The lending industry has been experiencing great shifts in its landscape. Years back, someone could not possibly obtain loans from banks and financial institutions without a credit history. But thanks to new technologies being developed by fintechs, this old way of screening has experienced a significant change.
Credits can now be available for more people, including those without a credit history. Today, fintechs can connect borrowers with lenders seamlessly with the use of advanced technologies.
P2P or peer-to-peer lending developed by fintechs enables people to obtain loans even without the presence of banks. It removes the middleman in the picture to allow a more convenient transaction of loans.
P2P lending has grown so much that according to Statista, the P2P lending as a whole reached US$54 billion in 2018. It serves everybody with a clear picture that P2P has gained a huge following from all over the world. Without a doubt, it will continue to dominate the lending industry.
European and Asian P2P Lending Scene
In the European and Asian markets, P2P has also proven its popularity, but with contrasting progress.
For the European market, P2P lending saw its rise from $0.7 billion in 2015 to $2.4 billion in 2017. But Asia tells a different story. P2P rose from $108 billion to $330 billion during the same period.
The Rise of P2P Lending in Asia
Numbers don’t lie, and P2P’s numbers in Asia are impressive. But what’s the reason behind its success?
Fintechs’ aggressive development of solutions, expansion even in remote areas, and speeding up of digitization in many areas – these are some of the key factors that pushed P2P further in the Asian market.
P2P in Singapore
When China and Singapore are pitted on the P2P arena, it might seem that China has the obvious upper hand. But nope. China may have the greatest number of players in the P2P industry (reportedly 700 out of 920 players in Asia), but Singapore still trumps the economic giant.
By frequency of requests related to P2P lending, Singapore has been able to position itself as the P2P leader in Asia.
P2P in Other Asian Countries
Other Asian countries including Malaysia and Indonesia are also taking advantage of P2P lending’s fast growth.
As of today, there’s no sign that P2P lending will stop its rise (and dominance). It will continue to change the rigid landscape of lending in many parts of the world, especially in Asia.
Also read: Advantages and Disadvantages of P2P Lending
