The global P2P lending market to grow at a CAGR of 53.06% during the period 2016-2020.
The report covers the present scenario and the growth prospects of the global P2P lending market for 2016-2020. To calculate the market size, the analyst considers the lending amount through P2P platforms in the Americas, Asia Pacific (APAC), andEurope, the Middle East, and Africa (EMEA). The report also includes a discussion of the key vendors operating in this market.
One of the key trends for market growth will be rise in growth of small business lending. We expect more P2P lending and crowd funding with government support, which would help investors to make small investments in private companies. The European Commission is evaluating soft-law measures that could help promote P2P lending and crowdfunding across Europe. The commission is investigating how government funding could be aligned to support P2P lending and crowdfunding platforms and investment opportunities during the forecast period.
According to the report, one of the key drivers for market growth will be increase in global lending of MSMEs. Research and development in product structuring are vital in addressing the credit gaps in the MSME’s financing. Innovations such as equipment lease finance can help meet the requirement for term debt obligations. Similarly, receivable financing, bills discounting, and P2P lending can substitute prerequisites of working capital financing, thus tending to the special needs of MSMEs. Local vendors in the emerging market have the best monitoring capability and knowledge of MSMEs, allowing structuring of working capital finance, channel finance, and cash credits that can meet the needs of the enterprise or firms, thereby empowering huge economies of scale.
Further, the report states that one of the challenges against the market growth will be increasing regulatory risks. If we look at the present market, the P2P lending platforms are subject to regulations that are for certain consumer banking and other financial institutions. The consumer credit that is provided by the banking and financial institutions are subjected to a number of laws. These laws regulate the credit life-cycle that includes underwriting, payment terms, agreements and disclosures, advertisements and solicitations, and debt collection practices. There are also other laws like privacy and data security and anti-money laundering laws that regulate the relationship between the customers or borrowers and the banking and financial institutions.