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UK leading the EU in P2P lending and crowdfunding

(Image credit: Image source: Shutterstock/Yorkman)

The UK is leading the pack when it comes to P2P lending and crowdfunding, with the rest of Europe trying to catch up, new research is suggesting.

According to the University of Cambridge’s Judge Business School, the UK is the largest alternative finance market in Europe – worth £4.9 billion. Europe is behind, the report says, but its market grew 101 per cent – at the expense of the UK.

"Europe is growing from a much lower base so you are going to see much more rapid growth," senior research manager Tania Ziegler said.

"It's slower growth in the UK but that's because we have seen consolidation, and the platforms that are active are very strong incumbents. It isn't much of a worry because it's a case of Europe catching up."

She also added that the UK "has been ahead because of innovation and a regulatory regime that has allowed innovation to grow".

The EU is being followed by France (online alternative finance market £389m), Germany and the Netherlands. Finland is at number four.

After the UK, Estonia was the next largest market for alternative finance volume per capita.

According to CityAM, P2P consumer lending is the largest portion of alternative finance in the EU, accounting for 34 per cent. P2P business lending follows, together with invoice trading, equity-based crowdfunding and reward-based crowdfunding.

Image source: Shutterstock/Yorkman