Marketplace Lending (Consumer) - Argentina

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Argentina is expected to reach US$51.15m in 2024.
When compared globally, the United States leads with a projected transaction value of US$28bn in 2024.
Key Market Indicators offer a glimpse into the social and economic landscape of Argentina, shedding light on market-specific trends.
This data, combined with information from statistical agencies, trade organizations, and businesses, forms the basis for Statista market projections.
Argentina's Marketplace Lending sector is booming, with a surge in consumer capital raising through innovative online platforms.

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 in Argentina is experiencing significant growth and development.

Customer preferences: In Argentina, consumers are increasingly turning to marketplace lending platforms for their borrowing needs. This is primarily driven by the convenience and accessibility offered by these platforms. Marketplace lending allows borrowers to easily access loans online, without the need for lengthy paperwork or traditional banking processes. Additionally, marketplace lending platforms often offer competitive interest rates and flexible repayment terms, making them an attractive option for borrowers.

Trends in the market: One of the key trends in the marketplace lending market in Argentina is the growth of peer-to-peer lending platforms. These platforms connect individual lenders with borrowers, cutting out the middleman and reducing costs for both parties. This trend is driven by the increasing trust and confidence in online lending platforms, as well as the desire for borrowers to have more control over their borrowing experience. Another trend in the market is the rising popularity of marketplace lending for small business loans. Small businesses in Argentina often face challenges in accessing traditional bank loans due to strict lending criteria and lengthy approval processes. Marketplace lending platforms provide an alternative source of funding for these businesses, allowing them to access the capital they need to grow and expand.

Local special circumstances: Argentina has a large unbanked population, with many individuals and businesses lacking access to traditional banking services. This presents a unique opportunity for marketplace lending platforms to fill this gap and provide financial services to those who are underserved by traditional banks. The convenience and accessibility of online lending platforms make them particularly well-suited to reach this untapped market.

Underlying macroeconomic factors: The growth of the marketplace lending market in Argentina is also influenced by underlying macroeconomic factors. The country has experienced periods of economic instability and high inflation in recent years, which has led to a decrease in lending from traditional banks. This has created a demand for alternative sources of financing, such as marketplace lending, which can provide more flexible and accessible loans. In conclusion, the Marketplace Lending (Consumer) market in Argentina is growing rapidly, driven by customer preferences for convenience and accessibility, as well as local special circumstances such as a large unbanked population. The rise of peer-to-peer lending platforms and the increasing popularity of marketplace lending for small business loans are key trends in the market. Additionally, underlying macroeconomic factors, such as economic instability and high inflation, have contributed to the growth of marketplace lending as an alternative source of financing in Argentina.

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.