Could this phenomenon be heading to the US and the UK? The Nesta Report on the Rise of Future Finance (December 2013) showed that the total UK alternative finance market grew by a staggering 91% in 2013 from £492m to £939m with a 3 year CAGR of 75%.
Could it all come to a grinding halt if monetary policy tightens in the UK and US?
The shift is also an early warning that rising interest rates could pose problems for the sector in the US and Europe, where P2P lending has expanded rapidly in recent years as banks scaled back their lending. In China, P2P companies lend to some of the country’s riskiest borrowers, so they were among the first to face defaults as monetary conditions tightened.