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State of the Market: European alternative lending near-doubled in 2019
Growth of the €6.6bn market has surpassed all expectations.
European originations among peer-to-peer and marketplace lending platforms soared by 80 per cent in 2019 to €6.6bn, up from €3.6bn the previous year, according to data from the AltFi Alternative Lending State of the Market Report 2020.
The data provided by Brismo (recently acquired by LoanClear) paints the stark difference between the UK’s mature lending platforms, which grew a moderate 10.7 per cent to £6.2bn in 2019, and Europe where the market remains in high-growth territory.
It also means that Europe appears on the verge of overtaking the UK’s peer-to-peer and marketplace lending, possibly as soon as 2020, with the combined value of the UK and EU figures being worth more than £12bn last year.
“Alternative lenders started in Europe a little after the UK,” said Rupert Taylor CEO of LoanClear.
“We are now seeing strong growth as originators begin to communicate the strong performance track records that they have developed to an audience of investors with an appetite for yield.”
Unlike the UK market however, nearly half of the European lending volume is dominated by a single player, with Latvian lending marketplace Mintos originating 45 per cent of peer-to-peer loans in 2019 worth a combined €3bn.
The caveat is that Mintos operates a loan marketplace quite unlike its rivals, where 70 other loan originators can list loans for investment, which inflates its figures as a kind of ‘P2P of P2Ps’.
Incredibly just seven years ago the European peer-to-peer and marketplace lending landscape was nearly non-existent, with just €118.9m in loans originated in 2013.
The speed at which Europe grows and continues to grow has outstripped even industry experts. Brismo’s own forecasts for 2019 predicted a halving of growth to just 47.49 per cent, far below the 80 per cent that was achieved, with all aspects of SME, Property and Consumer lending outstripping expectations.
Want to find out where the European peer-to-peer and marketplace lending sector is heading next? Find out more in AltFi’s free Alternative Lending State of the Market Report 2020.