Marketplace Lending (Consumer) - Australia & Oceania

Total transaction value in the MarketMarketplace Lending (Consumer) market market in Australia & Oceania is forecasted to reach US$192.30m in 2024.
When considering a global perspective, it is evident that the United States leads with a transaction value of US$28bn in 2024.
Key Market Indicators offer a comprehensive view of the social and economic landscape of the region, shedding light on market-specific trends.
These indicators, combined with information from statistical agencies, trade groups, and businesses, form the basis for Statista's market projections.
Australia's consumer marketplace lending sector is experiencing steady growth, attracting diverse capital sources for innovative financial products.

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 Australia & Oceania is experiencing significant growth and development.

Customer preferences: Customers in Australia & Oceania are increasingly turning to marketplace lending platforms for their consumer lending needs. This shift in preference can be attributed to several factors. Firstly, marketplace lending offers borrowers a convenient and streamlined application process, often with faster approval times compared to traditional banks. Additionally, marketplace lending platforms are known for their transparency and competitive interest rates, which are attractive to borrowers looking for more affordable loan options. Lastly, the rise of digital technology and the increasing use of mobile devices have made marketplace lending more accessible and convenient for consumers in the region.

Trends in the market: One of the key trends in the marketplace lending market in Australia & Oceania is the growth of peer-to-peer lending platforms. These platforms connect individual borrowers with individual lenders, cutting out the traditional intermediaries such as banks. This trend is driven by the desire for borrowers to access loans at lower interest rates, while also providing lenders with the opportunity to earn higher returns on their investments. Peer-to-peer lending platforms have gained popularity in Australia & Oceania due to their ability to offer competitive rates and flexible loan terms. Another trend in the marketplace lending market is the increasing focus on responsible lending practices. Marketplace lending platforms in Australia & Oceania are placing a strong emphasis on assessing borrower creditworthiness and ensuring that loans are affordable for borrowers. This trend is in response to regulatory scrutiny and the need to protect consumers from excessive debt burdens. By implementing responsible lending practices, marketplace lending platforms are able to build trust with customers and differentiate themselves in the market.

Local special circumstances: Australia & Oceania has a unique market landscape that influences the development of the marketplace lending industry. The region has a high level of internet and smartphone penetration, making it easier for consumers to access marketplace lending platforms. Additionally, the region has a strong culture of entrepreneurship and innovation, which has contributed to the growth of marketplace lending as a viable alternative to traditional banking.

Underlying macroeconomic factors: The growing marketplace lending market in Australia & Oceania can also be attributed to underlying macroeconomic factors. The region has experienced steady economic growth in recent years, leading to increased consumer confidence and demand for credit. Additionally, low interest rates in the region have made borrowing more affordable, further fueling the demand for marketplace lending. In conclusion, the Marketplace Lending (Consumer) market in Australia & Oceania is experiencing significant growth and development due to customer preferences for convenience, transparency, and competitive rates. The rise of peer-to-peer lending platforms and the focus on responsible lending practices are key trends shaping the market. The unique market landscape in Australia & Oceania, including high internet and smartphone penetration and a culture of innovation, has contributed to the growth of marketplace lending. Furthermore, underlying macroeconomic factors such as steady economic growth and low interest rates have further fueled the demand for marketplace lending in the region.

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.