Tag Archives: platform closure/failure

Growing Alternate Lending Market

Over a year ago, I posted on an IOSCO report on the small but growing crowd-funding and P2P lending market. The University of Cambridge and EY issued a report last month which highlighted the growth in the sector putting its size at €3 billion in 2014 and predicting a growth to over €7 billion in 2015.

The UK is the largest market by far with about 75% of the deals originating from there, as the graph below from the report shows.

An interesting market, one worth keeping an eye on.

click to enlargeEuropean Alternative Financing Size

Crowd Funding and P2P Lending

There was an informative report from IOSCO on crowd funding and peer to peer lending earlier this month. The report highlights the developing nature of these type of platforms and considerable risks associated with such platforms such as default risk, platform closure/failure, fraud, illiquidity, cyber, information asymmetry, and investor inexperience. The report also outlines the different business models (of particular interest are those tested models growing in the US, China & the UK) in the approx $6 billion market and how regulation is trying to address these new models (or not in some cases).

The report lists the major players in the P2P lending market as per the exhibit below.

click to enlargeIOSCO P2P lenders

Interesting stuff.