BASINGSTOKE, England, November 14, 2016 /PRNewswire/ -- Juniper Research has found that Fintech platform revenues to support lending and financing are set to reach $10.5 billion globally by 2020, doubling the $5.2 billion expected this year. The analyst house claimed that growth would be driven by a combination of factors including:
an acceleration in P2P (peer to peer) lending;
crowdfunding becoming a viable alternative to traditional lending mechanisms;
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. TheWisdom ofCrowds 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. According to research author, Michael Larner " Platform providers need to be transparentabout how they assess firms and not just sell the tantalising potential of funding the next Facebook. We are yet to witness a blockbuster exit for investors, but a successful IPO would cement crowdfunding's foothold in the marketplace." The whitepaper, Fintech ~ Liberation or Liability, is available to download from the Juniper's website together with further details of the new research. Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.