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Yuliya Demyanyk, senior research economist for the Cleveland Fed, released a report, “The loan between individuals is about to grow”.

Compared to consumer loans granted by banks, peer-to-peer loans performed similar or slightly better. On average, between 2010: Q2 and 2014: Q1, 3.2% of peer-to-peer loans were in arrears, compared to 3.7% of standard consumer credit loans. During this period, peer-to-peer loans had a lower share of underperforming loans in 10 of 16 quarters.

Here are some very interesting graphs and data:

Average p2p vs consumer credit card rate

p2p performance p2p rate

Of The future of P2P a last very interesting historical graph:

Consumer-Finance-History since 1943

Circled in red are four dramatic inflection points in reverse chronology, 2010 (bailout), 2003 (structured finance hits a ceiling compared to banks), 1988 (structured finance begins to cannibalize bank consumer credit) and a mysterious event of 1946 that sidelined non-bank lenders until the arrival of structured finance.

The peer-to-peer market is currently hundreds of times smaller than the consumer credit and credit card markets. However, the data suggests that the peer-to-peer lending market will continue to grow. One reason is that the supply of funds from investors for such loans has increased.

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