Marketplace Lending (Consumer) - Worldwide

The MarketMarketplace Lending (Consumer) market market worldwide is projected to reach a total transaction value of US$32.55bn in 2024.
When comparing globally, the United States leads with a projected transaction value of US$28bn in 2024.
Key Market Indicators offer a snapshot of the social and economic landscape of the region, shedding light on market-specific trends.
These indicators, combined with data from statistical offices, trade associations, and businesses, form the basis for Statista's market models.
In the United States, Marketplace Lending is revolutionizing the Capital Raising market by providing alternative financing options to consumers.

Definition:

Marketplace Lending platforms offer private users the option to place requests for loans in an online marketplace to find private investors who would invest at an appropriate interest rate. These services apply a credit score and list the financial requests by intended purpose before fixing a lending rate. One or more investors can then serve the credit request. Although banks act in cooperation with the platform providers, the lending is done, in principle, without direct exposure, risk audits or the formal requirements normally associated with credit lending. This is attractive for many users because the processes are expedited, there is less demand when it comes of the borrower’s creditworthiness and the conditions are often more flexible than with traditional bank loans. Users are defined in this case as active borrowers on an online platform; applicants or investors who are only partially recorded as users are not included. The amount of outstanding, short-term installments or consumer loans recognized during the applicable year is used here as a benchmark.

Additional Information:

Key players in the market are Lending Club, Zopa, Auxmoney and Prosper.

Online marketplace for personal loan applications and private investors
Peer-to-Peer loans with interest rates depending on internal credit scoring of the platform provider

Online comparison websites for bank loans
Traditional bank loans
Loans for business purposes (see Crowdlending)

The Marketplace Lending (Consumer) market is experiencing significant growth worldwide.

Customer preferences: Customers are increasingly turning to marketplace lending platforms for their borrowing needs due to the convenience and efficiency they offer. Marketplace lenders provide borrowers with quick access to funds, often with lower interest rates than traditional banks. Additionally, the online application process and automated underwriting make it easier for borrowers to obtain loans, especially for those with less-than-perfect credit histories. This has attracted a wide range of borrowers, from millennials seeking personal loans for debt consolidation to small business owners in need of working capital.

Trends in the market: One of the key trends in the marketplace lending market is the increasing collaboration between marketplace lenders and traditional financial institutions. Many banks and financial institutions have recognized the potential of marketplace lending and have started partnering with these platforms to offer loans to their customers. This collaboration allows banks to tap into the technology and digital capabilities of marketplace lenders, while marketplace lenders can benefit from the established customer base and regulatory expertise of traditional financial institutions. Another trend in the market is the rise of peer-to-peer (P2P) lending platforms. P2P lending allows individuals to lend money directly to other individuals or small businesses, bypassing traditional financial intermediaries. This model has gained popularity due to its potential for higher returns for lenders and lower interest rates for borrowers. P2P lending platforms have also embraced innovative technologies such as blockchain and smart contracts to enhance transparency and security in lending transactions.

Local special circumstances: In the United States, the marketplace lending market has been driven by a combination of factors, including the high demand for personal loans, the presence of established marketplace lending platforms, and favorable regulatory environment. The UK marketplace lending market, on the other hand, has been influenced by the strong fintech ecosystem, government support, and the need for alternative sources of financing for small businesses. In China, the marketplace lending market has experienced explosive growth due to the large unbanked population, the rapid adoption of mobile payments, and the lack of traditional lending infrastructure in rural areas. The Chinese government has also been supportive of marketplace lending, as it provides an avenue for financing for small businesses and individuals.

Underlying macroeconomic factors: The growth of the marketplace lending market is also influenced by macroeconomic factors. In countries with low interest rates, such as the United States and the Eurozone, borrowers are more likely to seek alternative sources of financing with lower interest rates. Additionally, in countries with a large unbanked population or limited access to credit, marketplace lending platforms can fill the gap in the market and provide much-needed financing to individuals and small businesses. In conclusion, the Marketplace Lending (Consumer) market is growing worldwide due to customer preferences for convenience and efficiency, the rise of P2P lending platforms, collaboration between marketplace lenders and traditional financial institutions, and favorable macroeconomic factors. Each country has its own local special circumstances that contribute to the development of the marketplace lending market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Crowdfunding is the collective effort of a large number of individuals who network and pool small amounts of capital to finance a new or existing business venture. Each campaign is set for a goal amount of money and a fixed timeframe, each day is counted down and the money raised will be tallied up for visitors to follow its success. The size of the global crowdfunding market is growing and the largest markets are North America and Asia.