Marketplace Lending (Consumer) - Eastern Asia

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Eastern Asia is projected to reach US$522.60m in 2024.
When compared globally, the highest transaction value is anticipated the United States (US$28bn in 2024).
Key Market Indicators offer a glimpse into the social and economic landscape of the region and offer valuable insights into market-specific trends.
These indicators, in conjunction with data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
In Eastern Asia, the marketplace lending sector in South Korea is experiencing exponential growth in consumer capital raising through innovative online platforms.

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 Eastern Asia is experiencing significant growth and development.

Customer preferences: In Eastern Asia, consumers are increasingly turning to marketplace lending platforms for their borrowing needs. This is driven by several factors, including the convenience and speed of the online application process, as well as the ability to access loans without the need for traditional collateral. Additionally, marketplace lending platforms often offer competitive interest rates compared to traditional financial institutions, making them an attractive option for borrowers.

Trends in the market: One of the key trends in the marketplace lending market in Eastern Asia is the rise of peer-to-peer (P2P) lending platforms. These platforms connect individual lenders with borrowers, cutting out the middleman and reducing the cost of borrowing. P2P lending has gained popularity in Eastern Asia due to its transparency and accessibility, allowing individuals to invest their money and earn returns through lending. Another trend in the marketplace lending market is the increasing focus on technology and innovation. Many marketplace lending platforms in Eastern Asia are leveraging advancements in technology, such as artificial intelligence and machine learning, to streamline the loan application and approval process. This not only improves efficiency but also enhances risk assessment capabilities, allowing lenders to make more informed lending decisions.

Local special circumstances: Eastern Asia is home to several countries with rapidly growing economies, such as China, Japan, and South Korea. These countries have large populations and a strong demand for credit, creating a favorable environment for marketplace lending platforms to thrive. Additionally, the region has a high level of smartphone penetration, making it easier for consumers to access and use marketplace lending platforms.

Underlying macroeconomic factors: The growth of the marketplace lending market in Eastern Asia is also influenced by underlying macroeconomic factors. For example, low interest rates in many countries in the region have encouraged borrowers to seek alternative lending options, such as marketplace lending. Additionally, the rise of the gig economy and the increasing number of self-employed individuals in Eastern Asia have created a need for flexible borrowing options, which marketplace lending platforms can provide. In conclusion, the Marketplace Lending (Consumer) market in Eastern Asia is experiencing significant growth and development. This is driven by customer preferences for convenience, competitive interest rates, and the ability to access loans without traditional collateral. The rise of P2P lending platforms and the focus on technology and innovation are key trends in the market. The favorable local special circumstances, such as the large population and high smartphone penetration, contribute to the growth of the market. Underlying macroeconomic factors, such as low interest rates and the rise of the gig economy, also play a role in driving the development of the marketplace lending market in Eastern Asia.

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.