By FINTECH Books Contributor, Iain Niblock Follow: @orca_money In 2005, the founders of Zopa, the world’s first peer to peer lending (P2P) platform, identified a simple problem: borrower rates were high and inversely, saving rates were low. Consumers were losing. P2P platforms were born, connecting borrowers and lenders directly. This efficient marketplace has seen explosive growth, from a standing start in 2005 to a £3.13bn industry in 2016. Three mega trends have contributed to the growth of peer to peer lending: Mega Trend 1: The wide scale adoption of internet banking in the 00’s meant people began trusting online platforms when dealing with their finances. Mega Trend 2: Following the 2008 recession, credit decisions of traditional lenders became more stringent. P2P platforms offering a better borrower experience and wider lending criteria were able to plug the funding gap created. Mega Trend 3: Investors looking for income generating assets were driven to P2P. Average cash ISA rates fell from 5.55% in 2007 to 1.23% in 2016. The UK regulator and government also contributed to the growth of P2P establishing a suitable framework to regulate P2P. However fast the growth of P2P market adoption amongst financial advisers has been low. This will change in the coming years with the emergence of support services that allow advisers to access and assess P2P alongside traditional investments. Some firms are now committed to this challenge by developing an independent, whole-market research tool suitable for advisers. Data feeds are also being offered to incumbent research providers, allowing them to extend their asset-class coverage to P2P. The inclusion of P2P on wrap platforms will also allow advisers to retain control and crucially get paid for their advice. With suitable infrastructure, research and support, the growth of P2P will extend to the wealth management sector in the coming years.