Peer To Peer (P2P) Lending Market Report
Peer to Peer (P2P) Lending Market, by Business Model (Alternate Marketplace Lending, Traditional Lending), Type (Consumer Lending, Business Lending), End User (Consumer Credit Loans, Small Business Loans, Student Loans, Real Estate Loans), Regional Analysis (North America, Europe, Asia-Pacific, LAMEA): Global Opportunity Analysis and Industry Forecast, 2020–2027
Peer to Peer (P2P) Lending Market Analysis:
According to a new study conducted by Research Dive, the global peer to peer (P2P) lending market has experienced significant growth in the previous years and is predicted to continue its trend in the coming years. The global market size has been commanded by the North America region in 2019 and is expected to remains its dominance throughout the analysis period. Asia-Pacific is expected to have profitable opportunities for the growth of the market in the forecast years.
Peer-to-peer (P2P) lending allows individuals to get loans or financial support directly from other people by eliminating the middleman's financial institutions. P2P lending networks connect borrowers directly to investors. In recent days, websites and online systems that facilitate P2P lending services have greatly augmented its acceptance as a substitute for financial assistance.
Increasing adoption by individuals and businesses along with increasing popularity among micro & small businesses are the major drivers for the growth of the peer to peer (P2P) lending market
Growing adoption of peer-to-peer lending practices by individuals and businesses due to minimal operation cost and very low market risk is majorly driving the market's growth in the forecast years. This growth is majorly attributed to P2P lending practices that do not need any outstanding infrastructure and does not require any large workforce compared with conventional banking and financial systems. Also, government initiatives support several investors to extend their support to micro & small size enterprises (MSE) due to MSE's having faced difficulties in getting a loan and financial support for the banks. This factor is also predicted to impel the market growth in the estimated timeframe. This growth is mainly due to almost all MSE's initially needs credit to maintain their working capital requirements effectively; they require investors to manage working business financial necessities in such situations. According to Economic Survey 2018-19, they estimated that the number of loans paid by banks accounted for around 5.6% to MSE's. These abovementioned factors are projected to impel the growth of the market in the review period. However, low awareness among individuals about P2P lending practices is a significant restraint for the forecast years' development. Also, the risk of losing investment and stringent government regulations for loan processing is further estimated to limit the peer to peer (P2P) lending market growth in the estimated timeframe.
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Rapid growth in the lending practice for medical practices is expected to be a significant opportunity for the growth of the peer to peer (P2P) lending market
In recent years, P2P lending platforms have offered hassle-free and instant medical loans during emergencies to avoid getting loans from banks because majorly, banks are not designed for instant loans. This factor is predicted to boost demand for P2P lending practices and is estimated to create enormous market growth opportunities in the upcoming years.
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The traditional lending segment is expected to have a dominating share in the global market
The global market has been categorized into alternate marketplace lending and traditional lending based on the business model. Among these, the traditional lending sub-segment was the major revenue contributor in 2019, is expected to rise at a faster rate, and is predicted to have lucrative growth during the projection period. They were increasing P2P lending practices for alternative lending business models to offer extensive range of loan options to businesses and consumers who cannot obtain loans from banks for any reason. This aspect is estimated to boost market growth in the forecast time.
The business lending type has an evident market size in the previous years
Based on type, the global market has been categorized into consumer lending and business lending. In both of these, in 2019, the business lending type sub-segment accounted for the highest peer to peer (P2P) lending market size and is anticipated to remains its growth with a special rate during the prediction time. Along with this, the consumer lending sub-segment is predicted to rise at a healthy rate during the forecast years. This growth is mainly due to the increasing importance of P2P lending services for emergencies like medical, educational support, and others.
Small business loans will have lucrative growth in the upcoming decades
The global market is categorized into consumer credit loans, small business loans, student loans, and real estate loans based on end-user. Among these, small business loans accounted for most of the peer to peer lending market share in the previous decades and are expected to continue its steady rise during the estimated years. Broad utilization of P2P lending practices by small business loans purpose due to these loan support has excellent support in meeting initial credit requirements for small businesses is predicted to propel the market's growth in the analysis period.
Asia-Pacific is expected to have noteworthy growth prospects in the coming decades
In 2019, the North America region generated for dominant revenue share in the overall P2P lending market and was estimated to continue its command over the global marketplace throughout the prediction period. This dominance is majorly attributed to the growing digitization of banking services to provide transparent banking services over the conventional systems. Further, the increasing trend for online lending processes and significant players in the North America region is estimated to fuel the market growth in the review period. Besides North America, the Asia-Pacific peer to peer (P2P) lending market is expected to witness remarkable growth and is predicted to produce significant investment opportunities for the market players during the forecast years. In India, the Reserve Bank of India (RBI) has launched a new P2P lending platform to provide loan services under the non-banking financial companies (NBFC) category. This factor is predicted to accelerate the growth of the market in the Asia-Pacific region.
To explore more about peer to peer (P2P) lending market, get in touch with our analysts here.
Partnerships and product launches are the most frequent strategies followed by the significant players
Source: Research Dive Analysis
The leading peer to peer (P2P) lending market players are Funding Circle, LendingClub Corporation, OnDeck, RateSetter, Zopa Bank Limited, Avant, LLC, Kabbage, LendingTree, LLC, Prosper Funding LLC, and Social Finance, among many others. These prominent marketers implement both inorganic and organic growth strategies such as joint ventures, business expansions, and collaborations to fortify their global marketplace presence. These are the most frequently adopted strategies by leading market players.
Historical Market Estimations
Base Year for Market Estimation
Forecast timeline for Market Projection
North America, Europe, Asia-Pacific, LAMEA
Segmentation by Business Model
Segmentation by Type
Segmentation by End User
Key Countries covered
U.S., Canada, Germany, UK, Italy, Spain, Russia, Japan, China, India, South Korea, Australia, Brazil, Argentina, GCC, and Saudi Arabia
Key Companies Profiled
Q1. Who are the leading companies in the peer to peer (P2P) lending market?
A. Funding Circle, OnDeck, Zopa Bank Limited, and LendingTree, LLC are some of the key players in the global peer to peer (P2P) lending market.
Q2. Which region possesses more significant investment opportunities in the coming future?
A. Asia-Pacific possesses excellent investment opportunities for investors to witness the most promising growth in the coming years.
Q3. What are the strategies opted by the leading players in this market?
A. Business expansions and joint ventures are the key strategies opted by the operating companies in this market.
Q4. Which companies are investing more in R&D practices?
A. OnDeck, RateSetter, Kabbage, and Social Finance are investing more in R&D activities for developing new products and technologies.