14th December 2017
Marketplace lending provides a source of funds to consumers or businesses made possible via financial technology.
The ability to provide funding though non traditional channels allows businesses owners and consumers to access new forms of capital that weren’t accessible a few years ago.
So just how popular is marketplace lending? The growth of this alternative lending sector continues as more investors understand the risks and feel comfortable dealing with online marketplaces.
ASIC recently published its findings on the growth of online platforms, the regulator plays a major role, ASIC annually provides a marketplace lending survey.
This survey now in its 2nd year found:-
- Total amount borrowed on lending platforms reached $300m last financial year
- The number of retail investors using the platforms has increased from 2664 users to 6851 users in the last 12 months
- The average reported default rate was 2.2%
- Loan origination fees remains the primary source of revenue for marketplace lenders.
For further information on the survey and findings click HERE.