This Australian Securities and Investments Commission (ASIC) report provides an overview of marketplace lending involving the provision of financial products or services, based on the findings from ASIC’s survey of a limited cross-section of marketplace lending providers for the 2016–17 financial year.
ASIC says that marketplace lending can provide a source of funds for consumers or small to medium enterprises (SMEs) as an alternative to traditional channels. New technology arrangements such as online platforms have allowed for investors and borrowers to be matched more easily, leading to growth in the number of investors and borrowers participating in loans via marketplace lending providers. In most cases, marketplace lending arrangements involve the provision of financial services and/or credit activities that are regulated by ASIC.
One of the reasons the 2016–17 marketplace lending survey was conducted was because marketplace lending is still a relatively new technology-based business model in Australia that may offer an alternative source of funding for consumers (i.e. individuals) and SMEs to more traditional channels.
