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Market Research Report

Alternative Lending: Industry Dynamics, Strategies & Forecasts 2019-2023

Published by Juniper Research Ltd Product code 787128
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Alternative Lending: Industry Dynamics, Strategies & Forecasts 2019-2023
Published: February 13, 2019 Content info:


Juniper's new ‘Alternative Lending’ research shows how alternative lending platforms are revolutionising the lending industry; revealing why alternative lending can be easier to apply for, faster and cheaper than traditional loans. Information is given about product innovations, strategies for alternative lending players to increase credibility in this new lending modality and strategies for traditional players to catch up with digital players. The research delivers in-depth vendor analysis, including vendor profiles, the Juniper Vendor Positioning Index and vendor cluster analysis.

Additionally, the report offers a PESTEL analysis, description of the alternative lending ecosystem, different alternative lending models, coupled with future predictions and analysis of product innovation.

The analysis covers key industry service segments, including:

  • P2P/Marketplace Lending
  • Crowdfunding

The research suite comprises of:

  • Market Trends & Opportunities (PDF)
  • 5-Year Market Sizing & Forecast Spreadsheet (PDF & Excel)

Key Features

  • Market Dynamics: Provides an extensive evaluation of the alternative lending ecosystem, covering the following elements:
    • PESTEL Analysis: Political, economic, social, technological, environmental and legal forces affecting traditional lending companies, coupled with strategies to determine how alternative lending can help to deal with these pressures.
    • Traditional vs Alternative Lending Process: In-depth analysis of the main differences between alternative and traditional loan methods.
    • Market Disruption: Investigates the emergence of new products in the alternative lending industry and future trends.
  • Vendor Analysis: Presents a comprehensive analysis of vendors; exploring their lending offers and market position:
    • Includes strategic vendor positioning and cluster analysis.
  • Juniper Positioning Index: 21 alternative lending vendors, scored and positioned on the Juniper Vendor Positioning Index.
  • Benchmark Industry Forecasts: Market forecasts for adoption, loan origination and platform revenues across key segments:
    • Total Alternative Lending Loan Origination
    • P2P/Marketplace Lending
    • Crowdfunding

Key Questions

  • 1. What are the main industry challenges and opportunities for fintech and traditional banks in the lending industry?
  • 2. What is the revenue opportunity for digital lending companies over the next 5 years?
  • 3. What is the total of loans issued through marketplace lending companies over the next 5 years?
  • 4. Will marketplace lending replace traditional lending?
  • 5. Which key vendors are better positioned to influence the market over the next 5 years?

Companies Referenced

  • Included in Vendor Positioning Index: Argo Data, Built Technologies, CU Direct, Decimal Technologies, Divido, Ellie MAE, Finastra, FIS Global, FlexxBuy, Ideal 4Finance, Juris Technologies, LendPro, Mambu, Newgen Software, Nucleus Software, Pegasystems, Roostify, Sigma Infosolutions, Symitar, Tavant Technologies, TurnKey Lender.
  • Mentioned: Affirm, Amazon, Avant, Better Mortgage, Blend, Cambridge Centre for Alternative Finance, Can Capital, Canstar, CFPB (Consumer Financial Protection Bureau), China Banking Regulatory Commission, CircleUp, Collateral, CommonBond, Credit Karma, Cross River Bank, Daric, eBay, Experian, Facebook, Faircent, FCA (Financial Conduct Authority), Funding Circle, Geldvoorelkaar, Goldman Sachs, GreenSky, IOU Financial, Jack Henry & Associates, Kabbage, Kickstarter, Klarna, Lending Club, LendingHome, LendKey, Lendy, LindInvest, Magneto, Mintos, October, Ondeck, Pave, PayPal, Peerform, Prosper, RateSetter, Shopify, SoFi, Standard & Poor, SWIFT (Society for Worldwide Interbank Financial Telecommunications), Tala, Upstart, WebBank, World Bank, Xinhehui, Younited Credit, Zopa.

Data & Interactive Forecast

Juniper's ‘Alternative Lending’ forecast suite includes:

  • Segment splits for:
    • P2P/Marketplace lending
    • Crowdfunding
  • Regional splits for 8 key regions, as well as country level data splits for:
    • Canada
    • China
    • Denmark
    • Germany
    • Norway
    • Portugal
    • Spain
    • Sweden
    • UK
    • US
  • Interactive Scenario Tool allowing users to manipulate Juniper's data for 2 different metrics.
  • Access to the full set of forecast data of 14 tables and over 1,764 datapoints.

Juniper Research's highly granular interactive Excels enable clients to manipulate Juniper's forecast data and charts to test their own assumptions using the Interactive Scenario Tool, and compare select markets side by side in customised charts and tables. IFxls greatly increase clients' ability to both understand a particular market and to integrate their own views into the model.

Table of Contents

Table of Contents

1. Key Takeaways & Strategic Recommendations

  • 1.1. Key Takeaways
    • Figure 1.1: Alternative Lending - Market Statistics & Key Takeaways
  • 1.2. Strategic Recommendations
    • Figure 1.2: Alternative Lending Market Forecast Summary

2. Alternative Lending Industry Analysis

  • 2.1. Introduction
  • 2.2. Alternative Lending
    • Figure 2.1: Alternative Lenders Core Competencies
    • Figure 2.2: Alternative Lender's Target Audience
    • Figure 2.3: UK Institutional & Individual Funding Across Alternative Lending Models in 2017
  • 2.3. PESTEL Analysis
    • Figure 2.4: PESTEL Analysis of the Lending Industry
    • 2.3.1. Political & Legal Factors
      • i. US
      • ii. China
      • iii. Europe
    • 2.3.2. Economic Factors
    • 2.3.3. Environmental Factors
    • 2.3.4. Social Factors
    • 2.3.5. Technological Factors
      • i. Benefits of Blockchain in Lending
  • 2.4. Traditional Vs Alternative Lending Process
    • Figure 2.5: Differences Between Traditional & Alternative Lending
    • 2.4.1. Alternative Lending Loan Process
      • i. Loan Application
      • ii. Loan Approval
      • iii. Funding
      • iv. Outlay
        • Figure 2.6: Alternative Lending Loan Process
    • 2.4.2. Alternative Lending Ecosystem
      • i. Alternative Lenders
      • ii. Traditional Players
      • iii. Data, Platform & Tools Providers
        • Figure 2.7: Alternative Lending Ecosystem Players*
    • 2.4.3. Alternative Lending Models
      • Case Study: The Impact of Alternative Lending on Mexican & Chilean SMEs
      • i. P2P Lending
      • ii. Invoice Trading
      • iii. Equity-based Crowdfunding
      • iv. Reward-based Crowdfunding
      • v. Juniper's View
      • i. Best Scenarios for Alternative Lending
    • 2.4.4. Securitisation
      • i. Secured & Unsecured Loans
      • ii. Organised Secondary Market For Online Loans
      • iii. Is MPL Replicating 2008's Financial Crisis ?
    • 2.4.5. Customer-centric Approach
  • 2.5. Main Alternative Lender Players
    • Table 2.8: Alternative Lending Main Players
  • 2.6. Future Predictions & Product Innovation
    • 2.6.1. Organised Secondary Market
    • 2.6.2. Traditional Banks Dilemma: In-house or Outsourcing?
    • 2.6.3. Product Innovation: Pay Later
    • 2.6.4. Product Innovation: Multi-lender Platforms
      • i. Divido
      • ii. FlexxBuy
      • iii. LendPro

3. Vendor Analysis

  • 3.1. Vendor Analysis
    • Table 3.1: Alternative Lending Vendors
    • 3.1.1. Platform Features
      • Table 3.2: Common Features of Loan Servicing Software
      • Table 3.3: Vendor's Loan Offerings
    • 3.1.2. Alternative Lending Vendor Positioning Index
      • Table 3.4: Alternative Lending Vendors Positioning Index
      • Figure 3.5: Juniper Alternative Lending Vendors Positioning Index
      • i. Inception
      • ii. Establish Brand
      • iii. Focus
    • 3.1.3. Cluster Analysis
      • Table 3.6: Cluster Analysis Group Result

4. Alternative Lending: Market Forecasts

  • 4.1. Introduction
  • 4.2. Methodology & Assumptions
    • Figure 4.1: MPL Methodology
    • Figure 4.2: Crowdfunding Methodology
  • 4.3. MPL
    • 4.3.1. Loan Origination
      • Figure & Table 4.3: Total Loan Origination Value ($m), Split by 8 Key Regions 2018-2023
    • 4.3.2. Revenue Attributable to Platform Operators
      • Figure & Table 4.4: Revenue Attributable to Platform Operators ($m), Split by 8 Key Regions 2018-2023
  • 4.4. Crowdfunding
    • 4.4.1. Total Spend on Crowdfunding Platforms
      • Figure & Table 4.5: Total Spend on Crowdfunding Platforms, from Successful Crowdfunding Projects ($m), Split by 8 Key Regions 2018-2023
    • 4.4.2. Total Revenues Taken by Crowdfunding Platforms
      • Figure & Table 4.6: Total Revenues Taken by Crowdfunding Platforms, from Successful Crowdfunding Projects ($m), Split by 8 Key Regions 2018-2023
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