Impact Analysis of Covid-19

The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.

Market Insight- Global Peer-to-Peer Lending Market

Market Overview

Peer-to-peer lending or also referred to as the P2P lending practice of lending money to businesses or individuals with the help of online services that match lenders with borrowers. It eliminates the financial institution as the middleman. P2P lending has allowed investors to reciprocate higher returns on their investment by balancing the risk. Since P2P lending provides easy loans and additional credit to small and medium-sized businesses, it has a significant contribution to economic growth of many countries. Spearheading the peer-to-peer lending marketplace are the U.K. and the U.S. which have now evolved into mature peer-to-peer lending ecosystems. However, countries such as China, Australia, Japan, and India are the emerging markets for peer-to-peer lending due to borrowers’ lack of credit access.

The global Peer-to-Peer Lending Market was accounted for US$ 124.9 Billion in terms of value in 2019 and is expected to grow at CAGR of 48.2% for the period 2019-2027.

Market Dynamics- Drivers

  1. Availability of lower interest rates for borrowers is expected to drive growth of the global peer-to-peer lending market during the forecast period

Peer-to-peer lending providers have provided crucial financing solutions by providing easy loans for small and medium businesses at reasonable interest rates. According to the report published in 2014 by the Federal Reserve Bank of Cleveland, peer-to-peer interest rates are typically lower than those of credit cards for most borrowers. This is combined with a superior user-friendly experience for both borrowers and investors. Since the market is in the nascent stage and has less competition, it is expected to attract more customers in the near future. Hence, these factors are expected to drive the growth of the market during the forecast period.

  1. Supportive regulatory policies from the government of various countries are expected to propel the global peer-to-peer lending market growth over the forecast period

The U.K. and European governments are supporting peer-to-peer lending platforms by providing a suitable and specific framework that supports growth of the industry and ensures to protect lenders from any potential risk. For instance, Financial Conduct Authority, the U.K. regulatory body, has developed and implemented regulations specific to peer-to-peer lending industry, which address the risks and other typical attributes of this industry. Moreover, the French Government has been strongly supporting peer-to-peer lending industry. In fact, it has developed a dedicated website for the industry, which has listed names of prominent peer-to-peer lending projects. The website also provides information regarding important activities of the industry and provides back-office support. Thus, supportive policies by governments are expected to boost the global peer-to-peer lending market growth over the forecast period.

North America region dominated the global Peer-to-Peer Lending Market in 2019, accounting for 42.4% share in terms of value, followed by Asia Pacific, Europe, Latin America and Middle East and Africa.

Peer-to-Peer Lending  | Coherent Market Insights

Source: Coherent Market Insights

Market Dynamics- Restraints

  1. Risks associated with credit and lend are expected to hinder the global peer-to-peer lending market growth over the forecast period

In the majority of cases, peer-to-peer lending providers do not lend their own money and thus the investors are at major risks. This also means that investors might lose all their money, in case of borrowers default on loan repayments. This risk grows gradually with comparatively high returns the investor is expected to receive for its investment. Moreover, peer-to-peer lending providers claim and rate borrower’s ability to repay the loan and their level of creditworthiness on numerous factors. However, all such ratings are inconsistent and do not provide corresponds to ratings provided by an external credit rating agency. Thus, these factors are expected to hinder the market growth in the near future.

  1. The return of lending tendency of banks is expected to hamper the global peer-to-peer lending market growth during the forecast period

Generally, banks and mainstream lenders are unwilling to lend money to small and medium-sized businesses, which has offered a massive opportunity for peer-to-peer lenders. However, if the tendency for lending in these areas returns among banks and other mainstream lenders then it would make it challenging for peer-to-peer lenders. Furthermore, in the recent past conventional saving schemes of all types have struggled to provider high interest rates. However, return to higher rates on savings could restraint peer-to-peer lending providers from getting investor’s attention. Therefore, these factors are expected to hinder the global peer-to-peer lending market growth during the forecast period.

Market Opportunities

  1. Upcoming massive opportunities in Asia Pacific

The marketplace in emerging economies in Asia Pacific such as China and India operates in both online and offline mode. The recent past has witnessed emergence of online peer-to-peer lending platforms. According to a report by an international philanthropic investment firm Omidyar Network, it was observed that in 2014 more than 400 million people in India borrowed money. However, only 1 in 7 people were approved for a formal loan. In order to bridge this gap, large number of P2P lending companies in India are emerging. However, this number is very less as compared to number of registered P2P companies in China, which are over 2,000.

  1. Adoption of technology is expected to improve lending experience

Technological development has enabled peer-to-peer lending platforms to get familiar investors directly with businesses and individuals seeking monetary assistance and equity financing. Moreover, technology has enabled new players to make financing decisions and engage with customers more aggressively. It has also assisted in providing low cost operations as compared to traditional financial institutions with large and expensive corporate infrastructure.

Peer-to-Peer Lending  | Coherent Market Insights

Source: Coherent Market Insights

Market Trends

  1. Emergence of institutional investors

Entry of institutional investors has allowed the market to grow significantly. A large share of funding is now provided by institutional investors rather than individual investors. For instance, in November 2014, Europe’s peer-to-peer global investment fund Eaglewood was launched. It is a publicly-traded closed-end fund that deployed US$ 228 Mn primarily across the U.K. and the U.S. platforms. Moreover, in January 2014, a large investment was made by London based alternative asset management firm Arrowgrass Capital Partners in the Europe's largest peer-to-peer lending service Zopa.

  1. Point-of-sale financing

Payment made through peer-to-peer lending platforms at the point of sales for purchases done at online sellers and merchants offers a significant value. For instance, in order to provide easy loans at any e-commerce merchant, San Francisco-based Affirm Financial Technologies is offering its consumers with “virtual cards” that entitle them to transact online or at specific retailers.

Segment information:

In global Peer-to-Peer Lending Market, by end user, small business sub-segment dominated the global market in 2019, accounting for 39.03% share in terms of value, followed by consumer credit, student loans and real estate respectively.

Peer-to-Peer Lending  | Coherent Market Insights

Source: Coherent Market Insights

Competitive Section

Key players operating in the global peer-to-peer lending market are Daric Inc., Prosper Marketplace, Inc., Pave, Inc., CommonBond Inc., Social Finance, Inc., Upstart Network Inc., Social Finance, Inc., Funding Circle Limited, Peerform, and CircleBack Lending, Inc.

Key Developments

  1. Key players in the market are focused on product launches, in order to enhance product portfolio. For instance, in March 2016, Prosper Marketplace launched its first mobile app by the name of Prosper Daily.
  2. Major companies in the market are involved in partnerships and collaborations, in order to gain a competitive edge in the market. For instance, in January 2016, CommonBond partnered with Macquarie Capital, Barclays, and started providing loans to its student borrowers.

Frequently Asked Questions

What is The Scope of the Report?

This market study covers the global and regional market with an in-depth analysis of the overall growth prospects in the market. Furthermore, it sheds light on the comprehensive competitive landscape of the global market. The report further offers a dashboard overview of leading companies encompassing their successful marketing strategies, market contribution, and recent developments in both historic and present contexts.

What are the Key Segments in the Market?

  • By End-user
  • By Business Model
  • By Region

Which Market Dynamics Affects the Businesses?

The report provides a detailed evaluation of the market by highlighting information on different aspects which include drivers, restraints, opportunities, and threats. This information can help stakeholders to make appropriate decisions before investing.

Peer-to-peer lending or also referred to as the P2P lending practice of lending money to businesses or individuals with the help of online services that match lenders with borrowers. It eliminates the financial institution as the middleman. P2P lending has allowed investors to reciprocate higher returns on their investment by balancing the risk. Since P2P lending provides easy loans and additional credit to small and medium-sized businesses, it has a significant contribution to economic growth of many countries. Spearheading the peer-to-peer lending marketplace are the U.K. and the U.S. which have now evolved into mature peer-to-peer lending ecosystems. However, countries such as China, Australia, Japan, and India are the emerging markets for peer-to-peer lending due to borrowers’ lack of credit access.

Market Dynamics

The online interface has acted as one of the biggest differentiators in terms of the customer experience for peer-to-peer platforms. It has made peer-to-peer lending process simplified and streamlined. Technological advancements have enabled peer-to-peer lending platforms to get familiar investors with borrowers that are seeking monetary assistance and equity financing. Technology has also assisted in providing low-cost operations compared to traditional financial institutions with their large and expensive corporate infrastructure and branches. Moreover, peer-to-peer companies provides loans to students that have developed their own analyzing prediction software that enables easy loans by predicting borrower’s financial capability and personal propensity to repay. Hence, these factors are expected to support the global peer-to-peer lending market growth over the forecast period. Peer-to-peer lending providers have provided crucial financing solutions by providing easy loans for small and medium businesses at reasonable interest rates. According to the report published in 2014 by the Federal Reserve Bank of Cleveland, peer-to-peer interest rates are typically lower than those of credit cards for most borrowers. This is combined with a superior user-friendly experience for both borrowers and investors. Since the market is in the nascent stage and has less competition, it is expected to attract more customers in the near future. Hence, these factors are expected to drive the growth of the market during the forecast period.

Market Taxonomy

This report segments the Global Peer-to-Peer Lending Market on the basis of End User, Business Model and Region. On the basis of End User, Global Peer-to-Peer Lending Market is segmented into Consumer Credit, Small Business, Student Loans and Real Estate. On the basis of Business Model, the Global Peer-to-Peer Lending Market is segmented into Traditional P2P Lending and Marketplace Lending. On the basis of region, Global Peer-to-Peer Lending Market is segmented into North America, Latin America, Europe, Asia pacific, Middle East and Africa.

Key features of the study:

  • This report provides an in-depth analysis of the Global Peer-to-Peer Lending Market and provides market size (US$ Million) and compound annual growth rate (CAGR %) for the forecast period (2019-2027), considering 2019 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global Peer-to-Peer Lending Market based on the following parameters – regulatory landscape, company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered in the Global Peer-to-Peer Lending Market includes Daric Inc., Prosper Marketplace, Inc., Pave, Inc., CommonBond Inc., Social Finance, Inc., Upstart Network Inc., Social Finance, Inc., Funding Circle Limited, Peerform, and CircleBack Lending, Inc.
  • These key market players are focusing on collaboration strategy with other market leaders to innovate and launch new products to meet the increasing needs and requirements of consumers.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology up gradation, market expansion, and marketing tactics
  • The global Peer-to-Peer Lending Market report caters to various stakeholders in this industry including investors, suppliers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the Global Peer-to-Peer Lending Market

Detailed Segmentation:

  • By End User
    • Consumer Credit
    • Small Business
    • Student Loans
    • Real Estate
  • By Business Model
    • Traditional P2P Lending
    • Marketplace Lending
  • By Region
    • North America
    • Europe
    • Asia Pacific
    • Middle East and Africa
    • Latin America
  • Company Profiles
    • CircleBack Lending, Inc.
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • CommonBond Inc.
    • Daric Inc.
    • Funding Circle Limited
    • Pave, Inc.
    • Peerform
    • Prosper Marketplace, Inc.
    • Social Finance, Inc.  
    • Upstart Network Inc.

Browse all the market data tables and figures on “Global Peer-to-Peer Lending Market - Forecast to 2027”

Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, BY End User
      • Market Snippet, By Business Model
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Regulatory Scenario
    • Industry Trend
    • Merger and Acquisitions
    • New system Launch/Approvals
  4. Global Peer-to-Peer Lending Market, By End User, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Consumer Credit
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Small Business
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Student Loans
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Real Estate
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  5. Global Peer-to-Peer Lending Market, By Business Model, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Traditional P2P Lending
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Marketplace Lending
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  6. Global Peer-to-Peer Lending Market, By Region, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, End User, 2019–2027(US$ Million)
      • Market Size and Forecast, By Business Model, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.S.
        • Canada
    • Europe
      • Regional Trends
      • Market Size and Forecast, End User, 2019–2027(US$ Million)
      • Market Size and Forecast, By Business Model, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, End User, 2019–2027(US$ Million)
      • Market Size and Forecast, By Business Model, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, End User, 2019–2027(US$ Million)
      • Market Size and Forecast, By Business Model, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, End User, 2019–2027(US$ Million)
      • Market Size and Forecast, By Business Model, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  7. Competitive Landscape
    • Company Profiles
      • CircleBack Lending, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • CommonBond Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Daric Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Funding Circle Limited.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Pave, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Peerform
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Prosper Marketplace, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Social Finance, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Upstart Network Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
  8. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse market data tables and figures on “Global Peer-to-Peer Lending Market -forecast to 2027”.

Frequently Asked Questions

The global peer-to-peer lending market is estimated to reach US$ 2,921.7 Billion by 2027.
Major players operating in the global peer-to-peer lending market include Daric Inc., Prosper Marketplace, Inc., Pave, Inc., CommonBond Inc., Social Finance, Inc., Upstart Network Inc., Social Finance, Inc., Funding Circle Limited, Peerform, and CircleBack Lending, Inc.
Risks associated with credit and lend is one of the major factors that is expected to hamper growth of the market over the forecast period.
Availability of lower interest rates for borrowers is one of the major factors that is expected to propel growth of the market over the forecast period.
The global peer-to-peer lending market is estimated to exhibit a CAGR of 48.2% during the forecast period (2019-2027).
Among regions, North Americais expected to hold a dominant position in the global peer-to-peer lending market in 2019, accounting for 42.4% sharein terms of value, followed by Asia Pacific, Europe, Latin America and Middle East and Africa.
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