Marketplace Lending (Consumer) - Denmark

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Denmark is expected to reach US$47.43m in 2024.
When comparing globally, the United States is anticipated to achieve the highest transaction value, reaching US$28bn in 2024.
Key Market Indicators offer a glimpse into the social and economic landscape of Denmark, shedding light on market-specific trends.
These indicators, combined with data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
Denmark's Marketplace Lending sector is experiencing a surge in consumer capital raising through innovative digital platforms, reshaping the country's financial landscape.

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 has been gaining traction in Denmark in recent years, as more and more consumers are turning to online platforms to borrow money. This trend can be attributed to several factors, including customer preferences, local special circumstances, and underlying macroeconomic factors.

Customer preferences: One of the main reasons for the growth of the marketplace lending market in Denmark is the changing preferences of consumers. Traditional banks have long been the dominant players in the lending industry, but many consumers are now seeking alternative options that offer greater convenience and flexibility. Online platforms provide borrowers with easy access to loans, often with faster approval processes and more competitive interest rates. Additionally, marketplace lending platforms often cater to borrowers with lower credit scores who may have difficulty obtaining loans from traditional banks.

Trends in the market: The marketplace lending market in Denmark is also being driven by the increasing popularity of peer-to-peer lending. This model allows individuals to lend money directly to other individuals, cutting out the middleman and reducing costs for both borrowers and lenders. Peer-to-peer lending platforms have gained significant traction in Denmark, as they offer a more personalized and transparent lending experience. Furthermore, the rise of mobile technology has made it even easier for borrowers to access these platforms, further fueling the growth of marketplace lending.

Local special circumstances: Denmark has a highly digitized and tech-savvy population, which has contributed to the success of marketplace lending platforms. The country has one of the highest internet penetration rates in the world, with a large percentage of the population comfortable with conducting financial transactions online. This tech-savvy population has embraced marketplace lending as a convenient and efficient way to borrow money. Additionally, Denmark has a strong culture of trust and transparency, which aligns well with the principles of marketplace lending.

Underlying macroeconomic factors: The marketplace lending market in Denmark has also been influenced by underlying macroeconomic factors. The country has experienced a prolonged period of low interest rates, which has made borrowing more affordable for consumers. Additionally, the Danish economy has been relatively stable in recent years, with low unemployment rates and strong GDP growth. These favorable economic conditions have increased consumer confidence and encouraged borrowing activity. As a result, marketplace lending platforms have been able to attract a growing number of borrowers and investors. In conclusion, the marketplace lending market in Denmark is experiencing significant growth due to changing customer preferences, the rise of peer-to-peer lending, local special circumstances, and underlying macroeconomic factors. As more consumers seek convenient and flexible lending options, marketplace lending platforms are well-positioned to continue expanding their presence in the Danish market.

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.