THE GLOBAL peer-to-peer lending market will grow to $898bn (£688bn) by 2024, according to new research.
The advance of technology, low cost of operations and growth in student population will combine to fuel growth, said the report by research and analytics firm Transparency Market Research (TMR).
The report predicted that this will allow the P2P market to achieve a compound annual growth rate of 48.2 per cent over the next eight years.
“The continuous process of securing loans has made way for the global P2P lending market since it has taken care of the pain of looking for various ways of borrowing money,” said the TMR report.
“This is an important factor expected to boost the market demand as small businesses are more likely to opt for P2P in order to solve their money lending and borrowing issues.”
The P2P market is benefitting from online interfaces that are simplifying the lending process for end users, according to the report.
Easy ways of borrowing and lending funds through prediction software and other such advanced technologies are also anticipated to boost the market, it added.
It also predicted strong growth opportunities, particularly in the Asia-Pacific region, where large populations will have rising loan requirement in the future.