Lending Review - LAVI Hits Huge Milestone

By Sukhwinder Shoker on Tuesday 17 November 2015

Alternative Lending

Top 5 UK P2P Platforms by Market Share

Rank Platform Last 3 Month Market Share Month to Date Volume Cumulative Origination
1 Zopa 22.30% £26.1m £1163.m
2 Funding Circle 20.30% £30.m £920.2m
3 RateSetter 19.65% £27.m £886.7m
4 Market Invoice 12.15% £15.6m £565.1M
5 LendInvest 10.28% £.m £441.m

Source: www.altfidata.com                           Data correct as of: 16/11/2015

The Liberum AltFi Volume Index (UK) crossed the £5bn mark in cumulative financing originations earlier in November, a major milestone in the remarkable growth of the nascent online lending industry. To contextualise this figure, £2.4bn of the total has been added in 2015 alone, demonstrating the growth of an industry which has spanned a little over a decade. 

Sector Oct-15 Sep-15 Aug-15 Jul-15
Peer-to-Peer YoY Growth 80.70% 74.73% 69.29% 63.23%
Peer-to-Peer Consumer YoY Growth 77.51% 76.76% 72.16% 63.26%
Invoice Financing YoY Growth 78.68% 23.00% 14.48% -0.94%
Crowdfunding YoY Growth 466.42% 294.51% 144.83% 69.93%

According to the LAVI, annualised growth across sectors has accelerated in the latter half of 2015. The exception appears to be peer to peer consumer lending where Year-on-Year growth (YoY) has notably declined and fluctuated, but nevertheless has exceeded industry wide peer to peer growth. The reverse is accurate for marketplace business lenders, as shown in the table above. Significantly we can see that the acceleration in growth in invoice financing and equity crowdfunding has been little short of dramatic as we approach the closing stages of 2015.

The end of year will be significant for invoice financing, given the suppressed growth this particular sector of the wider industry endured in November and December 2014. With that said, the index on the whole registered increasing rates of growth in both months. 

Sign up for our newsletters

Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.

AltFi's new weekly US newsletter breaking down the ins and outs of America's burgeoning fintech sector. Delivered Monday 9am EST/ 6am PST.