Fintech revenues will exceed $10 billion globally by 2020

According to a new study by Juniper, titled Fintech Futures: Market Disruption, Leading Innovators & Emerging Opportunities 2016-2021, Fintech platform revenues for lending and financing will exceed $10 billion globally by 2020 doubling $5.2 billion this year. This growth can be attributed to many factors including P2P lending and crowdfunding.

The study also talks about how social media will be used as an analytical tool for investors’ background checks for their business loan applications and other loans due to lack of adequate credit bureaus.

Analysing the growth over the past few years and the study expecting revenue growth seem to indicate a promising future for the Fintech industry.

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Growth of Alternative Finance

dreamstime_m_67326564Over the past few years, tremendous growth has been made in the Fintech sector whilst disrupting the traditional forms of lending. P2P lending has been the main and fastest growing financial alternative across most regions while balance sheet lending and invoice financing are still comparatively small. The World Bank has recently estimated that the alternate finance market which is currently at $34 billion of investment could grow to $90 billion by 2020. Is this likely to be met?

Looking at the explosive growth in this industry over the past few years, can we believe the alternate finance market involving P2P lending and SME business loans to have an unabated future? Continue reading