The peer-to-peer (P2P) lending that’s enabled start-ups to take a chunk out of banking market share remains one of the fastest-growing segments in FinTech.
While the U.S. logged a relatively modest $5.5 billion in P2P loans just two years ago, some analysts believe the P2P market will reach $150 billion or higher by 2025, partly because consumers tend to perceive such lenders as offering lower interest rates, easier applications, real-time updates and faster turnarounds. The tech-savvy millennial generation is particularly drawn to FinTech solutions, especially mobile wallets, mobile money and alternative payment solutions. One study says millennials are 10 times more likely to use P2P lenders than their fellow Americans 50 and older. Read more