How banks, professional investors and finance groups can make money from European peer-to-peer ending

January 2014 | 350 pages | ID: H7EF6C710A9EN
Ian Youngman

Abstracts

By 2015, peer-to-peer lending will be worth £50 billion a year in loans. Much has been written about why peer-to-peer lending can be good for consumers and lenders. But individuals are not the ones making or who could make big money out of this new lending sector.

The real winners are professional investors, hedge funds, venture capitalists, banks and other financial services groups by

• Investing in platforms
• Offering large loans to platforms
• Buying loans from platforms
• Selling on and securitizing packages of loans
• Secondary markets in loans
• Selling services to platforms
• Offering banking licenses to platforms
• Sending riskier loan enquiries to platforms
• Setting up their own platforms
• Transforming payday lenders into peer lending platforms
• Specialist hedge funds
• Offering loans to employees
• Venture capital investment

Peer to peer lending is an increasingly popular way of financing projects, business ideas, and personal loans.

ʻHow banks, investors and finance groups can make money from European peer-to-peer lending ʻ is a new independent report – from a writer/ researcher specializing in new financial ideas, who explains peer to peer lending in ways any intelligent non-specialist can understand.

It investigates 36 European countries for regulation, background, platforms, failed platforms, research, regulators, and need. And looks in detail at the 90 financial groups already involved in the sector. The report offers an overview on market size, types of loans, how it works, benefits, problems, background, and future.

Author Ian Youngman comments- “ Peer to peer lending gets much media coverage but this is usually from a simplistic consumer view. What is missed is how important it is becoming to professional investors, banks and other finance groups – and how their involvement is fuelling growth across Europe.”

Contents

INTRODUCTION
BANKS, PROFESSIONAL INVESTORS AND LENDERS
NOT ALL PLATFORMS ARE HAPPY WITH BANK INVOLVEMENT
VENTURE CAPITAL
INVESTING IN PLATFORMS
INVESTING IN LOANS
PLATFORMS AS SELLERS OF SERVICES TO SMALL BANKS
LOAN ORIGINATION
SECONDARY LOAN MARKETS
SPECIALIST HEDGE FUNDS
OFFERING BANKING LICENCES
SETTING UP PLATFORMS
OPPORTUNITY FOR PAYDAY LOAN COMPANIES
FACEBOOK ALTERNATIVE TO PAYDAY LOAN COMPANIES
LOANS TO COMPANY EMPLOYEES
CONFUSIONS
TYPES OF PEER- TO- PEER LENDING
HISTORY OF CROWD FUNDING
HISTORY OF PEER-TO-PEER LENDING
MARKET SIZE-GLOBAL
MARKET SIZE-USA
MARKET SIZE-EUROPE
MARKET SIZE-UK
NUMBER OF PLATFORMS
TARGET MARKET
INVESTMENT IN PLATFORMS
WORLDʼS LARGEST PEER-TO-PEER LOAN
THE NEED
BENEFITS
GLOBAL AND EUROPEAN RESEARCH
EUROPEAN COMMISSION
CREDIT SUISSE
LONDON SCHOOL OF BUSINESS AND FINANCE
WELLS FARGO
HOW IT WORKS
RISKS TO LENDERS
CHARGES TO LENDERS
LENDERS AND TAX
GETTING A LOAN
CHARGES TO BORROWERS
SELECTION OF BORROWERS
LENDERS
BAD DEBTS
HOW PLATFORMS MAKE MONEY
BRIDGING LOANS
BUSINESS LOANS
BUY TO LET
CAR LOANS
COMMERCIAL PROPERTY
ENTREPRENEURS IN DEVELOPING COUNTRIES
FARMERS
GUARANTEED PERSONAL LOANS
MORTGAGES
PAWNBROKING
PENSION FUNDS
PERSONAL LOANS
POST- GRADUATE STUDENTS
PROPERTY DEVELOPERS
SHARIAH
STUDENTS
WOMEN BUSINESS OWNERS IN AFRICA
THE NEED
WHY PEER TO PEER LENDING IS BETTER THAN A BANK LOAN
WHY BANK LENDING HAS FALLEN OFF
WHY PEER -TO -PEER LENDING IS A RISK
THREAT TO BANKS AND OTHER LENDERS
BANKS AND LENDING
FUTURE

COMPANIES INCLUDEO

BANK OF MONTREAL
BARCLAYS
CITIGROUP
CREDIT AGRICOLE
DEUTSCHE BANK
FACEBOOK
FIDELITY VENTURES
FIDOR BANK
GOOGLE
MORGAN STANLEY
OPPENHEIMER
ROTHSCHILD
SANTANDER
WEBBANK