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ARTICLE · 10 OCTOBER 2016

Marketplace Lending | Competitive Advantages And Headwinds

Deloitte
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The long-term success of the marketplace lending model in the UK will depend on how enduring its competitive advantages are, and how well marketplace lenders (MPLs) mitigate risks.

United KingdomFinance and Banking
Margaret Doyle
Margaret Doyle
Cem Turan
Cem Turan
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Swings and roundabouts

The long-term success of the marketplace lending model in the UK will depend on how enduring its competitive advantages are, and how well marketplace lenders (MPLs) mitigate risks. In this blog, we explore some of the principal sources of competitive advantages for MPLs in the UK, and also some of the strongest headwinds facing them.

Competitive advantages of MPLs in the UK:

Customer experience

MPLs offer a superior customer experience in the following ways:

  • slick and swift application and underwriting process, with few documents required
  • fast lending decisions
  • flexible lending metrics across the board, but particularly for SMEs
  • transparency of what lender funds are being used for e.g. the ability to specify the risk you take on and to see loan books.

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