Marketplace (Peer to Peer) Lending Trends – AmericaAug 30, 2016 Blog Alternative Finance , Marketplace Lending , Peer-to-Peer
While capital access via alternative finance platforms remains a small part of the overall markets for debt and equity, online alternative finance addresses demands unmet by traditional sources. Banks and other established companies are feeling competitive pressures, recognizing new opportunities and reacting with technology investments and strategic partnerships.
In 2015, the Americas online alternative finance industry grew to $36.49 billion, that’s a 212% annual increase from the $11.68 billion in 2014. Between 2013 and 2015, alternative finance platforms across the Americas have delivered over $50 billion in funding to individuals and businesses, with the US market contributing 99% of the total funding volume. Marketplace consumer lending is the largest market segment in the Americas, with $25.74 billion accrued in 2015. Balance sheet consumer lending is second with $3.09 billion, followed by marketplace business lending at $2.62 billion in 2015.
Already developed in the US, real estate alternative financing models, including real estate crowdfunding and marketplace lending, have generated just over $1.26 billion for 2015. Real estate crowdfunding is also a fast-growing segment of the Latin American and the Caribbean market, generating $14.86 million of transactions volume in 2015 and a total of $19.37 million between 2013 and 2015.
In 2015 alone, online alternative business funding reached $6.88 billion in the US. In Latin America and the Caribbean, thanks to marketplace business lending, over $120 million of business funding was facilitated by online alternative finance platforms over the last three years. In 2015, online alternative business lending reached $5.61 billion.
Across the region, online alternative business funding accounted for $7.01 billion in 2015. Business finance grew at an average annual rate of 147%, starting at $1.15 billion in 2013 and reaching $2.86 billion in 2014.
The growth rate of finance provided to individuals and businesses via online alternative finance channels in the Americas accelerated between 2013 and 2015, producing a three-fold increase in transaction volume that exceeded $36 billion. You can read the full report here.