The number of retail investors in marketplace lending platforms has more than tripled in 2016-2017 since the year prior, according to ASIC.
Results from ASIC’s second annual Survey of marketplace lending providers (REP 559) has revealed a three-fold spike of investor interest in marketplace lending platforms.
Where nine marketplace lending providers reported a combined 2,664 retail investors in 2015-2016, results from the latest survey showed the number had jumped to 6,851 investors in a year.
The additional number of investors meant an extra $12 million injected into the industry, according to the survey report.
“New technology arrangements such as online platforms have allowed for investors and borrowers to be matched more easily, leading to growth in the number of investors and borrowers participating in loans via marketplace lending providers,” the report said.
Commenting on the survey results, ASIC commissioner John Price said the marketplace lending industry was growing and maturing.
“This survey helps ASIC to better understand and regulate these businesses, and to identify areas to monitor in future,” Mr Price said.
“We are very appreciative of the participation of survey respondents.”
Although the number of retail investors had grown, it was investment from wholesale investors ($112 million, or 45.9 per cent) that constituted the bulk of total investment in the platforms by dollar amount ($244 million), the report showed.
Investment from trustee investors has also more than tripled, from $23 million in June 2016 to $81 million in June 2017, adding $58 million to the industry.
The total number of investors more than doubled over the course of that year, from 3201 investors to 7768.
A UBS analysis has said that banks may have to adjust their target ROE given the current environment is not favourable to high profitability...
Cooper Investors has opened its global endowment fund to external investors, the company’s first new wholesale unit trust launched to mar...
The interest rate environment across the world is at historic low and it will most likely stay that way for years to come. ...