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Why is marketplace lending so successful? It's filling a gap that large banks have created following the 2008/2009 financial crisis. Peer to peer, now marketplace, lending platforms are using best practices from startups and fintech to get consumers the services they need at lower costs. The CEO of CommonBond wrote a great piece that provides insights on this new market.
Peer to peer or “marketplace lending” has been filling that void for the last few years, and now increasingly so: $10 billion -$15 billion in loans as of today and as much as $1 trillion by 2025. And by some estimates, this number will be even higher. For comparison, today’s entire consumer debt market is under $12 trillion. And the largest such market in the world. That’s an incredible amount of disruption, in a relatively short period of time, of an industry long thought to be un-disruptable because of the high barriers to entry, particularly because of heavy regulation and strong capital intensity.
http://www.crowdfundinsider.com/2015/01/61248-peet-to-peer-lending-is-doing-what-banks-cant/
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