Foundation Capital has issued what may be the most profound white paper and encompassing analysis on the Peer-to-Peer (P2P) lending industry to date. On top of that, they have re-branded the industry to be called Marketplace Lending.
How Marketplace Lending Will Remake Banking As We Know It
by Charles Moldow
This article depicts the size of the lending industry at $870 Billion annually and makes the argument that marketplace lending can capture a significant portion of that:
“According to our estimates, banks, credit cards and other lending institutions generate $870B+ each year in fees and interest from over $3.2T in lending activity.”
There are all sorts of fascinating data points and charts in this paper, but the most important graphic may have been saved for the end. This is what you get if you click to apply for a consumer loan on the Wells Fargo website:
The conclusion that marketplace lending is a financial revolution and a global phenomenon may be exciting to some and scary to others. In either case, Foundation Capital has made a strong case that this industry will be something big.