The peer to peer industry has grown at a phenomenal rate in the last decade and many have embraced it as a welcome new channel for investors to earn healthy returns on their money. With this in mind, it is clear advisers are starting to become open to the benefits P2P can offer their clients – set rates of interest, varied terms for lending, diverse portfolios of investment opportunities to spread risk, and the potential for better interest rates than with many other forms of investment.This year the peer to peer market is likely to be transformed by the arrival of the much-anticipated Innovative Finance Isa among the leading platforms. The IFISA market is yet to come into full effect, but when it does, the amount of P2P investors could potentially double. P2P lending is becoming a new and innovative way of making investment with current technology-driven market.
The unprecedented penetration of internet across the globe that is allowing borrowers to seek funds is propelling the global peer-to-peer lending (P2P) market. Technological advancements that are permitting users to have a smooth access to interfaces that offer quick updates is also augmenting this market. The research report published by Transparency Market Research states that the opportunity in the global P2P lending market was worth US$26.16 bn in 2015. Analysts predict that the market valuation will reach US$897.85 bn by 2024, as it expands at a significant CAGR of 48.2% from 2016 to 2024.
The growth of the global P2P market is mainly being driven by growing advancements in technology that is encouraging potential consumers and existing players to make quick decisions. The low cost of operations is also supporting the growth of this market in comparison to the growth rate of conventional money lending institutions.