Industry blog, P2P-banking.com recently compiled a list of peer-to-peer loan volumes from around the world. The chart is reprinted by permission below.
These numbers are cumulative, all-time volumes since inception. More than half is from Virgin Money USA which has helped individuals put $370 million in loans together since it began as Circle Lending in 2001.
Because these companies don't all use the same model, I've revised the tables somewhat, excluding:
- Facilitators: My definition of peer-to-peer lending excludes Virgin Money and Loanback because they do not serve as matchmakers (note 1). They do play a crucial role in putting a legal framework in place for friends-and-family loans and often end up servicing the loans as well. They are more like PayPal where Prosper/Lending Club are like eBay.
- Microfinance markets: I would exclude Kiva as well. It's an awesome platform that allows U.S. citizens to loan money to third-world merchants at zero interest. A powerful tool for philanthropy, yes, but not really peer-to-peer. The same goes for MyC4 and Microplace.
So excluding the above companies, total worldwide originations are $262 million, with two-thirds of that from Prosper.
Here are the market shares of the 8 true P2P lenders that have originated more than $1 million since launch:
|Company||US$ (mil)||WW Share|
|Lending Club (US)||$20||8%|
|Money Auction (Korea)||$7.8||3%|
Source: P2P-Banking.com, 28 Oct 2008
1. This does not mean I dislike Virgin Money's business model, just that its loan volume is not comparable to the others on the list.
2. For more info on the P2P lending market, see our Online Banking Report on Person-to-Person Lending