The latest report by IMARC Group, titled “Peer to Peer (P2P) Lending Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027,” finds that the global peer to peer (P2P) lending market size reached US$ 112.9 Billion in 2021. Peer to peer (P2P) lending is the process of providing loan to an individual or business without the involvement of any bank or financial institution. It lends money through online services that connect borrowers directly to lenders or investors, who lend money to qualified applicants. P2P lending aims to increase the returns for the lenders and to reduce the rate of interest for borrowers. It offers cost-effective services to borrowers compared to traditional financial institutes while also assisting in quick and convenient loans at competitive interest rates and low fees. In P2P lending,the individual website sets the rates and terms, which enables the transaction. Consequently, the system promotes prompt, paperless, high return, and flexible ways of borrowing and lending money.
We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.
Global Peer to Peer (P2P) Lending Market Trends:
The market is primarily driven by increasing digitization in the banking industry. Besides this, the emerging small and medium enterprises (SMEs), especially across developing countries, are also facilitating the market growth. These organizations require an alternative financing option that provides minimal charging fees and convenient repayment options. In addition to this, P2P lending platforms also do away with the cost of establishing physical branches, maintenance and staff, thereby increasing their demand across organizations. Moreover, governments across various countries are undertakinginitiatives to support P2P lending by offering specific frameworks. Furthermore, the introduction of blockchain technology and smart contracts, which offer transparent and reliable lending and borrowing facilities and safeguard the privacy of the customers, are also acting as major growth-inducing factors. Looking forward, the market is expected to grow at a CAGR of 28.1% during the forecast period (2022-2027).
- Based on the loan type, the market has been segmented into consumer and business lending.
- On the basis of the business model, the market has been classified into marketplace and traditional lending.
- The market has been categorized based on the end user into consumer (individual/households), small business, large business, real estate, and others.
- Region-wise, the market has been divided into North America (the United States and Canada), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others), Latin America (Brazil, Mexico, and others), and Middle East and Africa.
- The competitive landscape of the market has been examined, with some of the key players being Avant LLC, CommonBond Inc., Funding Circle Limited, LendingClub Corporation, Lendingtree Inc. (InterActiveCorp and Tree.com Inc.), On Deck Capital Inc., Prosper Marketplace Inc., Retail Money Market Limited, Social Finance Inc., Upstart Network Inc. and Zopa Limited.
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