Industry Trend: Social Finance

By | June 24, 2014
This entry is part 21 of 30 in the series Trends

waspit is a social banking platform targeting college students that offers social banking experiences with payments, offers, loyalty, and reviews.

The “Social Lending and Savings” section of Digital Bank notes the trend of Social Finance.

Skinner covers the following:

  • Zopa in the UK
  • smava in Germany
  • Ppdai in China
  • Prosper and Lending Club in the United States
  • RateSetter and Folk2Folk in the UK.

Examples of Social Saving include:

  • iWish from ICICI Bank in India
  • SmartyPig in the United States
  • BBVA and the Compass app.

Digital Banking also covers Social Funding and Investing.

Crowdfunding of new business start-ups and include:

  • United States: KickStarter, Indiegogo, crowdrise, razoo, MedStartr
  • UK: Funding Circle, CrowdCube, Seedrs and ThinCats.

Crowdfunding platforms raised almost $ 1.5 billion worldwide in 2011, with a growth rate of 63 per cent CAGR.

Wonga is a UK company providing online payday loans (short-term, high-cost credit).  In the US there is Cash America and Advance America.

Social Trading examples include eToro, ZuluTrade, Tradency, and StockTwits.

Deloitte observes that P2P business lending in the UK rose by 211% between 2012 and 2013.   In 2014 P2P lending accounted for £250m in UK personal loans.

Financial Times reports that the UK’s peer-to-peer lending market has tripled in size in just three years, was worth £550m by mid-2013, and will be worth £1bn by 2016 if it continues to grow at its current speed.”

More on this in Industry Trend: Unbundling of banks – Lending Club.

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  1. Pingback: Industry Trend: Unbundling of banks – Lending Club | Alan Street

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