Peer-to-Peer Lending – a $1-Trillion Marketplace

By Jeff Fortin,  CrowdFunding Beat Guest Contributor,

In 2006, Lending Club embarked on a new adventure with the matching of lenders and borrowers though and online platform, which started on rocky ground, yet has transcended into a $8.6B operating company following a successful Initial Public Offering, reaching 65% premium over issue price.

Image, alternative banking, online partners, lenders and borrowers. What started as a solely peer-to-peer model has reached into the various forms of institutional investors. The emerging space is evolving into marketplace lending.

The market reaching $1-Trillion, as projected by Foundation Capital, in available lending possibilities is only being scratched with the numerous players from unsecured lending, student loans, business loans, mortgages and the advancing area of automotive secured lending.

The marketplace offers access to funds. The marketplace offers high rates of returns for the peer-investors. The marketplace is evolving the landscape of non-banking companies emerging and operating in the space. With second place, Prosper Marketplace, followed by OnDeck, SoFi, Funding Circle, and many others operating in Canada, United Kingdom, Australia, New Zealand, and China.

Early investors in Lending Club varied with returns from 9x investment to well over 300x investment, a well done investment. The vision of peer to peer lending, or as now emerging marketplace lending is opening up opportunity for the community, mothers, fathers, brothers, sisters, business owners, students, and others to gain access to capital and loans at competitive rates from people within their community, avoiding the traditional bank.

What makes peer to peer work is transparency and honest communication with lenders and borrowers, and effective platform and guidelines for ease of use. The use of marketplace lending in the unsecured space is effective as well emerging secured marketplace lending will continue to make the industry grow. As of the end of 2014, the total capacity of marketplace lending, compared to the available need is only 3.5% of the $1-trillion available marketplace.

Success in the marketplace is a balance between retail investors and the institutional investors and high net-worth individuals. Offering retail investors access to a higher rate of return not offered to them in other forms of investing, baring higher risk – marketplace lending will grow exponentially with all successful emerging players.

Congratulations to Lending Club, the leader, and trend setter for the rest of us to follow. With continued vision and efforts the available choices.

Let’s welcome this innovative and public company, and thank them. All that follow will continue to add to the overall success and profitability of the marketplace. Next up, OnDeck, and Prosper……Well done! Great future ahead.

Written by

Tags: , , , , , ,


This RSS feed URL is deprecated, please update. New URLs can be found in the footers at [...]

NPRAfter Outcry, Crowdfunding Site Patreon Backs Off Plan To Raise ...NPRThe popular crowdfunding service Patreon has backed off plans to change its payment structure, after widespread, vocal and passionate opposition from creators and their fans. Last week, the site announced it woul [...]

EntrepreneurWhy Some Small Business Owners Are Turning to Crowdfunding to Save Their CompanyEntrepreneurMany owners of beloved local businesses, especially in pricier cities, have been forced to swallow their pride and appeal to their customers in times of crisis -- a process streamli [...]

TechCrunchHow hate speech crowdfunding outfit Hatreon crept back online ...TechCrunchIf you want to make a living creating white supremacist content, you're probably not going to do it via sites like Kickstarter and Patreon, which prohibit hate speech. Fortunately there's Ha [...]

Crowdfunding bid to cut car cover for millennialsThe TimesAn insurance start-up that claims it can reduce premiums for millennials will launch a £15m initial coin offering (ICO) next month in another sign of the growing frenzy over digital currencies. InsurePal will use the funds rais [...]

ForbesCrowdfunding Do's And Dont's From iFundWomen's Karen CahnForbesDuring our conversation, she was transparent in sharing that her first software company, VProud, failed because she “did everything backwards” and spent too much time trying to perfect the product. “Pe [...]

CoinDeskKickstarter ICO? Don't Count On It Says Crowdfunding Leader ...CoinDeskThe company most widely associated with crowdfunding, Brooklyn-based Kickstarter, has no plans to get into the initial coin offering (ICO) business. Coming in response to the news yesterday that compet [...]

TechCrunchFormer Gawker employees are crowdfunding an effort to buy Gawker.comTechCrunchWhile Univision acquired most of Gawker Media's sites last year (and renamed them as the Gizmodo Media Group), the deal didn't include Gawker itself. In fact, BuzzFeed reported last month [...]

Crowdfunding For French CastlesNPRYou too can own a French chateau, in part, anyway. Romain Delaume, CEO of Dartagnans, tells NPR's Scott Simon about a crowdfunding effort underway to preserve La Mothe-Chandeniers. SCOTT SIMON, HOST: What if I told you that for about $60, you cou [...]

CryptoCoinsNewsCrowdfunding Giant Indiegogo Looks to Make ICOs MainstreamCryptoCoinsNewsCrowdfunding platform Indiegogo has a plan to help initial coin offerings (ICOs) break into the mainstream, even as the U.S. Securities and Exchange Commission (SEC) is ramping up its oversight of [...]

CFB Finance


  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |