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Geriatrics Seeking Better Return on Investments to Create a Stir in Global Peer-to-peer (P2P) Lending Market

Blog Description

Peer-to-peer (P2P) lending refers to a method of lending money through online transactions that connect directly connect borrowers to lenders. Though this market is a fairly new one, it has been growing steadily with new categories such as mortgages and secured loans. The global peer-to-peer lending market is gaining a remarkable momentum giving the overall banking sector serious competition. The peer-to-peer lending market was valued at US$26.16 bn in 2015. Analysts predict that this market will surge at a significant CAGR of 48.2% between 2016 and 2024.

Browse Full Global Peer-to-Peer Lending Market Report with TOC :

Emergence of Startups in Asia Pacific Drives Peer-to-peer Lending Market

The primary growth driver for the global peer-to-peer market is the supportive regulations made by the governments of the U.S. and the U.K. The framework promises to protect the lenders and borrowers from any potential risks present in this business, which has been the driving force behind the success of this market. In addition to this, a sudden boom in the number of small businesses and startups in India and China have led the peer-to-peer lending market in Asia Pacific to flourish. This trend has created a huge demand for loans and is expected to continue to do so in the coming years.

Financial Needs of Millennials will Offer Opportunities to Overall Market

The global peer-to-peer lending market is likely to witness a paradigm shift in the near future due to an increasing pool of geriatrics in developing regions. A large part of this population is looking for earning better returns on investments than what is being offered by traditional banking systems. Simultaneously, the millennials are also seeking loans to finance their major products or refinancing their student loans. The convenience of transacting in an online manner is making millennials the chief target of the market. The interconnection of the two factors is expected to result in a lucrative opportunity for the overall market.

Marketplace Lending Model Leads Overall Market

The global peer-to-peer lending market has been segmented on the basis of end users, business model, and geography. These services are used by users vying for consumer credit, student loans, real estate, and small businesses. The small business segment was at the forefront of the growth of the peer-to-peer lending market business in 2015. Between 2016 and 2024, this segment is expected to progress at a CAGR of 48.8%.

Depending on the types of business models, this market is segmented into marketplace lending model and traditional P2P model. The marketplace lending model held a significant share of 74% in the overall peer-to-peer lending market in 2015. The study indicates that this segment will expand at a 50% CAGR between 2016 and 2024.

Geographically, the global peer-to-peer lending market is categorized into Europe, North America, Asia Pacific, and Rest of the World. Research suggests that North America is leading the global peer-to-peer lending market. As of 2015, North America held a share of 44% in the total revenue of the market. However, analysts predict that the Asia Pacific peer-to-peer lending market will grow at a rapid pace in the forecast period as economies of Japan, India, China, and Australia flourish.

Browse the full Press Release of Global Peer-to-Peer Lending Market at

The key players in the peer-to-peer lending market are LendingClub Corporation, CommonBond Inc., Prosper Marketplace, Inc., Upstart Network Inc., Funding Circle Limited, Peerform, Social Finance Inc., CircleBack Lending, Inc., Daric Inc., and Pave, Inc. amongst others. However, the shifting demographics and adoption of newer technologies that enhance consumer experience of transacting online by traditional financial institutions will challenge the overall market.