The Future of P2P Lending in China

by Hua Zhang, October 16, 2013
Industry Trends
Asia-Pacific

Abstract

The P2P lending market in China has grown from a mere US$30 million in 2009 to US$940 million in 2012, and will reach US$7.8 billion in 2015.

The advent of the Internet has led to the creation of new business models in financial services, especially in the personal and small and medium enterprise segments. A prominent example is AliFinance, which has created new business models in the areas of payments, unsecured loans and risk management by leveraging the Internet.

P2P providers utilize Internet technologies to support transactions, manage risk and price loans. Leaders in this area include CreditEase, PPDAI, and my089.com.  Major financial institutions, such as Ping An Group, have also begun P2P loan services. In the report The Future of P2P Lending in China, Celent examines the market size, business model regulations, and trends in this emerging but rapidly growing market.

“The explosive growth of China’s P2P lending market will lead the CBRC to put in place more stringent risk management requirements for P2P providers,” says Hua Zhang, Analyst in Celent’s Asian Financial Services practice. “At the same time, innovation continues. P2P lenders will launch personal financial management products, and leverage technologies such as search engines, social media, and cloud computing to improve credit assessment and risk identification. We even expect P2P providers to enter into partnerships with traditional lenders.”

This report provides an overview of China’s P2P market, profiles the leading P2P providers in China, and examines the industry’s growth potential.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America (Boston)
Erica Ferguson
eferguson@celent.com
Tel.: +1 617 262 8225

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)208 870 7875

Asia (Tokyo)
Yumi Nagaoka
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Tel.: +81.3.3500.3023

Table of Contents

Executive Summary

1

Introduction

2

 

A Brief History of Managed Accounts

2

 

Advisory Programs/Accounts

2

Drivers in Wealth Management Industry

4

The State of Managed Solutions

5

 

Explaining Celent’s Overestimates

5

 

Market Trends

6

 

Continuing Barriers to Efficient Management of Fee-Based Programs

8

Platform Consolidation in Wealth Management

9

 

Business Challenges Resolved

9

 

Ongoing Challenges

12

Looking Forward

13

Leveraging Celent’s Expertise

15

 

Support for Financial Institutions

15

 

Support for Vendors

15

Related Celent Research

16

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