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Financial system across the US took a beating in the aftermath of the 2008 financial crisis and American views changed overnight with regards to their financial system. In a 2014 Gallup poll, only 26 percent expressed having “‘a great deal’ or ‘quite a lot’ of confidence in banks,” down from 41 percent in 2007 and a high of 60 percent in 1979. Alternative lenders have made most of this opportunity by serving the US population with technology-driven funding. Since 2008, it has been growing at a neck-breaking pace and in 2016, US P2P market was worth a staggering $34.5 billion and it is widely expected that market will grow with the same momentum in the coming years.


MonJa Blog US Consumer Lending

            Consumer Lending Model

The marketplace consumer lending model is by far the most prevalent online alternative finance model in the US and accounts for 61% of the US market. In 2016, this model grew by 17% and generated $21.1billion in originations. But interestingly balance sheet consumer lending is also an important part of the mix with $2.9 billion in originations. The 2016 average loan size for the Marketplace/P2P Consumer Lending in the US was approximately $28,000 compared to $19,000 for Balance Sheet Consumer Lending.


MonJa Blog US Consumer Lending

Trends in the industry

Considering the size of the market and the opportunity it represents, it is imperative to understand the tailwinds for the industry. The major trends seen across the industry segment are:

Though the entire online consumer lending industry has been witnessing a steady growth in the last few years, there are few platforms that are a cut above the rest:


The alternative consumer-lending industry is on track to becoming a 100 billion dollar business in the near future. The players have become increasingly sophisticated and are partnering with banks for a win-win association. The startups bring their tech onboard and understanding of millennials to leverage the traditional bank’s low cost funding an entrenched customer base. The next few years will decide the players that dominate the industry.

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