By AltFi on Friday 20 December 2013
Market research firm IBISWorld has released a report revealing that US peer-to-peer lending revenues have grown by 27.6% in 2013, dwarfing the revenues of rewards-based crowdfunding.
The study was based upon the analysis of 54 active US peer-to-peer lending platforms. Revenues for peer-to-peer lending platforms have climbed by 176.6% since 2008, with revenues in 2013 alone for peer-to-peer lenders standing at $162 million.
Natalie Everett, analyst for IBISWorld, said: “The industry will benefit from rising corporate profit and aggregate household debt, both of which indicate rising demand for loans”. Everett also pointed to the benefit of peer-to-peer lenders’ ability to offer lower interest rates to borrowers through bypassing intermediaries, in suggesting that more SMEs and consumers will flock to the platforms as the prime rate for traditional loan sources increases.
Equity crowdfunding will be permitted in the US at some point in 2014. The revenues generated through crowdfunding for equity may present more of a challenge to the peer-to-peer lenders. Projects selling equity generally seek larger sums of money than rewards-based campaigns, meaning proportionately larger fees for the platform.
You can purchase the report here: http://www.ibisworld.com/cartv2/purchaseoptions.aspx