ASIC survey of marketplace lending providers

ASIC has published Report 617 Survey of marketplace lending providers: 2017–18 which gives an overview of marketplace lending platforms structured as managed investment schemes.

The report is based on the findings from ASIC’s survey of 13 marketplace lending providers for the 2017–18 financial year.

Key findings from the 2017–18 survey relating to investment included:

• the surveyed marketplace lending sector now holds more than half a billion dollars in funds under management;
• The number of retail investors increased to 12,243 as at 30 June 2018, up from 6,851 as at 30 June 2017 and 2,664 as at 30 June 2016; and
• retail investors have invested a total of $83 million in the platforms.

Key findings from the 2017–18 survey relating to borrowing included:
• both the amount borrowed and number of borrowers from marketplace lending operators grew strongly, although the rate of growth has moderated from the 2016–17 survey;
• the percentage of all loans that were in default on 30 June 2018 was 2.9%, up from 2.2% in the 2016–17 survey; and
• loan origination fees contributed 67% of the total revenue of marketplace lending operators, down from around 80% over the past two surveys.

The report also includes a section on new business models.

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