Marketplace Lending (Consumer) - Belgium

Belgium is expected to see the total transaction value in the MarketMarketplace Lending (Consumer) market market reach US$69.21m by 2024.
When comparing globally, it is evident that the United States will have the highest transaction value, projected at US$28bn in 2024.
Key Market Indicators offer a snapshot of the social and economic landscape in Belgium, shedding light on market-specific trends.
These indicators, along with information from statistical offices, trade associations, and businesses, form the basis for the Statista market models.
Belgium's marketplace lending sector is experiencing a surge in consumer capital raising, driven by innovative fintech platforms and increasing investor confidence.

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)

Marketplace lending (consumer) has been gaining momentum in Belgium in recent years, driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Belgian consumers have shown a growing interest in marketplace lending as an alternative to traditional banking channels. This is partly due to the convenience and speed offered by online platforms, which allow borrowers to access funds quickly and easily. Additionally, marketplace lending platforms often provide more flexible lending terms and lower interest rates compared to traditional banks, making them an attractive option for consumers seeking affordable credit.

Trends in the market: One of the key trends in the marketplace lending market in Belgium is the increasing popularity of peer-to-peer (P2P) lending platforms. These platforms connect individual lenders directly with borrowers, cutting out the middleman and reducing costs. P2P lending has gained traction in Belgium due to its transparency and the ability for lenders to diversify their investment portfolios. Another trend in the market is the rise of specialized marketplace lending platforms catering to specific consumer needs. For example, there are platforms that focus on providing loans for small businesses, personal loans, or loans for specific purposes such as home improvement or education. This trend reflects the growing demand for tailored lending solutions in the Belgian market.

Local special circumstances: Belgium has a highly developed banking sector, which has traditionally dominated the lending market. However, the rise of marketplace lending is challenging the traditional banking model and providing consumers with more choice and competition. This shift in the lending landscape is driven by the need for innovation and digitalization in the financial sector. Furthermore, Belgium has a high level of internet penetration and a tech-savvy population, which has contributed to the growth of online marketplace lending platforms. Consumers are increasingly comfortable with conducting financial transactions online, including applying for loans and managing their finances.

Underlying macroeconomic factors: The marketplace lending market in Belgium is also influenced by macroeconomic factors. Low interest rates in the country have made borrowing more affordable, encouraging consumers to seek credit. Additionally, the economic recovery in Belgium has led to increased consumer confidence and willingness to take on debt. Furthermore, regulatory changes and initiatives by the Belgian government have supported the growth of marketplace lending. The government has recognized the potential of marketplace lending to provide access to credit for underserved segments of the population and has implemented measures to foster innovation in the financial sector. In conclusion, the marketplace lending (consumer) market in Belgium is experiencing growth due to customer preferences for convenience and affordability, market trends such as the rise of P2P lending and specialized lending platforms, local special circumstances including the need for innovation in the banking sector, and underlying macroeconomic factors such as low interest rates and government support. This market is expected to continue developing as more consumers embrace online lending platforms and seek alternative sources of credit.

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.