Complete report on European P2P lending market spread across 52 pages and reviewing the industry with particular focus on the UK, which accounts for the overwhelming majority of lending activity.
Peer-to-peer (P2P) lending market has continued to grow rapidly across Europe as lenders seek higher returns than are available from banks and borrowers embrace willingness to lend to sectors the banks are wary of – such as small businesses in the UK – and streamlined loan approval processes. Platforms have scaled up to meet the opportunity, refining propositions, improving their credit assessment and other lending processes and strengthening their management teams. Continued growth for P2P lending market appears beyond doubt, creating further opportunities for those platforms which are able to execute their plans while avoiding lending pitfalls to keep their reputations intact.
This research includes an in-depth analysis of the relevant drivers of European P2P lending market growth – including wider trends in banking and lending, other peer-to-peer trends and the regulatory environment. A view of the outlook for the industry is based on this analysis of historical trends and drivers.
The P2P lending market is frequently mentioned in the press with comments having particular focus on the level of returns which it offers to lenders, which are generally far higher than those from conventional banks, the degree of risk that lenders are incurring to obtain these returns and, in particular, the risk that returns may be seriously impaired by future widespread default. This report explores the background to these and other issues, exploring what has happened in the European P2P lending market to key metrics such as levels of lending, returns and default rates, and the factors which lie behind trends.
Leading platforms in the UK and across Europe are identified and profiled, and their performance and business models of P2P lending market are analyzed and compared. The research sets out views on how it believes the European P2P lending market could develop in future, taking into account such trends as regulation, institutional funding and securitization and the impact on and likely responses of the banks.
This 2015 report on European P2P lending market is based on in-depth interviews carried out by us with five leading peer-to-peer lending platforms, discussions with other parties with interests in the industry, extensive research into published industry sources, in-depth analysis of the macroeconomic environment and relevant peer-to-peer lending market drivers as well as financial analysis of the accounts of and loans data provided by companies in the industry. Information from these sources has been synthesised and presented clearly and concisely with extensive use of charts and tables to illuminate points and support conclusions
