P2P lending has a lot of potential in the developing economies owing to high demand for consumer loans. Growing awareness about marketplace lending, low-interest rates, and investment transparency are driving the market further.
The global peer to peer lending market is projected to reach USD 820.70 billion by 2025. The driving factors influencing the global peer to peer lending market demand are growing awareness among consumers, transparency in process, low-interest rates, process efficiency for easy loan distribution, and demand for loans by small & medium enterprises, real estate sector and other consumer loans.
The market research report on global peer to peer lending studies the market demand, opportunities, restraints and tending scenario for the period ranging from 2015 to 2025. The report sketches the historical trends from 2015 to 2017 and market forecast from 2018 to 2025. Moreover, the report also covers the present status and future prospects of the market at global as well as country level. The global peer to peer lending market is segmented on the basis of type overview and regional overview.
The companies are investing in new technologies to make the process more easy and efficient. For instance, Faircent has launched e-sign facility in collaboration with eMudhra to reduce the turnaround time for loan distribution by further reducing the human intervention in the process. Additionally, the regulatory bodies are working towards imposing strict regulations to curb the increasing fraudulent activities in the P2P lending market.
Based on the type, global peer to peer lending are categorized into consumer lending and business lending. In the year 2017, consumer lending dominated the overall peer to peer lending market by occupying a 72.2% share. P2P lending has provided easy access to loans due to which there is a rise in personal loans, home loans, student loans, and other consumer loans. However, business lending is also witnessing a significant growth owing to the growing number of small & medium businesses across the globe registering an exponential growth rate over the forecast period.
Looping on the regional overview, the global peer to peer lending is segmented into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa. In 2017, Asia Pacific dominated the global P2P lending market of which China occupied a major share in this region. However, in recent years there has been an increasing number of P2P lending frauds in China due to which China Banking and Insurance Regulatory Commission has imposed stringent regulations to restrict P2P lending companies from committing crimes.
In Europe, Unite Kingdom dominated the P2P market by contributing more thena 82.3% market share. Zopa was founded in 2005, the first company to launch website for borrowing and lending services. Afte which many new companies were lauched including funding circle and rate setter. The stringent reguations implemented by the Financial Conduct Authority has paved the way for the UK P2P lending market. Moreover, many start ups are coming in the market as fundings are increasing by venture capitals.
As of 2017, the global P2P lending market is fragmented with many regional and international players across the globe. Here are some of the leading players of the global peer to peer lending market include Zopa, Prosper Marketplace, Lending Club, Funding Circle, Upstart, SoFi, RateSetter, China Rapid Finance, PPDAI Group, Funding Societies.
Key Segments of the Global Peer To Peer Lending Market
Type Overview, 2015-2025 (USD Million)
- Consumer Lending
- Business Lending
Regional Overview, 2015-2025 (USD Million)
- North America
- United Kingdom
- The Netherlands
- Rest of Central & Eastern Europe
- Asia Pacific
- South Korea
- New Zealand
- Rest of Asia Pacific
- Central & South America
- Rest of Central & South America
- Middle East & Africa