Global Peer-to-Peer Lending Market Gains Impetus from Favorable Government Regulations

Published By : 24 Jun 2016 | Published By : QYRESEARCH

Due to tightening banking norms, lending rates in developed countries have incredibly increased. This has encouraged borrowers to seek alternative yet safe lending platforms, which subsequently boosts the global peer-to-peer lending market. According to a report published by Transparency Market Research, the global peer-to-peer lending market, which stood at US$26.16 bn in 2015 is expected to reach US$897.85 bn by the end of 2024. If the figures hold true, the market will exhibit an exception CAGR of 48.2% between 2016 and 2024. 

The market has been significantly gaining from the recent technological advancements. Advent of novel technologies has made communication between lender and borrower easier and more transparent. These advances have enabled peer-to-peer lending platforms to offer direct communication between businesses or individuals borrowers and investors. Peer-to-peer landing platforms have lately gained much popularity since they allow instant approval of loans at reasonable rates. 

North America Dominates Global Peer-to-Peer Lending Market 

Regionally, North America dominated the global peer-to-peer lending market in 2015, holding a share of 43.8%. The demand witnessed in the region is predominantly contributed by the U.S. The peer-to-peer lending market has been exhibiting robust growth in this country since the last few years. The tightening banking regulations in the country, post economic slowdown, has played a crucial role in augmenting demand from the peer-to-peer lending market. Other factors such as declining consumer loyalty towards financial institutions, favorable regulatory environments, and convenience offered by online factors are also considerably aiding the expansion of the peer-to-peer lending market globally. 

Increasing Number of Start-ups to Boost Peer-to-Peer Lending Market in Asia Pacific

The market also witnesses lucrative opportunities in the U.K. The favorable government support in the region is contributing to the growth witnessed by the peer-to-peer lending market in the country. Besides this, the market is also witnessing attractive opportunities in Asia Pacific. The rising number of start-ups in China, Japan, and Australia has been aiding the growth of the peer-to-peer lending market in Asia Pacific. 

By end users, the global peer-to-peer lending market can be bifurcated into marketplace lending model and traditional P2P model. Of these, the segment of marketplace lending model dominated the market in 2015, accounting for a share of 74%. Furthermore, the segment is expected to report a CAGR of 50% during from 2016 to 2024.

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