Marketplace Lending Spurs Innovations in Consumer Credit

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New Mercator Advisory Group research finds that success of alternative lending models is attracting attention, forcing banks to respond.

One of the 11 exhibits included in this report

10 years ago, the concept of marketplace lending was a quirky idea that intrigued a few venture capitalists. Today, marketplace lenders are some of the fastest growing, most innovative firms in the U.S. financial industry. Through the sophisticated application of technology, these new lenders are driving tremendous operational efficiencies and profitably fulfilling consumer lending needs that have historically been underserved by traditional banks. With an overwhelming amount of investment money and publicity flowing into the marketplace lending industry and regulatory slowly coming into focus, it is clear that this new class of financial service providers is set to fundamentally disrupt the status quo.

Mercator Advisory Group’s most recent research report, The Disruptive Potential of Marketplace Lending in the U.S. Consumer Credit Market explores what exactly that disruption will look like, both in terms of the impact to the $3.4 trillion U.S. consumer credit market as well as the broader strategic implications for established banks and credit card issuers.

“The success of marketplace lenders has captured attention,” comments Alex Johnson, Senior Analyst at Mercator Advisory Group and one of the authors of the report. “Marketplace lenders are to lending technology what Google is to self-driving cars, a wake-up call for incumbents in their industry.”

Highlights of this Research Report include:

  • Introduction to the marketplace lending model utilized by leading by the largest platforms in the U.S
  • Profiles of the two most successful marketplace lending platforms in the U.S., Lending Club and Prosper
  • Comparisons of the U.S. and European marketplace lending industries, with a focus on how U.S. firms could learn from their European counterparts
  • Analysis of the current state of the marketplace lending and its place in the broader alternative lending fintech space
  • Overviews of the current regulatory environment for marketplace lenders and likely future regulatory frameworks
  • Projected development paths for the evolution of marketplace lending platforms and an overview of the strategic implications of those development paths for industry incumbents

This report contains 27 pages and 11 exhibits.

Companies mentioned in this report include: Affirm,, AuxMoney, AvantCredit, Billfloat, BitBond, Blackhawk Investments, C2F0, Capital for Merchants, CBAC, CBW Bank, CircleBack Lending, CommonBond, Contigo Financial, Cozy, DriverUp, FairFinTech, FastPay, Financeit, FOLIOfn, FundingCircle, Genesis Financial, Green Note, GreenSky, Groundfloor, Jimubox, Kabbage, Kiva, Kreditech, Leaf, Leaseo, Lenddo, Lending Club, LendingHome, LendInvest, LendKey, LendSocial, Lendup, Lighter Capital, Millennium Trust Company, Money360, Nexkap, OnDeck Capital, Orchard, PayPal, Peerform, Prosper, Puddle, QuarterSpot, Realty Mogul, Rong360, Sequorum, SmallKnot, SocietyOne, SoFi, SpringLeaf, Square, StreetShores, Swift Capital, The Bancorp Bank, The Recievables Exchange, Think Finance, UpgradeUSA, WebBank, Wonga, YadYap, Zest Finance, and Zopa.

Members of Mercator Advisory Group’s Credit Advisory Service have access to this report as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.

For more information and media inquiries, please call Mercator Advisory Group's main line: (781) 419-1700, send email to media(at)mercatoradvisorygroup(dot)com.

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About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal

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Emily Bergeron
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