Marketplace Lending (Consumer) - Chile

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Chile is projected to reach US$988.30k in 2024.
When looking at a global comparison, it is evident that the highest transaction value is expected the United States (US$28bn in 2024).
Key Market Indicators offer an overview of the social and economic landscape of the selected region, shedding light on relevant market-specific trends.
These indicators, along with data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
Chile's Marketplace Lending sector is witnessing a surge in consumer capital raising, driven by innovative fintech platforms and growing investor interest.

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 Chile is experiencing significant growth and development.

Customer preferences: Chilean consumers are increasingly turning to marketplace lending platforms for their borrowing needs. This is due to several factors, including the convenience and accessibility offered by these platforms. Marketplace lending allows borrowers to easily access loans online, without the need for lengthy application processes or collateral requirements. Additionally, the competitive interest rates offered by marketplace lenders make them an attractive option for borrowers seeking affordable financing.

Trends in the market: One of the key trends in the marketplace lending market in Chile is the rise of peer-to-peer lending platforms. These platforms connect individual lenders with borrowers, cutting out traditional financial intermediaries such as banks. This trend is fueled by the growing trust in online platforms and the desire for more personalized lending experiences. Peer-to-peer lending platforms also provide an opportunity for individuals to invest their money and earn attractive returns, further driving the growth of this market segment. Another trend in the marketplace lending market in Chile is the increasing use of alternative data in the lending process. Traditional lenders typically rely on credit scores and historical financial information to assess a borrower's creditworthiness. However, marketplace lenders are leveraging technology to analyze alternative data sources, such as social media profiles and online transaction histories, to make lending decisions. This allows them to reach a wider pool of borrowers who may not have a traditional credit history, promoting financial inclusion in the country.

Local special circumstances: Chile has a well-developed financial sector, with a high level of financial inclusion and a strong regulatory framework. This provides a favorable environment for marketplace lending to thrive. Additionally, the country has a high smartphone penetration rate and widespread internet access, making it easy for consumers to access marketplace lending platforms.

Underlying macroeconomic factors: The growth of the marketplace lending market in Chile is also driven by favorable macroeconomic conditions. The country has experienced steady economic growth in recent years, with low inflation and a stable financial system. This has increased consumer confidence and encouraged borrowing activity. Additionally, the low interest rate environment in Chile has made marketplace lending an attractive alternative to traditional bank loans. In conclusion, the Marketplace Lending (Consumer) market in Chile is growing rapidly due to customer preferences for convenience and competitive interest rates. The rise of peer-to-peer lending platforms and the use of alternative data in the lending process are key trends in the market. Chile's well-developed financial sector, high smartphone penetration rate, and favorable macroeconomic conditions contribute to the growth of the marketplace lending market in the country.

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.