The sector is on pace to surpass AltFi Data’s projections for 2018.
Some of the hype has died down, but the growth of the marketplace lending sector continues apace.
Marketplace lending platforms in both the UK and Continental Europe surpassed AltFi Data’s projections for funds disbursed in the third quarter. UK volumes came in 11 per cent ahead of the expected total in Q3, driven by higher than expected growth in SME and property lending.
Meanwhile, volumes in Europe were 10 per cent ahead of expectations, with consumer and again property lenders primarily responsible.
With these results, both the UK and European sectors are primed to beat full year expectations – meaning both will have accelerated in terms of year-on-year lending growth. This comes despite the fact that AltFi Data's projections for the fourth quarter remain unchanged.
Factoring in accelerated growth in Q3, the UK marketplace sector is now on track to hit £6bn in lending in 2018, with its European counterpart set to lend a little under €3bn.
AltFi Data (AltFi’s sister company) is an independent analytics firms focused on standardisation and verification in the lending sector. Each year, the firm projects full year volumes for the industry based on an extrapolation of historic quarterly growth rates. It does this to account for seasonal variations to lending activity.
Now in its sixth year, the AltFi London Summit returns on 18th March 2019 to 155 Bishopsgate. Last year proved to be a crucial turning point for the key players building the future of finance. Leading platforms launched oversubscribed IPOs, digital banks proliferated and mainstream financial institutions started their own disruptive propositions. With 2019 certain to be another landmark year, more questions will be asked by regulators with investor interest in disruption also poised for more rapid growth.