The growth would be driven by a combination of factors including an acceleration in P2P lending, crowdfunding becoming a viable alternative to traditional lending mechanisms, and the deployment of next generation analytics platforms.
The new study, Fintech Futures: Market Disruption, Leading Innovators & Emerging Opportunities 2016-2021, argued that, in the absence of credit checking bureaus in emerging markets, applicants’ social media activity will be a deciding factor for their loan applications, with suppliers developing equivalents to credit scores so that lenders can gauge their risk exposure.
Nevertheless, the research cautioned that the process might meet with greater consumer resistance in developed markets, with many would-be applicants likely to perceive the practice as an unwarranted invasion of privacy.
Meanwhile, the research claimed that in North America and Europe crowdfunding platforms would increasingly provide opportunities for affluent individuals to obtain a stake in promising start-ups. It argued that with interest rates at record lows across the developed world, crowdfunding and P2P lending platforms offer individuals attractive alternatives to traditional investments.
However, it queried whether some of the analytics platforms would be sufficiently sophisticated to understand the nuances of distinct corporate operating environments and might not be able to provide full evaluations of their respective management teams.
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