New Insights Into An Evolving P2P Lending Industry

How shifts in roles and risk are shaping the industry
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At present, the financial world is undergoing a turbulent period of rapid innovation. At the center of this change, are the peer-to-peer (P2P) or “marketplace” lenders, which facilitate loan-making by bridging investors and borrowers directly through online platforms. The much talked about platforms are both creating convenience and efficiency that speak to their potential, as well as moving into markets and practices that are concerning. Many are left asking what the real risks of these companies are and if they hold long-term relevance.

As part of a collaboration between Positive Planet (Planet Finance) and Credit Suisse’s Microfinance Capacity Building Initiative, this report takes a deeper look at the underlying change in credit analytics, financial inclusion, and traditional investment schemes created by P2P’s growth and contextualizes the material impact P2P has on the industry. The research corroborates and analyzes information ranging from interviews with marketplace lending industry leaders (Lenddo, SoFi, Kiva, Ratesetter, Creditease, Jimu Box, etc) to online reports and data-collecting services tracking P2P’s growth. Through a critical review of these resources, including a detailed evaluation of China’s quasi-P2P institutions, key insights and predictions are made on the future of the industry.

About this Publication

By Aveni, T.