacific, and Rest of the World (Middle East and Africa and Latin America). The market size and forecast for each region has been provided for the period from 2014 to 2024 along with the CAGR (%) for the forecast period from 2016 to 2024. The study also includes qualitative analysis of the competitive scenario for major countries/regions in these geographical segments.
The report includes an overview of the market strategies, annual revenues, and the recent developments of key companies operating in the market. The key market participants profiled in this study include LendingClub Corporation, Prosper Marketplace, Inc., CommonBond Inc., Upstart Network Inc., Funding Circle Limited, CircleBack Lending, Inc., Peerform, Social Finance Inc., Pave, Inc., and Daric Inc.
Global Peer-to-Peer Lending Market Analysis, By End-Users, 2014 – 2024 (US$ Bn)
- Consumer Credit
- Small Business
- Student Loans
- Real Estate
Global Peer-to-Peer Lending Market Analysis, By Business Model, 2014 – 2024 (US$ Bn)
- Traditional P2P Model
- Marketplace Lending Model
In addition, the report provides cross-sectional analysis of the peer-to-peer market with respect to the following geographical segments along with select country market estimates:
- North America
- The U.S.
- Rest of North America
- The U.K.
- Rest of Europe
- Rest of Asia Pacific
- Rest of the World
- Middle East and Africa (MEA)
- Latin America