LONDON: The total value of business loans provided by alt-fi platforms in the United Kingdom projects to reach L10 Billion ($15 Billion) by 2020, according to a report commissioned by global fin-tech provider Fiserv.
Even though they are responsible for 43 percent of all U.K. private sector turnover, SMEs still encounter a challenging credit market.
Government post-recession efforts to boost lending to SMEs have not had much effect so far, yet the P2B sector has managed to gain a foothold. The report estimates P2B provided £850 million in new credit flow last year and £1.2 billion overall, a 6000 percent increase since 2011. Crowdfunding contributed L310 million in 2013.
While those growth projections may impress, they could grow if the industry does a good job of letting small business owners they exist. Almost 60 percent of respondents said they did not know how to find an alternative finance provider.