Data shows increase in demand for alternative finance services
Data from the Cambridge Centre for Alternative Finance has shown an increase in demand for alternative finance services in the UK.
The figures showed growth across the UK’s alternative finance market, including crowdfunding, invoice trading, and marketplace lending. The date found a year-on-year rise of 43 per cent in 2016 from £3.2 billion to £4.58 billion.
While growth was slower than for 2014 to 2015, which saw a rise of 86 per cent, the data showed the UK’s alternative finance market continues to be healthy, with business marketplace lending having the biggest share of the market.
Business marketplace lending grew by 28.5 per cent from £881 million in 2015 to £1,232 million in 2016, placing it ahead of consumer marketplace lending, which previously had the biggest share.
The data showed that property lending saw the fastest growth, with a year-on-year rise of 88 per cent in 2016 to £1,147 million.
The increase in demand comes as a result of lenders such as Funding Circle having been around for a while, gaining more trust and receiving positive reviews for their services.
A separate report from BI Intelligence Senior Research Analyst Sarah Kocianski has highlighted the success of financial technology around the world.
The report explores the fintech industry in different countries and identifies individual fintech hubs as well as outlining the challenges and opportunities that are faced by each country or state. The report also provides insight into the future of the world’s fintech industry.