Marketplace Lending represents a highly scalable, next generation lending approach that industry innovators are using to bring to market a wide range of specialized commercial and consumer lending products. Morgan Stanley estimates that the marketplace lending industry will reach $290 billion by 2020.
The core ingredient for a marketplace lender is the platform on which they operate. The success of the business is highly dependent on the quality and robustness of the infrastructure platform taking into consideration the processes that must be built into it, such as credit ratings, third-party bank accounts, social scoring, and document input and handling functions. As the industry goes mainstream, the competitive edge will be with those who can enter the market quickly and capture market share.