Global Peer-to-Peer (P2P) Lending Industry Analysis Report 2024: Regulatory Evolution and Risk Management Driving Innovations - Long-term Forecasts to 2033

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Feb 20, 2024, 21:45 ET

DUBLIN, Feb. 20, 2024 /PRNewswire/ -- The "Peer-to-Peer (P2P) Lending Global Market Report 2024" report has been added to ResearchAndMarkets.com's offering.

The peer-to-peer (p2p) lending market size has grown exponentially in recent years. It will grow from $143.54 billion in 2023 to $190.22 billion in 2024 at a compound annual growth rate (CAGR) of 32.5%. The growth observed in the historic period can be attributed to factors such as market disruption, regulatory changes, investor appetite, and global economic conditions.

The peer-to-peer (p2p) lending market size is expected to see exponential growth in the next few years. It will grow to $559.73 billion in 2028 at a compound annual growth rate (CAGR) of 31.0%. The anticipated growth in the forecast period can be attributed to a maturing regulatory environment and innovations in risk management. Major trends expected in the forecast period include the diversification of offerings, partnerships with traditional institutions, global expansion, and advancements in technology within the peer-to-peer lending industry.

The anticipated surge in digitization within the banking industry is poised to drive the growth of the peer-to-peer (P2P) lending market. Digital innovations in financial services, including mobile money and P2P lending, are reshaping the banking landscape. As reported by the European Banking Supervision in January 2022, the number of digital users has experienced a 23% increase since the onset of the pandemic, emphasizing the significant role of increasing digitization in fostering the growth of the P2P lending market.

The provision of low-interest rates by P2P lending platforms is expected to be a driving force behind the market's growth. The appeal of low-interest rates in P2P lending makes loans more attractive to borrowers, expands the customer base, attracts institutional investors, enhances risk assessment, and bolsters platform reputation. Notably, the competitive advantage created by these rates may lead to regulatory support, fostering a conducive environment for P2P lending platforms. For example, ET Money reported in October 2022 that P2P lenders offer annual interest rates ranging from 10% to 12%, outpacing traditional banks, where interest rates on 1-year fixed deposits typically hover around 7%. Consequently, the low-interest rates offered by P2P lending platforms are instrumental in propelling the growth of the P2P lending market.

A key trend gaining traction in the peer-to-peer lending market is the emergence of decentralized P2P mobile browsers. Major players in the market are increasingly adopting decentralized P2P mobile browsers to expand their market share. An illustrative example is the launch of CENO by eQualitie in March 2022. CENO, recognized as the world's first decentralized P2P mobile browser, is designed to circumvent contemporary censorship techniques and ensure access in areas facing connectivity disruptions. Operating on a peer-to-peer network and utilizing open-source Ouinet library and BitTorrent protocols, CENO provides a more reliable browsing experience that prevents external entities from forcibly deleting online content through decentralized peer-to-peer routing.

Major companies operating in the P2P lending market are actively developing new lending solutions to gain a competitive edge. Innovative lending solutions in the P2P lending sector refer to technology-driven approaches that enhance efficiency, accessibility, and risk management within a decentralized, peer-to-peer platform. An instance is the introduction of CRED Mint by CRED in August 2021. CRED, recognized for incentivizing users for timely credit card bill payments, introduced CRED Mint, allowing its 7.5 million members to engage in P2P lending with an annual interest rate of up to 9%. This initiative aims to provide members with the opportunity to invest directly in each other, emphasizing high-quality, low-risk lending with the potential for returns that outpace inflation.

North America was the largest region in the peer to peer (P2P) lending market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the peer-to-peer (p2p) lending market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the peer-to-peer (p2p) lending market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

A selection of companies mentioned in this report includes

Avant LLC.
Funding Circle
Kabbage Inc.
Lending Club Corporation
LendingTree LLC
OnDeck Capital Inc.
Prosper Funding LLC
CircleBack Lending Inc.
Social Finance Inc.
Zopa Bank Limited
Upstart Network Inc.
Commonbond Inc.
Retail Money Market Ltd.
Peerform
RateSetter
Max Crowdfund B. V.
PYT FUNDS Inc.
Rendity GmbH
ThinCats Limited
MoneyThing Capital Limited
ArchOver Limited
Landbay Partners Limited
Crowdstacker Holdings Ltd
Rebuilding Society. com Ltd.
Assetz Capital Limited
Folk2Folk Limited
PeerStreet
'EstateGuru. Co.
Grupeer Ltd.
Mintos marketplace AS

For more information about this report visit https://www.researchandmarkets.com/r/b89cb1

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