In November, 2015 we reported that the most comprehensive study was being conducted on marketplace lending for the Americas by the University of Cambridge. The same research center has just released their UK study of the entire alternative finance industry there. The report titled “Pushing Boundaries” was released today and was headed up by the Cambridge Centre for Alternative Finance at the University of Cambridge and Nesta. While the report shows how 2015 was all about pushing boundaries, the report proposes that 2016 is when alternative finance goes mainstream.
In total 94 companies participated and included many of the top companies in marketplace lending in the UK. The report highlighted three key themes: increasing market share, the real estate crowdfunding opportunity and fraud and malpractice fears. The full report can be viewed on KPMG’s website who also was a partner on the study. Below are a few highlights from the report:
- UK marketplace lenders funded a total of £3.2 billion, up from £1.74 billion in 2014. As the industry continues to flourish, it is expected total funding will cross £5 billion in 2016.
- Equity and debt investments via real estate crowdfunding totaled nearly £700 million. According to the report, this is the second fastest growing sector, up 295% from 2014.
- 57% of participants surveyed cited a collapse of an established platform as the biggest risk to growth in marketplace lending.
It’s great to see such a comprehensive report being published on the marketplace lending industry in the UK. It continues to be the market that leads the way in many areas including government acceptance and regulation. If you’re interested in understanding the marketplace lending landscape in the UK, I highly recommend you download the report. The data points and associated commentary dig deep into the industry and I think you will learn a great deal.