Market Insights Financial Capital Raising Digital Capital Raising

Marketplace Lending (Consumer) - Colombia

Colombia

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Colombia is forecasted to reach US$139.6m in 2024.
When comparing globally, it is evident that 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 Colombia, shedding light on market-specific trends.
These indicators, alongside information from statistical agencies, trade groups, and businesses, form the basis for the Statista market projections.
Colombia's marketplace lending sector is experiencing a surge in consumer capital raising, driven by increasing demand for alternative financing options.

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

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Analyst Opinion

Marketplace lending (consumer) in Colombia has been experiencing significant growth in recent years, driven by changing customer preferences and favorable macroeconomic factors.

Customer preferences: In Colombia, consumers are increasingly turning to marketplace lending platforms as an alternative to traditional banks for accessing credit. This shift in preference can be attributed to several factors. Firstly, marketplace lending offers a faster and more streamlined application process compared to traditional banks, allowing borrowers to access funds quickly and conveniently. Additionally, marketplace lending platforms often have more flexible lending criteria, making it easier for individuals with limited credit history or lower credit scores to obtain loans. This appeals to a broader range of consumers who may have been previously underserved by traditional financial institutions.

Trends in the market: One of the key trends in the marketplace lending market in Colombia is the rise of peer-to-peer (P2P) lending platforms. These platforms connect individual borrowers directly with lenders, eliminating the need for intermediaries such as banks. P2P lending has gained popularity due to its ability to offer competitive interest rates to borrowers and attractive returns to lenders. This trend is expected to continue as more Colombians become aware of the benefits and convenience of P2P lending. Another trend in the marketplace lending market in Colombia is the increasing focus on financial inclusion. Many marketplace lending platforms in the country are targeting underserved segments of the population, such as small business owners and individuals with limited access to traditional banking services. By providing these individuals with access to credit, marketplace lending platforms are helping to bridge the financial inclusion gap in Colombia.

Local special circumstances: Colombia has a large unbanked population, with a significant portion of the population lacking access to formal financial services. This presents a unique opportunity for marketplace lending platforms to tap into a previously untapped market. By leveraging technology and innovative credit scoring models, these platforms are able to extend credit to individuals who may not have a traditional credit history. This has the potential to significantly expand the consumer lending market in Colombia.

Underlying macroeconomic factors: Colombia has experienced stable economic growth in recent years, which has contributed to the growth of the marketplace lending market. A strong economy and rising disposable incomes have increased the demand for credit, driving individuals to seek alternative sources of financing. Additionally, low interest rates in the country have made borrowing more affordable, further incentivizing consumers to turn to marketplace lending platforms. In conclusion, the marketplace lending (consumer) market in Colombia is experiencing growth due to changing customer preferences, including a shift towards faster and more convenient lending options. The rise of P2P lending platforms and a focus on financial inclusion are key trends in the market. Local special circumstances, such as a large unbanked population, present opportunities for marketplace lending platforms to expand their reach. Favorable macroeconomic factors, including stable economic growth and low interest rates, are also driving the growth of the marketplace lending market in Colombia.

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.