Around the world
Banking Technology published an article covering US Fintech regulation. As marketplace lending becomes more popular, especially for small businesses, regulators are becoming a larger presence. The Securities and Exchange Commission is entering the picture in an effort to safeguard borrowers and lender.
Transparency Market Research issued a report on the state of P2P lending. The researchers take a look back and summarize that “As of 2015, North America held a dominant position in the P2P market, accounting for over 43% share in the overall market.” The authors also cite China, India, Japan, and Australia as major growth areas particularly in small businesses.
The Sydney Morning Herald discussed a growing trend of consumers who are ignoring high interest credit cards when it comes to bigger purchases. “Credit card applications fell by almost 4 per cent in the March 2017 quarter compared with the same quarter last year,” remarks the author. Meanwhile, “Personal loan applications rose by 13.5 per cent over the same period, the biggest increase since the March 2005 quarter.” Consumers are finding cheaper ways to finance purchases.
PRWeb explained that investing analytics site OFF3R “revealed that just over £40 million was invested in early stage businesses in March 2017 via the leading Equity Crowdfunding platforms in the UK.” The industry continues to show robust growth as more borrowers and lenders discover the low costs and high returns.
Peer2Peer Finance News reported that the head of the British Business Bank remarked that the P2P business “is starting to make an impact” on the financing market for small businesses. Banks are starting to react but have a long way to go before catching up to the speed, ease, and low cost offered by P2P.