Market Insights Financial Capital Raising Digital Capital Raising

Marketplace Lending (Consumer) - Cyprus

Cyprus

The country in Cyprus is projected to reach a total transaction value of US$0.0 in the MarketMarketplace Lending (Consumer) market market by 2024.
When compared globally, the United States leads with a transaction value of US$26,720m in 2024.
Key Market Indicators offer a glimpse into the social and economic landscape of Cyprus and shed light on pertinent market-specific advancements.
These indicators, in conjunction with data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
Cyprus is witnessing a growing trend in marketplace lending for consumer capital raising, attracting both local investors and international platforms.

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

Market

Region

Region comparison

Currency

Analyst Opinion

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

Customer preferences: Customers in Cyprus are increasingly turning to marketplace lending platforms for their borrowing needs. This is due to the convenience and efficiency offered by these platforms, as well as the competitive interest rates and flexible repayment terms. Borrowers appreciate the ease of the application process, which can be completed online in a matter of minutes, and the quick access to funds. Additionally, marketplace lending platforms often offer personalized loan options tailored to the specific needs of borrowers, further enhancing their appeal.

Trends in the market: One of the key trends in the marketplace lending market in Cyprus is the increasing demand for peer-to-peer (P2P) lending. P2P lending platforms connect individual lenders with borrowers, eliminating the need for traditional financial intermediaries. This trend is driven by the desire for more direct and transparent lending relationships, as well as the potential for higher returns for lenders compared to traditional savings accounts or fixed income investments. Another trend in the market is the growing popularity of marketplace lending for small business financing. Small businesses in Cyprus are often underserved by traditional banks, which may have stricter lending criteria and longer approval processes. Marketplace lending platforms offer a viable alternative for small businesses to access the funds they need to grow and expand. These platforms provide quick and efficient funding solutions, allowing small businesses to seize opportunities and overcome cash flow challenges.

Local special circumstances: The marketplace lending market in Cyprus is also influenced by the unique characteristics of the local financial landscape. The country has a relatively small banking sector, with a limited number of traditional lenders. This has created a gap in the market, which marketplace lending platforms have been able to fill. Additionally, the aftermath of the financial crisis in Cyprus has led to tighter lending standards by traditional banks, making marketplace lending an attractive alternative for borrowers who may not meet the strict requirements of traditional lenders.

Underlying macroeconomic factors: The development of the marketplace lending market in Cyprus is also influenced by underlying macroeconomic factors. The country has experienced a gradual recovery from the financial crisis, with improving economic indicators such as GDP growth and declining unemployment rates. This has created a more favorable environment for lending and borrowing, as consumers and businesses have regained confidence in the economy. Additionally, low interest rates in Cyprus have made borrowing more affordable, further fueling the demand for marketplace lending. In conclusion, the Marketplace Lending (Consumer) market in Cyprus is experiencing growth and development driven by customer preferences for convenience and competitive loan options. The increasing demand for P2P lending and small business financing, as well as the unique characteristics of the local financial landscape and underlying macroeconomic factors, are shaping the market in Cyprus. As the marketplace lending industry continues to evolve, it is expected to play an increasingly important role in the financial ecosystem of Cyprus.

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.