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Peer to Peer Lending Market Share

Report ID: GMI10045
Published Date: Jun 2024
Report Format: PDF

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Peer to Peer Lending Market Share

LendingClub and Prosper Marketplace held a significant share of over 12% in the peer-to-peer lending industry. LendingClub is one of the forerunners and top players in the U.S. P2P lending business. It is an online marketplace that links borrowers and investors seeking to fund personal loans. It was founded in 2006. By using technology to expedite the borrowing process, provide competitive interest rates, and expedite approval periods in comparison to traditional banks, the platform transformed the lending industry.

The secret to LendingClub's success is its powerful underwriting algorithms, which evaluate borrowers' creditworthiness by looking at a variety of factors such as income, debt-to-income ratio, and credit history.

Prosper Marketplace is a significant participant in the P2P lending market, offering a venue for consumers to participate in consumer loans that originate from its marketplace. Prosper Marketplace, like LendingClub, is an online platform that allows lending and borrowing. It provides unsecured personal loans to borrowers for a range of uses, such as debt consolidation, home repair, and medical costs.

Prosper Marketplace sets itself apart with its in-house credit scoring model and risk assessment algorithms by assessing borrower creditworthiness and determining suitable interest rates. The platform can draw in a wide range of borrowers who are looking for affordable interest rates and flexible lending terms. By distributing investment risk across several borrowers and providing options for monthly principal and interest payments, Prosper Marketplace allows investors to make investments in fractional loans.

Peer to Peer Lending Market Companies

Major players operating in the peer-to-peer lending industry are:

LendingClub
Prosper Marketplace
Funding Circle
Zopa
RateSetter
Upstart
SoFi (Social Finance)

Authors: Suraj Gujar , Deeksha Vishwakarma

Frequently Asked Questions (FAQ) :

The market size of peer to peer lending reached USD 209.4 billion in 2023 and is set to witness over 25% CAGR from 2024 to 2032, owing to the increasing acceptance of Peer-to-Peer (P2P) lending by investors and borrowers worldwide.

Peer to peer lending industry from the business loans segment is expected to register 28% CAGR from 2024-2032, due to providing companies with an alternative to traditional banks for funding, frequently with quicker approval times and more flexible terms.

North America market held over 30% share in 2023, attributed to the presence of a robust legislative framework and an established financial infrastructure that facilitate the operations of P2P lending platforms in the region.

LendingClub, Prosper Marketplace, Funding Circle, Zopa, RateSetter, Upstart, and SoFi (Social Finance), are some of the major peer to peer lending companies worldwide.