Hey there, stranger: lending has proven to be lucrative, but regulations threaten industry profitability
IBISWorld’s Peer-to-Peer Lending Platforms market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.
Industry Statistics & Market Size
Annual Growth 08-13
Annual Growth 13-18
Industry Analysis & Industry Trends
The Peer-to-Peer Lending Platforms industry is a new, fast-growing industry that has experienced rapid growth in terms of revenue and enterprises over the past five years. However, regulations from the Securities and Exchange Commission have added some turbulence and uncertainty to the industry. Going forward, profit is expected to rise, but the industry will continue to be characterized by increased regulation and competition.
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Industry Report - Industry Products Chapter
Origination fees are paid by the borrower of a loan. The origination fee is taken out of the loan amount before the money is paid to the borrower. Typically, origination fees amount to 1.0% to 6.0% of the amount of the loan. At present, Lending Club advertises personal loans for consolidating debt, including credit card refinancing or lumping different forms of debt into one loan. It also advertises loans for home improvement, such as renovating a kitchen or bathroom or putting a pool in the backyard. The company also advertises small business loans. IBISWorld estimates that origination fees as a portion of revenue has declined over the past five years as companies have sought to interest borrowers in coming to them for loans over conventional banks... purchase to read more
What is the Peer-to-Peer Lending Platforms Industry?
Companies in this industry provide peer-to-peer lending, which occurs directly between individuals without the intermediation of a traditional financial institution. Peer-to-peer lending is a type of crowdfunding, which is the collective effort of individuals to pool their money to support the efforts of others. Crowdfunded fundraising, in which collective money supports others with financial donations and without planned repayment or accrued interest, is not part of this industry.
Origination feesServicing feesInterest income
Loan brokeringFinancial advising