In the financial services industry, P2P first emerged in 2005 with a focus on lending and borrowing. P2P lending platforms, also known as marketplace lending platforms, offered an alternative to traditional banking and payment systems, since they cater to the underserved with services like consumer lending, student loans, real estate loans and small-business lending. While these primarily online providers create a marketplace for lenders and borrowers, lenders can also expect a higher rate in this system.
In the US, a number of P2P lenders are lending directly to borrowers through their online platforms. This peer to peer lending model in the US is growing in popularity because of lower interest rates, simple application processes and quick lending decisions. The model is also expanding rapidly in new product categories like mortgages and other secured loans.
P2P lending in the US is still in its infancy. However, the historic growth of P2P lending in the US is showing signs that it will become one of the top growing segments in the financial services industry. US P2P platforms issued loans worth $889 million in 2012, $2.9 billion in 2013 and $6.6 billion in 2014. By 2016, P2P lending in the US will reach $32.8 billion.
“Transformation of P2P Lending in the U.S. – A Research Report“ answers the following questions:
1. Why is P2P Lending disruptive in nature? How will it impact the traditional banking system?
2. How big is the addressable market for P2P lending in the U.S.?
3. Who are the players dominating the industry? Is there any room for new players?
4. When should we expect the inflection point in P2P Lending?