MS estimates 290 Bn by 2020...that is the size of 2 top 20 EMEA Bank's Balance Sheets
Marketplace lending – the new buzzword for peer-to-peer lending – is one of the fastest growing areas in fintech. Big banks are starting to muscle in on the area, and the sector has evolved from individuals who sourced loans from other individuals, into platforms that secure funding from institutions in an online marketplace for loans. Success stories include platforms such as Lending Club, On Deck and Prosper in the US and Funding Circle, RateSetter and Zopa in the UK, which enable businesses and individuals to bypass banks and secure loans directly from investors online. Underscoring the sector’s growing importance, Wall Street giant Morgan Stanley has released a 78-page research note on the sector. Here are five things the bank’s analysts think you should know about this new lending market.