October 16, 2014
B2B, P2P (Peer-to-Peer), B2C lending have been the most sought after financial
The P2P lending companies are paving the way to reshape the provision of finance
Some prominent players in the P2P lending space include:
The leading online credit marketplace in the U.S, Lending Club has facilitated more than $5 billion in loans and has paid more than $300 million in interest to investors
Zopa is one of the world’s oldest and one of Europe’s largest peer-to-peer lending services. It has helped people lend more than £643 million in P2P loans. More than 57,000 people use this service to lend between £10 and £1 million to credit worthy borrowers. The name of the company, Zopa stands for zone of possible agreement as it brings together borrowers looking for low rate loans with savers looking for higher interest on their savings. Zopa has also launched a reserve fund
This peer-to-peer lending marketplace has more than 2 million members. It surpassed the $2 billion mark in funded loans recently. Of this, $1 billion was funded within this year itself. On Prosper, borrowers usually list loan requests between $2000 and $35,000 and individual investors can invest
This company specializes in student loan refinancing and has surpassed the $1 billion mark in funded
Funding Circle has a solid track record with small business lending. It also has a successful tie up with the bank Santander. The company has lent in excess of £380 million to more than 5,000 businesses. Out of this amount £180 million was lent within the first half of this year. The popularity of its peer-to-peer lending business helped its revenue jump 177% last year. Over 30,000 people in UK have used the website to date. Funding Circle provides a platform where investors can browse for businesses for funding consideration. These businesses are credit assessed and approved for lending by Funding Circle.
The P2P lending marketplace is disrupting the way finance is provided to those who need it. These companies are clearly challenging large scale banks by bringing new paths to financing. Even some big players are looking to enter this space. It is a known fact that Apple had filed a patent application few years ago called Peer to peer financial
I am going to share with you something that I have been thinking of doing. I have done 3 startups so far but never a technology product startup. My best bet when that time comes would be international (cross-border) peer to peer lending using analytics based on iTunes purchase history (app, in-app, music purchases), social graph and network/device parameters to give credit scores. Imagine a guy from Sweden giving $1000 to a young entrepreneur in Charlotte ☺ without worrying about defaults. In my mind, this is a real opportunity.