The Future of Marketplace Lending: Survey Says...

Cognizant P2P FIVE INSIGHTS Five Key Virtual Marketplace Lending Insights Marketplace lending platforms came about to serve borrowers who were unable to get loans from banks and other financial institutions. These platforms also provide money at lower rates of interest. They enable lenders to receive a higher return on their investments as compared with bank deposits, which today provide negligible returns. To understand the behavior of both lenders and borrowers, we surveyed approximately 11,000 U.S. consumers, roughly 701 of whom transact on marketplace lending platforms. The survey revealed five key insights for marketplace lending platforms to drive growth: 11,000 U.S. Consumers Surveyed More Avenues for Analysis Willingness to get real time updates about borrowers' performance Takeaway: Marketplace lending platforms should provide more avenues for analysis to help lenders make informed decisions. 20% No Timely inputs on borrower performance are especially valuable to virtual world 80% Yes lenders. Providing such information will help these platforms attract more lenders. Domestic Money Transfer Services Willingness to make domestic money transfer based on individual credit rating/guarantee Credit history Takeaway: 1% 51% 48% Marketplace lenders should offer domestic money transfer services. It is an Personal guarantee opportunity to add a revenue stream and extend the 4% 31% 65% value chain. INot sure Some what willing IVery willing Security Features Preferred biometric authentication method for peer-to-peer (P2P) transactions Fingerprint matching 26% Voice recognition 27% Facial recognition 47% Willingness to pay for biometric security features for P2P transactions Takeaway: Providing security features such as facial recognition and voice recognition will help marketplace lending platforms attract more borrowers and lenders. It won't cost them 13% 10% 77% No Yes Yes Have not used domestic money transfer or international remittance service either because users are more than willing to pay for these services. Are not willing to pay nominal fee for biometric security features Are willing to pay nominal fee for biometric security features More Interaction between Lenders and Borrowers Highly desired features on P2P platforms Online tools for portfolio analysis, risk calculation, etc. 24% 34% 9% Takeaway: Partnering with traditional banks Marketplace lending platforms should provide opportunities for greater interaction between lenders and borrowers; it will increase borrower comfort 23% 30% 10% Lender and borrower interaction 27% 17% 39% level, which in turn will encourage them to use these platforms even more. Branch availability of P2P lending site 26% 20% 43% Third Second First Partnership with Banks Willingness to lend on P2P platforms run by retail banks Takeaway: 26% 74% Marketplace lenders should connect with banks to provide better services. Aside from being able to trade on banks' perceived stability, the biggest advantage will be the ability for online marketplaces to leverage banks' physical networks. Lenders and borrowers have No Yes both indicated that they would prefer lending marketplaces to have physical branches. Footnote: This survey was conducted online among a nationally representative sample of approximately 11,000 U.S. consumers, roughly 701 of whom are marketplace lenders or borrowers, during February and March of 2014. © Copyright 2014, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trademarks mentioned herein are the property of their respective owners. KEEP CHALLENGINGM http://cogniz.at/MarketplaceLending 自