A new report. from Nesta and the University of Cambridge highlights how the UK alternative finance sector has more than doubled in the last year and is set to grow to $4.4bn in 2015.
The report examines the growth, trends and awareness levels of the different markets that make up the rapidly growing alternative finance sector in the UK, including P2P consumer lending, P2P business lending, Crowdfunding and Company Invoicing.
Zopa was one of the platforms that provided lender and borrower data for the report.
Our CEO, Giles had this say about the report, “The Nesta report demonstrates that the alternative finance market is a rapidly growing sector by doubling in size in just 12 months. The variety of services is a positive sign of innovation in the UK as the market is expected to contribute over £4bn in 2015 to the UK economy. At Zopa we’re proud to have kick-started the P2P lending industry back in 2005 and this report highlights that P2P lending and other types of alternative finance are fast becoming mainstream activities. Our mission is to always provide great value to our customers by making money simple and fair.”
Key findings from the report:
- In 2014 the alternative finance market is expected to grow to £1.74 billion
- The market grew by 150 per cent from 2012 to 2013 and is on track to grow by 161 per cent from 2013 to 2014
- The P2P consumer lending market grew 108%
- 70 per cent of SME borrowers using P2P business lending have seen their turnover grow since secured funding with 63 per cent of them recording a growth in profit
- More than half (50%+) of borrowers had been offered a bank loan but went with a P2P lending platform
- P2B – 70% of SME borrowers have seen turnover grow and 63% report a growth in profit
- 58% are aware of some form of alternative finance but only 14% have used a platform