Market Research Survey Shows Consumers Misunderstand Peer-to-Peer Lending

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14th August 2013 13:43 - Financial Services

A recent survey undertaken by UK peer-to-peer lender Assetz Capital, has revealed that over half (53%) of consumers do not know what peer-to-peer lending is, identifying it as “a loan to a friend or associate.” Only a quarter (28%) of respondents correctly identified that peer-to-peer lending is actually a non-bank loan to a business or entrepreneur.

In addition, the survey also revealed that only one in five consumers (20%) have actually heard of peer-to-peer lending. Knowledge is more common among the higher earners, with eight in ten (82%) respondents who are earning an annual salary of more than £71,000 having come across peer-to-peer lending.

Findings also identified a gender gap when it came to basic awareness: over two fifth (62%) of men claimed to have heard of peer-to-peer lending compared to less than one in five of women (17%). However, when quizzed on the meaning of peer-to-peer lending there was little difference in knowledge as only 29% of men and 28% of women correctly identified its meaning.

Ernst and Young Item Club, a global leader in assurance, tax, transactions and advisory services, reported that peer-to-peer lending is set to increase fivefold in the coming three years, as SMEs turn to alternative methods of funding.

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