Peer to peer lending is the practise of a person borrowing money from another person without the participation of a bank or other financial organisation. The primary goal of peer-to-peer lending is to increase returns for lenders while lowering interest rates for borrowers.

The size of the global market for Peer to Peer (P2P) Lending is expected to reach US$ 1.3 Trillion by 2032, expanding at a compound annual growth rate (CAGR) of 12.7%.

Covid-19 Impact & Market Status

The pandemic has expanded to nearly every country across the globe since the COVID-19 virus outbreak in December 2019, prompting the World Health Organization (WHO) to declare coronavirus illness 2019 (COVID-19) a pandemic. Outperformers seek development in all dimensions, including core expansion, geographic expansion, up and down the value chain, and adjacent spaces, according to our research.

Every industry has been affected by the COVID-19 pandemic, including Aerospace & Defense, Agriculture, Food & Beverage, Automobile & Transportation, Chemical & Material, Consumer Goods, Retail & eCommerce, Energy & Power, Pharma & Healthcare, Packaging, Construction, Mining & Gases, Electronics & Semiconductor, Banking Financial Services & Insurance, ICT, and many others. The global population has prohibited themselves from leaving their houses and is on the verge of limiting themselves to their homes, which is having a detrimental or good impact on all markets. The paper examines the current and prospective consequences of the COVID-19 pandemic on the broader market, providing more credible and authentic estimates, based on the current market condition.

Coronavirus has wreaked havoc on the entire world. Lockdowns and strong social distancing measures have been implemented in nearly every country. Supply networks have been disrupted as a result of this. The pandemic has wreaked havoc on global systems.

This report has a detailed outlook of the many changes that have emerged in THE Global Peer to Peer Lending Market depending on upstream and downstream market conditions. A deep analysis of the Covid-19 pandemic inflicted changes in the businesses and the best industrial practices to restore growth trends across regions and countries have been documented in thorough detail to encourage progressive investment decisions by players and aspirants in the global Peer to Peer Lending Market.

Business Model Segment

The market is divided into Consumer Lending and Business Lending based on type. The market's growth is hampered by the risk of losing money, the installation of strict government regulations for loan processing, and poor public understanding of the benefits of P2P lending.

End User Segment Segment

The market is divided into Consumer Credit Loans, Small Business Loans, Student Loans, and Real Estate Loans based on the end user. Due to the increased acceptance of consumer credit loans among individuals and businesses to give financial flexibility, the consumer credit loan category is predicted to develop at the fastest rate throughout the projection period. As a result, the Peer to Peer (P2P) Lending Market trends have a lucrative opportunity.

Regional Segment

The Peer to Peer (P2P) Lending Market is divided into North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa based on geography. Because of the increasing usage of P2P platforms, North America is predicted to have the greatest market share in the global Peer to Peer (P2P) Lending Market. After America and Asia Pacific, the United Kingdom is the third most established P2P market in the world.

The competition between China and US

Due to the enormous shadow banking sector and unofficial estimates that support the market, China has taken the lead in the Asia Pacific market. It has a large number of peer-to-peer lending platforms, estimated to be around 2000 worldwide. China and the United States are competitors, whereas Canada will experience rapid growth in the coming years as a result of advances in SMEs and rising new firms.

 the P2P lending platform aids in the reduction of operational costs by lowering the cost of physical branches, manpower, and branch upkeep, thereby enhancing market growth.

The primary goal of peer-to-peer lending is to increase returns for lenders while lowering interest rates for borrowers. Furthermore, because P2P lending is exclusively conducted online, it aids in the provision of quick and convenient loans.

The rise of the worldwide peer to peer lending business is fueled by lower operational costs and decreased market risk for both lenders and borrowers. Furthermore, the implementation of digitalization in the banking sector increases transparency compared to traditional banking systems, which is projected to drive market growth.

The market's growth is hampered by the risk of losing money, the installation of strict government regulations for loan processing, and poor public understanding of the benefits of P2P lending. On the contrary, the growth of the Asia-Pacific market, which has resulted in a significant number of lenders and borrowers across the country, as well as an increase in the number of small business lending companies, is likely to give profitable chances for the peer to peer lending market.

P2P lending does not necessitate the construction of infrastructure or the employment of a huge workforce. The internet is used to run the P2P lending platform. The data is open to the public, and internet services provide access to their sites, providing consumers a fuller understanding of the types of loans accessible. These lending platforms make money by charging borrowers fees and deducting fees from investor loan repayments, which fuels the market's expansion.

The P2P lending platform aids in the reduction of operational costs by lowering the cost of physical branches, manpower, and branch upkeep, hence boosting market growth. Furthermore, the peer to peer lending platform provides an appropriate plan to ensure the borrower's payback process, lowering the investor's market risk. Investors can minimise many sorts of market risks, such as interest rates, unemployment rates, and property price risk, with the use of peer to peer lending platforms, which has a favourable impact on global market growth.

Avant Inc., Funding Circle Limited, Kabbage Inc., Lending Club Corporation, LendingTree LLC, On Deck Capital Inc., Prosper Marketplace Inc., RateSetter, Social Finance Inc., and Zopa Limited are among the prominent firms covered in the peer to peer lending market trends. To boost market penetration and strengthen their position in the business, these main companies have used a variety of techniques such as product portfolio growth, mergers and acquisitions, agreements, regional expansion, and partnerships.

In the banking sector, digitization brings transparency to the traditional banking system.

• One of the most extensively used tactics in financial services to increase core processing capabilities and provide enhanced client services and insights has been digitization. Because it provides greater transparency in enterprises, the P2P lending platform has an innovative advantage over traditional banking systems. A prospective borrower submits an application to the platform for review before a loan is posted on the platform's website, with all risks and interest rates explicitly stated, as well as the repayment time.
• This platform facilitates efficient decision-making by utilising technology to quickly analyse and assign risk grades and interest rates to loan applicants, which is a key contributor to the market's growth. Furthermore, with the rise in smartphone penetration and the number of netizens around the world, the online lending procedure has seen a considerable boost in recent years, fueling market expansion.

Peer to Peer Lending Market Scope

Key Segments of the Global Peer to Peer Lending  Market

Business Model Overview, 2018-2028 (USD Billion)

• Traditional Lending
• Alternate Marketplace Lending

Loans Overview, 2018-2028 (USD Billion)

• Consumer Credit Loan
• Small Business Loan
• Student Loans
• Real Estate Loan

EndUser Overview, 2018-2028 (USD Billion)

• Business
• Personal

Regional Overview, 2018-2028 (USD Billion)

North America

• U.S
• Canada

Europe

• Germany
• France
• UK
• Netherlands
• Spain
• Itlay
• Rest of Europe

Asia Pacific

• China
• India
• Japan
• Australia
• Singapore
• South Korea
• Rest of Asia Pacific

South America

• Mexico
• Brazil
• Rest of South America

Middle East and South Africa