News Alternative Lending

Peer-to-Peer Lending to Pass $1 Trillion by 2025

Charles Moldow, General Partner at Foundation Capital, believes the peer-to-space will exceed the $1 trillion mark as soon as 2025.

a man in a black jacket

The alternative finance space has been rife with lofty predictions of late, but none have been quite so extravagant as Moldow’s forecast. It is certainly true that peer-to-peer lending is on a steep upward trajectory. As AltFi Data continues to remind us, growth rates across the sector are consistently staggering. Rarely does a platform’s monthly expansion rate dip below 5%. If such performance continues over a sustained period of time, perhaps scale of the kind predicted by Moldow is inevitable. And as he aptly points out – US consumers paid a massive trillion dollars in credit card interest alone throughout the 2000s. There is a stark, worldwide need for the fairness and efficiency that peer-to-peer can provide.

Moldow commented:

“Traditional lending works well. For the banks. For centuries, banking has remained fundamentally unchanged. In the simplest terms …  banks played a part in the community, and served community needs. Today, they do neither. Consolidation has created national mega-banks that are more financial mega-stores than they are pillars of the community.

“But today technology and innovation are making possible a new generation of financial services that are more affordable and more available. That’s why we believe what we’re calling marketplace lending will be a trillion dollar market by the people, for the people.”

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