Is the rise of the peer-to-peer (p2p) lending platform analogous to the rise of the online brokerage in the 1990s? This article talks about what p2p lending will look like if it follows the same growth trajectory as the online brokerages 20 years ago.
In the last year or so, much has been written about the marketplace (P2P) lending industry (see reports by investment bank Liberum, venture capitalist Charles Moldow, the Federal Reserve, The Capco Institute Journal of Financial Transformation, and our own Orchard Blog, to name just a few). These sources are insightful and useful for those interested in learning more about the marketplace (P2P) lending phenomenon. All forecast or note robust industry growth. The exuberance and sanguine forecasts remind me of a former fin-tech revolution in online brokerage in the 1990s. The quotation (often attributed to Mark Twain) “history never repeats itself, but it rhymes” seems particularly relevant: are there echoes of online brokerage in these early stages of marketplace lending?