A new report released today shows Peer-to-Peer lending is the largest growing sector of the alternative finance market.
‘Understanding Alternative Finance: ‘The UK’s Alternative Finance Industry Report 2014’ published today by Nesta, University of Cambridge and University of California, Berkeley, identified peer-to-peer business and consumer lending and invoice trading as the largest form of alternative finance on the market lending a combined £1.56 billion.
Some other key facts include:
-> The UK alternative finance market size grew to £1.74bn in 2014, a 161% increase on 2013;
-> UK alternative finance market will grow to around £4.4bn in 2015, if current growth remains buoyant; and
-> Peer-to-Peer business lending in 2014 is £749m, with Peer-to-Peer consumer lending close behind at £547m;Invoice trading accounts for £270m;
Christine Farnish, Chair of the Peer-to-Peer Finance Association, said:
“The report is exceptionally comprehensive and shows the impact and growth Peer-to-Peer lending is having on the wider market. Peer-to-Peer business lending is particularly impressive with an average growth of 250%. The paper highlights how many businesses are turning to P2P instead of the banks because of the ease and speediness of our service.
“Peer-to-Peer consumer lending is set to double by the end of 2014 too. Given the government has already set out plans to include peer-to-peer lending as part of the ISA regime, the impact could be even greater next year.”
The full report can be read here: http://www.nesta.org.uk/publications/understanding-alternative-finance-uk-alternative-finance-industry-report-2014 .
For further information please contact:
Adam Taylor, email@example.com, 0207 297 5971
Notes for Editors
About the P2PFA:
The Peer-to-Peer Finance Association is a UK trade body that maintains Rules and Operating Principles that must be followed by all Member organisations to protect the interests of all their consumer and small business customers. The P2PFA publishes quarterly figures showing industry data and the cumulative lending. On April 1 2014, peer-to-peer lending became regulated by the Financial Conduct Authority.
The P2PFA’s current membership includes Funding Circle, RateSetter, Zopa, ThinCats, LendInvest, Madiston LendLoanInvest and MarketInvoice.
For more details, please visit the website www.p2pfa.info