Globally, business peer-to-peer lending is expected to be worth $241.5bn (£186.13bn) in 2021, new data has shown.
Meanwhile, the entire fintech lending industry is expected to have grown by 9.15 per cent year-on-year to reach $291.5bn by the end of 2020. Next year, the transaction value of the unified market is set to jump by 25 per cent, to be worth $335bn.
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According to data collated by BuyShares.co.uk, the Covid-19 pandemic has sparked a “considerable demand” for alternative lending options, which has helped to fuel the growth of the fintech lending market.
In 2017, the Statista Digital Market Outlook estimated that the global fintech lending market was worth $181.2bn. The transaction value of these loans rose to $267.1bn in 2019.
Business P2P loans have been particularly popular in recent years, with the total transaction value rising from $180.8bn in 2019, to $206.12bn in 2020 – a 14 per cent year-on-year increase.
By the end of 2021, P2P business loans are set to be worth more than $241.5bn globally.
However, the consumer P2P lending segment has shrunk by 1.2 per cent over the past year – reaching $85.3bn in 2020. Statista has said that it expects to see consumer lending pick up over the coming months, to reach a value of $92.7bn by the end of 2021.
The UK has been ranked as the third largest alternative lending market globally, with a transaction value of $3.91bn in 2020.
China is still the largest fintech lending market, with an 86 per cent market share. The United States is the second largest market for fintech lending, although the combined value of the business and consumer P2P loans in the US fell from $32.5bn in 2019, to $27.59bn in 2020 – a 15 per cent drop.