The un(der)banked is FinTech’s largest opportunity

in relative importance. Also interesting to note is that of the $32 million
in marketplace lending funding, $22 million, or 67%, was aimed at
companies outside the United States.
Questionable investor confidence, at least in the U.S., clearly exists for
these business models. But in assessing whether this might be a
temporary phenomenon or a true sign of maturity, we find other
indicative aspects of the market interesting.
In looking at the companies that operate within the consumer lending
subsector and utilize “nontraditional data sources,” a proxy for
marketplace lending, we notice a peak in early 2015 of new companies
entering the market (see Exhibit 15). We then look at the same
“consumer lending” and “nontraditional data sources” combination
for companies that have closed at least three funding rounds, which
is a proxy for a maturing subsector. Both figures suggest the high
growth in funding for this area may have peaked.
Exhibit 15
Marketplace lending technology within consumer banking
New companies entering market
Companies with at least three funding rounds
8
30
7
6
5
4
25
20
15
3
2
1
10
5
0
4Q
12
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
0
2006 2008 2010 2012 2014 2016
Source: Strategy& analysis
Strategy&
45