eNewsletter Winter 2019
Following the hype over the past few years, it seems that marketplace lending has settled to steady growth, with new firms/platforms launching operations earlier this year and established firms diverting their services to cover new areas (i.e. litigation expenses) or gaining a banking license.
According to P2PFA (UK-based Peer-to-Peer Finance Association), the sector’s contribution to the UK economy was nearly £11bn by the end of September. “There has been increased interest from institutional investors for loans to businesses. Consumer and real estate lending markets are driving additional due diligence on platforms which enable co-investing retail lenders to benefit from loans”.
P2P, Crowdfunding, Marketplace Lending are Fintech trends that if structured carefully can greatly benefit the economy. Over the past years, several banks and Insurance firms have partnered with P2P Lending platforms to expand their portfolio and deliver more to their clients. All these are taking place in the respective context of policies, control and monitoring to ensure reliability and security for both investors and borrowers. This is progressing well given the fact that P2P Lending firms have received a banking license for transactions.
As appeared in P2P Finance News the global peer-to-peer lending market will grow to $898bn (£688bn) by 2024. The advancements in technology, low cost of operations and growth in student population will combine to fuel growth as reported by “Transparency Market Research (TMR)”. The report predicted that this will allow the P2P market to achieve a compound annual growth rate of 48.2% over the next seven years.
Profile Software is a pioneer in this field, having developed a uniquely tailored solution for this market, offering advanced lending and banking capabilities combined with investment functionality to automate, safeguard and elevate the processes of a newly formed or an established P2P Lending or Crowdfunding platform. The Marketplace Lending solution supports the full online process, including required credit checks and provides auto-invest capabilities for secondary markets and service enhancements.
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