The Australian government and regulative officials are keenly engaged in promoting the development of Fintech. Market lending, one of the biggest sectors of Fintech, has offered a much needed new source of credit in many nations worldwide. Earlier today, the Australian Securities and Investments Commission (ASIC) released a report on the market financing market (peer to peer loaning). ASIC believes that by keeping track of Fintech they are better positioned to assess any risk as the industry develops.So what did it
say?The study covers market financing activities of 12 platforms that are managed by ASIC– so it is not comprehensive of the whole online loaning sector. For the platforms reviewed, during the 2016– 2017 monetary year the marketplace loaning market continued to grow with survey results identifying$300 million in loans written to customers and SMEs, almost double the figure for 2015– 16. While still small in contrast to some other active countries the numbers suggest strong growth.According to ASIC, there were a total of 7768 investors and 18,746 customers as at 30 June 2017– almost double previous period again.So the sector appears to be growing at a health rate. However this growth features some caveats.First, 5 participants indicated there were believed occurrences of scams and cyber security breaches. In summary, t here were 353 events or presumed events of scams, compared to 126 incidents or suspected events of scams throughout the 2015– 16 survey. There was one cyber security incident, compared to zero throughout the 2015– 16 survey. There were reports of some debtor grievances but most appeared to be small. The typical default rate was 2.2 %. ASIC Commissioner John Price launched a discuss the report saying the industry is maturing;”This study assists ASIC to much better understand and manage these businesses, and to identify locations to keep an eye on in
future. We are really pleased of the involvement of survey participants.”ASIC expects to continue with these reports as the market loaning industry grows. As the Australian Innovation Center has engaged with 36 possible market lending suppliers you can anticipate more entrants in the online financing space in the near future.The ASIC report is embedded listed below.
ASIC MPL Report 559-published-14-december-2017