HomeFree Intro Crowdfunding Course

P2P Lending Statistics from Two Industry Leaders

Written by

In the past we have talked about what peer-to-peer lending is. Now I’d like to give you an idea of how fast this industry is growing.

In 2013, the Economist reported that Lending Club and Prosper (two of the largest P2P platforms in the U.S) had 98% market share. These two platforms issued $2.4 billion in loans that year – quite a leap from $871 million in 2012.

This growth hasn’t slowed down much either. In 2014, P2P lending platforms in the U.S issued approximately $5.5 billion in loans!

If you are thinking about getting involved in the P2P lending industry (as a borrower, investor, expert or even an employee) but want to learn more, here is a summary of some of the most recent statistics and analysis available:

PwC Report

PwC, a company that specializes in audit, assurance, tax, consulting services and more, published a report in February 2015 titled, Peer Pressure: How peer-to-peer lending platforms are transforming the consumer lending industry.

Peer pressure How peer-to-peer lending platforms are transforming the consumer lending industry

In this report, PwC suggests that peer-to-peer lending has become a disruptive force in consumer lending over the past few years. They noted that:

“U.S. peer-to-peer lending platforms’ origination volumes have grown an average of 84% per quarter since 2007”

PwC’s analysis indicated that by 2025 the peer-to-peer lending market could reach $150 billion or higher! These statistics suggest that peer-to-peer lending is here to stay. When it comes down to it, traditional financial institutions are going to have to choose between collaborating and competing with P2P platforms.

The report also noted that about 80% of funding on U.S. P2P platforms comes from institutional investors (banks, hedge funds or other businesses who lend money). While peer-to-peer lending is often heralded as a way for ordinary accredited investors to crowdfund loans, to individual investors it may seem like larger institutional investors are flooding the market.

PwC suggests that if you are a borrower and want to take advantage of what is offered by the peer-to-peer lending industry, you should go ahead and do so.

P2P platforms currently request only about 8 to 10 personal data elements to apply, which usually takes borrowers about 10 minutes. It only takes a few minutes for most P2P platforms to make a decision after receiving a completed application. Once the loan is approved, funding can be received as early as three days after the application date is submitted.

NSRPlatform

nsrplatform

NSRPlatform is another team that provides users with valuable marketplace summaries, analytics and charts to help you make wiser investing decisions. The group was co-founded by iconic industry leaders including Peter Renton, creator of Lend Academy and Jason Jones, creator of Lendit. The most recent information they have on Lending Club and Prosper (updated in June 2015) shows that:

  • Lending Club (founded in 2007) has funded over 180,102 loans with more than $2.74 billion in total loan volume. For investors, the average ROI is 9.36% and the average APR for borrowers is 13.16%.
  • Prosper (founded in 2009) has funded over 9002 loans with more than $120 million in total loan volume. For investors, the average ROI is 8.06% and the average APR for borrowers is 13.23%.

NSR is also a platform that allows investors to connect to their Prosper and/or Lending Club accounts and make automatic investments using the company’s proprietary algorithms that generate higher returns.

“In 2014 we became a Registered Investment Adviser and brought to market two innovative financial products: a private fund and individual managed accounts,” the NPRPlatform website describes.

To participate, all you have to do is sign up for an NSR Invest account, choose which strategy best suits you (profit maximizer, profit balancer or loss minimizer) and reach out to their passionate team if you need any help!

Conclusion

The peer-to-peer lending industry is in a state of rapid growth, as more people learn about its potential and choose to give this new way of funding loans online a try.

Just like services have popped up to help the creators of rewards-based crowdfunding campaigns ship rewards and manage their campaigns, different companies are now emerging to provide value to the P2P market. These services offer help and information for investors and borrowers so they can make more informed decisions and make the most of this new technology-based industry.

Follow me

Krystine Therriault

Journalist & Blogger at CrowdCrux
Krystine Therriault is a journalist, blogger, and the community manager for CrowdCrux. She loves learning about new trending projects and dissecting them to bring new tips and information to creators.
Follow me

Weekly Success Tips

Want to receive awesome valuable resources that will help you run a successful Kickstarter, Indiegogo, or other type of crowdfunding campaign? Join 20,000+ other readers working hard to make their dream a reality.