Recent surveys conducted by ASIC have made it clear that the peer-to-peer (P2P) lending marketplace is continuing to grow in conjunction with the increasing demand for alternative funding sources.
During the 2017-18 financial year, new P2P borrowing increased 45% to $433m, and outstanding loans were up 59% to $518m.
While these numbers have “increased significantly” from the 2016-17 figures, the data did indicate a slight slowing in the rate of investor and borrower growth, according to ASIC.
Respondents reported a total of 13,446 investors and 31,421 borrowers in the P2P space as of June 2018.
In 2017-18, a total of $352m was invested in the platforms surveyed.
The data collected also revealed that rates of default have increased to 2.9% of total loan value, up from 2.3% last year.
According to ASIC commissioner Danielle Press, “The surveys help ASIC better understand the make-up of these developing sectors and how to facilitate their growth while at the same time manage any regulatory risks they pose compared with more traditional lending and fundraising approaches.”