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Peter RentonFounder, Lend Academy@LendAcademy
Global Overview ofMarketplace Lending
Copyright © 2017 Lend Academy
The Biggest Stories of the Past Year• Lending Club challenges• OCC Fintech Charter• Goldman Sachs launches Marcus• The first lending platform failures• Securitization market grows • Industry associations get some traction
The Year in Review - USA
Copyright © 2017 Lend Academy
The Biggest Stories of the Past Year• Brexit creates uncertainty• The FCA starts a regulatory review• The Innovative Finance ISA gets some momentum• Zopa announced its pursuit of a banking license• Lord Turner changes his tune on P2P lending
The Year in Review - UK
Copyright © 2017 Lend Academy
The Biggest Stories of the Past Year• The CBRC announces official regulation of online lending• Fintech investment in China now leads the world• Total loan volume topped 2 trillion RMB (approx. $300 billion)*• The number of P2P lending platforms dropped for the first time to 2,448*• Continued problems with fraud and scandals
The Year in Review - China
*Source: Wangdaizhijai (wdzj.com)
Copyright © 2017 Lend Academy
Three Sectors
Consumer Small Business Real Estate
Copyright © 2017 Lend Academy
The Major Players: Consumer
Lending Club $8.7 billion
Discover $4.0 billion
SoFi $3.2 billion*
Lightstream $2.3 billion
Prosper $2.2 billion
2016 $20.4 billion
US 2016 loan volume Total top five players
Source: Lend Academy* Estimated, excludes student loans
Copyright © 2017 Lend Academy
Source: deBanked
* Estimates
OnDeck $2.4 billion
PayPal Working Capital $1.5 billion*
Kabbage $1.25 billion
CAN Capital $1.1 billion*
Square Capital $798 million
2016 $7.05 billion
US 2016 loan volume Total top five players
The Major Players: Small Business
Copyright © 2017 Lend Academy
Source: Lend Academy
SoFi $1.6 billion*
LendingHome $700 million*
RealtyShares $240 million
Sharestates $189 million
PeerStreet $175 million
2016: $2.9 billion
US 2016 loan volume Total top five players
The Major Players: Real Estate
* Estimates
Copyright © 2017 Lend Academy
The Major Players: UK
Source: AltFi Data £1 = $1.25
Funding Circle $1.03 billion
Zopa $858 million
RateSetter $835 million
LendInvest $449 million
MarketInvoice $402 million
2016 $3.6 billion
UK 2016 loan volume Total top five players
Copyright © 2017 Lend Academy
China: The Largest MarketTotal 2016 Lending Volume: $300 billion
* Estimates
Lufax
CreditEase
Dianrong
Weidai
Neo Capital
Wangxin
Xinhehui
CredEx
Tuandai
Lianjia
Copyright © 2017 Lend Academy
2017: The Year of Consolidation
We have bounced back from a bad 2016:
• Focus on profitability• The “fin” is more important than the “tech”• Banks will play a major role in the future of the industry•Mergers, acquisitions and more failures•More investment from China as it continues to grow in importance
Copyright © 2017 Lend Academy
Perspective from Warren Buffett
“If past history was all that is needed to play the game of money, the richest people would be librarians.”
