China's fintech lending to grow 16% between 2017 and 2023

But weak regulations still slip through the cracks.

China further cements its position as the king of the fintech with its fintech lending market forecasted to grow at a compound annual growth rate (CAGR) of 16% between 2017 and 2023, according to a report by LearnBonds.com.

But the country is marred by a weak regulatory oversight as shown by the Ezubao case, the report adds.

The crackdown that followed led to a plunge in peer-to-peer services from 2,680 in 2016 to 343 three years later. Citing industry data provider Wangdaizhijia, outstanding loans also shrank to $70.4b in December 2019 from its peak of $189.2b in June 2018.

Also read: New licensing rules may wipe out P2P lending in China

Nonetheless, the industry is set to reach the $201b value in 2020, more than 25 times the size of the US market, which is the second largest in the world.

The global business peer-to-peer (P2P) market will likely hit $219b this year by value at 21.2% YoY, with the market reaching $290.1b by 2023.

P2P platforms are amongst the booming segments of the financial sector, with successfully funded alternative loans to hit $41.7m this year and $50.6m by 2023.

“The average funding per campaign for small firms has also increased significantly, from $3.441 in 2017 to $5.242 this year. The report forecasts this amount will jump to $5.726 over the next three years,” LearnBonds said.

The UK peer-to-peer industry is the third largest in the world and is forecast to hit $2.6b this year.