{"id":195078,"date":"2016-02-09T17:03:18","date_gmt":"2016-02-09T15:03:18","guid":{"rendered":"https:\/\/www.bondora.com\/blog\/?p=2611"},"modified":"2016-02-09T17:03:18","modified_gmt":"2016-02-09T15:03:18","slug":"how-p2p-lending-platforms-are-transforming-the-consumer-lending-industry-by-pwc","status":"publish","type":"post","link":"https:\/\/goandgrow.eu\/en\/blog\/how-p2p-lending-platforms-are-transforming-the-consumer-lending-industry-by-pwc\/","title":{"rendered":"How P2P lending platforms are transforming the consumer lending industry by PwC"},"content":{"rendered":"

Is P2P lending a threat or an opportunity? The PwC report<\/a> examines how peer-to-peer lending platforms are transforming the consumer lending industry and how traditional banks fit in this picture. We made a short summary of the report.<\/p>\n

\"Bondora_P2Plending_blog\"<\/a><\/p>\n

A paradigm shift<\/strong>
\nPeer-to-peer (P2P) or marketplace lending is shaped by technological breakthroughs and demographical shifts. As developed countries experience an aging population, consumers are increasingly looking for investment products that generate higher returns than traditional savings accounts offered by banks. At the same time millennials are becoming a larger portion of the consumer loan market as they seek credit to finance major purchases or refinance their student debt. Consumers are hungry for a simplified, streamlined lending process and peer-to-peer is filling that sweet spot.<\/p>\n

A disruptive force<\/strong>
\nWhile traditional banks lend their own funds, marketplace lending platforms act as a matchmaker<\/a> between borrowers who are seeking a loan and investors who are looking to invest. This P2P lending model is growing in popularity with borrowers because of its perceived low interest rates, simplified application process and quick lending decisions.<\/p>\n

Growth potential<\/strong>
\nUS peer-to-peer lending platforms\u2019 origination volumes have grown an average of 84% per quarter since 2007. Projections for the longer-term growth of the P2P market vary considerably – with one venture capitalist projecting volume as high as $1 trillion by 2025 and the PwC analysis indicates that the market could reach higher than $150 billion by the year 2025.<\/p>\n

Options for banks: collaborate or compete?<\/strong>
\nFinancial institutions have multiple approaches to respond to the potential disruption of P2P lending. Some have already begun to make strategic decisions. PwC has outlined four possible approaches for financial institutions:<\/p>\n