Street credit: New industry's explosive growth may meet regulatory hurdles

In peer-to-peer lending, regular consumers sign up to invest in consumer and small business loans via an intermediary, the lending platform. During the past five years, revenue for the Peer-to-Peer Lending Platforms industry has grown as many consumers and small businesses embraced the concept. However, the industry will continue to experience relatively rocky waters during the five years to 2021 as the industry is relatively new, which subjects it to regulatory and marketing challenges. Though it will not see the dramatic revenue increases of the past five years, the industry can expect strong growth...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 11-16
128.3%
Forecast Growth 16-21
Profit
Employment
4,214
Businesses
287
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Industry Threats & Opportunities

  • The industry will benefit from increases in corporate profit and aggregate household debt
  • Many entrepreneurs see promise in the industry, as evidenced by the rising number of entrants
  • The industry is relatively new, which subjects it to regulatory change and marketing challenges
  • Industry Report - Starting a New Business Chapter

    Barriers to entry into the Peer-to-Peer Lending Platforms industry are medium, though barriers to success are high and are increasing. At the moment, capital requirements necessary to operate in this online-based is significantly lower than in the traditional banking industry. However, technical and financial prowess is paramount, which leads to high average wage costs. Successful operators must be able to provide stable, fast and extremely secure online platforms. They must also have accurate and reliable algorithms that will provide solid choices in which loan applications to approve. Competition remains high as new entrants compete fiercely through marketing campaigns to gain market share. As ...purchase to read more.

    Additional Insights for the Peer-to-Peer Lending Platforms Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Peer-to-Peer Lending Platforms Industry are

  • Ability to effectively change community behavior
  • Ability to effectively manage risk
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as Aggregate household debt and External competition in the Peer-to-Peer Lending Platforms industry impact industry performance..

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    What is the Peer-to-Peer Lending Platforms Industry?

    Companies in this industry provide peer-to-peer lending, which occurs directly between individuals and organizations without the direct intermediation of a traditional financial institution. In this industry, individuals and organizations pool their money to support the efforts of borrowers, while generating a rate of return for themselves. Crowdfunded fundraising, where collective money supports others with financial donations and without planned repayment, is not part of this industry.

    Industry Products
  • Origination fees
  • Servicing fees
  • Interest income
  • Industry Activities
  • Offering and investing in personal loans
  • Offering and investing in debt consolidation loans
  • Offering and investing in short term & bridge loans
  • Offering and investing in home improvement loans
  • Offering and investing in auto & vehicle loans
  • Offering and investing in small business loans
  • Offering and investing in green loans
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Aggregate household debt
  • External competition
  • Prime rate
  • Corporate profit
  • Number of broadband connections

  • Current Performance
  • Industry crawls, then sprints
  • Changing composition
  • Regulation remains a challenge
  • Chart: Revenue Growth

  • Industry Outlook
  • Interest rates to rise
  • Regulation change a continuing threat
  • Table: Peer-to-Peer Lending Platforms Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Peer-to-Peer Lending Platforms Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Private Equity, Hedge Funds & Investment Vehicles
  • Consumers

  • Key Selling Industries
  • Consumers
  • Finance and Insurance
  • IT Consulting
  • Software Publishing

  • Products & Services
  • Interest income
  • Origination fees
  • Servicing fees
  • Chart: Peer-to-Peer Lending Platforms Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 26 to 60
  • Consumers aged 61 and over
  • Businesses
  • Consumers aged 18 to 25
  • Chart: Major Market Segmentation for the Peer-to-Peer Lending Platforms Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesInterest expensesMarketing and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Peer-to-Peer Lending Platforms

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Peer-to-Peer Lending Platforms Industry

  • Industry Globalization
    Lending ClubProsper.comSocial Finance Inc.
  • Table: Lending Club - financial performance
  • Table: Prosper.com - financial performance
  • Table: Social Finance Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Peer-to-Peer Lending Platforms Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Peer-to-Peer Lending Platforms Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Access to credit (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Crowdfunding
  • The collective effort of individuals who pool their money via the internet to support loans requested by other people or businesses.
  • Peer-To-Peer Lending
  • Also known as P2P lending or social lending, lending money to an individual or small business by an individual, bypassing traditional financial intermediaries such as a bank.
  • Securities
  • A financial instrument such as a loan that is tradable.
  • Why buy this report?

    IBISWorld’s industry research report on Peer-to-Peer Lending Platforms provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Peer-to-Peer Lending Platforms:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Peer-to-Peer Lending Platforms market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Peer-to-Peer Lending Platforms, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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