Marketplace Lending (Consumer) - EAEU

Total transaction value in the MarketMarketplace Lending (Consumer) market market of the EAEU is forecasted to achieve US$259.40m in 2024.
When considering a global scale, it is evident that the United States leads with a transaction value of US$28bn in 2024.
Key Market Indicators offer a comprehensive view of the social and economic landscape of the chosen region, shedding light on pertinent market-specific advancements.
These indicators, in conjunction with information from statistical bureaus, trade groups, and enterprises, form the basis for the Statista market projections.
In the EAEU, Marketplace Lending in Consumer Capital Raising is gaining traction due to favorable regulatory environment and increasing 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 EAEU is experiencing significant growth and development due to several key factors.

Customer preferences: Customers in the EAEU region are increasingly turning to marketplace lending platforms for their borrowing needs. This is driven by the convenience and accessibility of these platforms, which allow borrowers to easily access loans online without the need for traditional banks. Additionally, marketplace lending platforms often offer competitive interest rates and flexible repayment terms, which are attractive to borrowers.

Trends in the market: One major trend in the marketplace lending market in the EAEU is the increasing use of technology and data analytics to assess borrower creditworthiness. Marketplace lenders are leveraging advanced algorithms and machine learning techniques to analyze large volumes of data and make more accurate lending decisions. This allows them to offer loans to a wider range of borrowers, including those who may have been rejected by traditional banks. Furthermore, the use of technology in the lending process has improved efficiency and reduced costs for marketplace lenders, leading to more competitive loan offerings.

Local special circumstances: The EAEU region consists of several countries with diverse economic and regulatory environments. This presents both opportunities and challenges for marketplace lenders. On one hand, the region's growing middle class and increasing internet penetration provide a large pool of potential borrowers. On the other hand, marketplace lenders must navigate varying regulatory frameworks and consumer protection laws in each country. This requires them to adapt their business models and operations to comply with local regulations while still offering innovative lending solutions.

Underlying macroeconomic factors: The growth of the marketplace lending market in the EAEU is also influenced by underlying macroeconomic factors. Economic stability and GDP growth in the region have created a favorable environment for borrowing and lending. Additionally, low interest rates in many EAEU countries have made borrowing more affordable, driving demand for loans. However, it is important to note that economic conditions can vary across the region, and marketplace lenders must carefully assess the risks and opportunities in each country. In conclusion, the Marketplace Lending (Consumer) market in EAEU is growing rapidly due to customer preferences for convenience and competitive loan offerings. The use of technology and data analytics is a key trend in the market, allowing marketplace lenders to make more accurate lending decisions and improve efficiency. The diverse economic and regulatory environments in the EAEU region present both opportunities and challenges for marketplace lenders. Finally, underlying macroeconomic factors such as economic stability and low interest rates contribute to the growth of the marketplace lending market in the EAEU.

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.