Marketplace Lending (Consumer) - Australia

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Australia is projected to reach US$190.74m in 2025.
When compared globally, it is evident that the United States leads with a transaction value of US$28bn in 2025.
Key Market Indicators offer a glimpse into the social and economic landscape of Australia and offer valuable insights into specific market trends.
These indicators, combined with data from statistical offices, trade associations, and businesses, form the basis for the Statista market models.
Australia's Marketplace Lending sector is seeing a rise in alternative funding options for consumers, reshaping the Capital Raising landscape.

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)

Digital Capital Raising: market data & analysis

The Marketplace Lending (Consumer) Market in Australia is experiencing mild growth, influenced by factors such as regulatory changes, increasing consumer awareness, and a shift towards alternative financing options, which provide borrowers with greater flexibility and accessibility.

Customer preferences: Consumers in Australia are increasingly gravitating towards digital lending platforms that offer personalized loan solutions, reflecting a preference for tailored financial products. The rise of mobile technology has enabled borrowers to access funds quickly and with minimal paperwork, appealing to younger demographics who prioritize convenience. Additionally, as financial literacy improves, more individuals are exploring alternative financing options, driven by a desire for greater control over their financial decisions and a growing distrust of traditional banking institutions.

Trends in the market: In Australia, the Marketplace Lending (Consumer) market is experiencing a surge in the adoption of peer-to-peer lending platforms, which provide borrowers with competitive interest rates and flexible repayment terms. The trend is increasingly appealing to younger consumers who value efficiency and transparency in the lending process. Additionally, as digital wallets and fintech solutions become more integrated, borrowers are now able to manage their loans directly through mobile apps. This shift not only empowers consumers but also poses challenges for traditional banks, pushing them to innovate and enhance their service offerings.

Local special circumstances: In Australia, the Marketplace Lending (Consumer) market is thriving, driven by a tech-savvy population and a strong preference for digital solutions. The country's regulatory framework supports innovation while ensuring consumer protection, creating a favorable environment for peer-to-peer lending platforms. Additionally, Australia's vast geography necessitates accessible financial services for rural areas, making online lending appealing. Cultural factors, such as a focus on financial independence among younger Australians, further enhance the demand for flexible, transparent lending options, challenging traditional banking models.

Underlying macroeconomic factors: The Marketplace Lending (Consumer) market in Australia is significantly shaped by macroeconomic factors including national economic health, consumer confidence, and evolving fiscal policies. The resilience of the Australian economy, characterized by steady GDP growth and low unemployment rates, fosters a conducive environment for digital lending platforms. Additionally, global economic trends, such as low interest rates and increasing digital adoption, enhance the appeal of alternative lending solutions. Regulatory support aimed at promoting financial innovation while safeguarding consumers further strengthens market dynamics, enabling peer-to-peer lending to thrive amidst traditional banking challenges.

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 Finance 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.

Marketplace Lending (Consumer) - Australia

Capital Raised

Key Players

Average Deal Size

Global Comparison

Number of Deals

Analyst Opinion

Methodology

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