Market Insights Financial Capital Raising Digital Capital Raising

Marketplace Lending (Consumer) - Burkina Faso

Burkina Faso

Total transaction value in the Consumer Marketplace Lending market in Burkina Faso is forecasted to achieve US$0.0 in 2024.
When considering a global context, the United States leads with a transaction value of US$26,720m in the same year.
Key Market Indicators offer a glimpse into the social and economic landscape of Burkina Faso, shedding light on pertinent market trends.
These indicators, combined with information from statistical agencies, trade bodies, and enterprises, underpin the Statista market forecasts.
Burkina Faso's Marketplace Lending sector is witnessing a surge in consumer capital raising, driven by innovative digital platforms and growing demand for alternative financing.

Key regions: United Kingdom, United States, China, Brazil, Australia

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Analyst Opinion

The Marketplace Lending (Consumer) market in Burkina Faso is experiencing significant growth and development.

Customer preferences: In Burkina Faso, consumers are increasingly turning to marketplace lending platforms as an alternative to traditional banks for their borrowing needs. This shift in preference can be attributed to several factors. Firstly, marketplace lending offers a more convenient and accessible way for consumers to access credit, especially in rural areas where access to traditional banking services may be limited. Additionally, the streamlined application and approval process of marketplace lending platforms appeals to consumers who value speed and efficiency. Lastly, marketplace lending often provides more flexible loan terms and lower interest rates compared to traditional banks, making it an attractive option for borrowers.

Trends in the market: One of the key trends in the marketplace lending market in Burkina Faso is the increasing adoption of mobile technology. With the majority of the population having access to mobile phones, marketplace lending platforms have capitalized on this opportunity by offering mobile-based loan applications and repayment options. This trend has greatly contributed to the growth of the marketplace lending market, as it allows for greater reach and convenience for borrowers. Another trend in the market is the diversification of loan products offered by marketplace lending platforms. Initially, marketplace lending in Burkina Faso focused primarily on personal loans. However, as the market has evolved, platforms have started offering a wider range of loan products, including business loans, agricultural loans, and education loans. This diversification caters to the specific needs of different borrower segments, further driving the growth of the marketplace lending market.

Local special circumstances: Burkina Faso is a country with a predominantly rural population, and this has influenced the development of the marketplace lending market. Traditional banks often face challenges in reaching rural areas due to limited physical infrastructure and high operational costs. Marketplace lending platforms, on the other hand, can leverage technology to overcome these barriers and provide financial services to underserved rural communities. This has created an opportunity for marketplace lending to flourish in Burkina Faso, as it fills a critical gap in the financial services landscape.

Underlying macroeconomic factors: The development of the marketplace lending market in Burkina Faso is also influenced by underlying macroeconomic factors. The country has experienced steady economic growth in recent years, which has led to an increase in disposable income and consumer spending. This growth has created a demand for credit, and marketplace lending platforms have emerged to meet this demand. Additionally, the government of Burkina Faso has implemented policies to promote financial inclusion and support the growth of the fintech sector, creating a favorable environment for marketplace lending to thrive. In conclusion, the Marketplace Lending (Consumer) market in Burkina Faso is developing rapidly due to customer preferences for convenience, accessibility, and favorable loan terms. The market is characterized by the increasing adoption of mobile technology, diversification of loan products, and the unique circumstances of the rural population. The growth of the marketplace lending market is also supported by underlying macroeconomic factors such as economic growth and government policies.

Methodology

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.