Fintech Lending to Exceed $10B/Year by 2020 Thru Crowdfunding & Social Media

Note from the Publisher:  At FintekNews, we KNOW that fintech is BIG and only getting BIGGER, in all its silos.  Today, Juniper Research released a new study – “Fintech Futures: Market Disruption, Leading Innovators & Emerging Opportunities 2016-2021” – outlining three factors that will drive future growth for the next 5 years.  They include:

  • Growth of P2P Lending;
  • Continued growth of crowdfunding as a lending alternative; and
  • Use of next gen analytics, including social media rather than credit scoring

The study has also shown that crowdfunding will increasingly provide investing opportunities, for HNWs, so wealth managers, take note!  It was also cautioned, though, that the existing analytics platforms do not yet provide deep enough info on corporate environments or management teams via these investment vehicles.  Even so – crowdfunding is only going to grow. 

“Juniper Research has found that Fintech platform revenues to support lending and financing are set to reach $10.5 billion globally by 2020, doubling the $5.2 billion expected this year……

The new study, “Fintech Futures: Market Disruption, Leading Innovators & Emerging Opportunities 2016-2021”, argued that, in the absence of credit checking bureaus in emerging markets, applicants’ social media activity will be a deciding factor for their loan applications, with suppliers developing equivalents to credit scores so that lenders can gauge their risk exposure. Nevertheless, the research cautioned that the process might meet with greater consumer resistance in developed markets, with many would-be applicants likely to perceive the practice as an unwarranted invasion of privacy.

Meanwhile, the research claimed that in North America and Europe crowdfunding platforms would increasingly provide opportunities for affluent individuals to obtain a stake in promising start-ups. It argued that with interest rates at record lows across the developed world, crowdfunding and P2P lending platforms offer individuals attractive alternatives to traditional investments.

However, it queried whether some of the analytics platforms would be sufficiently sophisticated to understand the nuances of distinct corporate operating environments and might not be able to provide full evaluations of their respective management teams.

SOURCE: Juniper Research
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