im so surprised, page-22

In terms of p2p lending, it's really just a matter of when, not if, these alternatives come online and cut into profits. You should not underestimate the rate at which this market can grow, it's not as though people are loyal to banks, and won't jump ship to a lower cost provider.

"US P2P platforms issued loans worth $889 million in 2012, $2.9 billion in 2013 and $6.6 billion in 2014. By 2016, P2P lending in the US will reach $32.8 billion." http://www.businesswire.com/news/ho...Peer-to-Peer-Lending-Market-U.S.#.VdqiE_mqpBc

That's a staggering growth rate, but only when it starts to plateau will we get an idea of the saturation point (I have no idea where that level might be). Lower interest rates are favorable for this sector, so for those that believe interest rates will be at historic lows for the next decade, that just fuels this competing sector.

Furthermore, these p2p lending platforms target the highest yield returns (car loans, credit card loans), the cash cows of the lending industry. Not sure anything has ventured into housing loans just yet though.