Why Should You Care the Peer Lending Market is Growing Quickly?
Consumer interest fuels peer lending growth
As a lender, the accelerating adoption of the “social banking” model is important to you, it means higher volumes of people looking to borrow money.
Not all of those people entering the market will be low-risk investments, in fact many of them will be the opposite. However, as the total size of the population grows so will the number of borrowers in each credit category.
The more people there are looking to borrow money, the more options you’ll have as a lender. The firm Gartner Research made some promising projections recently:
“… social banking platforms will have captured 10 per cent of the available worldwide market for retail lending and financial planning by 2010. And the analyst says venture capital investment in financial social networks such as Zopa, Prosper and Lending Club illustrate increasing consumer interest”
If these percentages hold up the number of borrowers will multiply, providing new opportunities for lenders. As these opportunities become apparent, it’s likely that additional lenders will also come into the marketplace to meet the loan demand so fine tune your lending skills now.
Source: Knowledge.Computing.co.uk: Social networking to test traditional banking model
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