The key points of the embryonic new marketplace are reported as follows:
Both investors and originators agree that the standardization of [loan]data will allow for continued growth and an increased influx of capital.
Lack of liquidity in the space with no established secondary market leaves investors with little flexibility and limits rate of capital deployment.
The leading participants in the marketplace lending sector are built to withstand downturns and expectations are for the asset class to "prove durable" during times of economic stress.
Consolidation of platforms will occur during unfavorable economic conditions during which platforms will diversify product lines
The industry will continue to see evolving business models for funding
Lenders must be able to access larger and more diversified pools of capital to scale to capitalize on the demand that banks cannot satisfy.
Despite the recent concerns around increasing delinquencies and where we stand in the credit cycle, all are certain that the leading participants in the space are built to withstand downturns and, further, that the asset class will prove durable in times of economic stress."