Marketplace Lending (Consumer) - Egypt

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Egypt is projected to reach US$24.29m in 2024.
When compared globally, it is evident that the highest transaction value is expected to be reached the United States (US$28bn in 2024).
Key Market Indicators offer a glimpse into the social and economic landscape of Egypt, providing valuable insights into market-specific trends.
These indicators, supported by data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
Egypt's marketplace lending sector is experiencing significant growth, with more consumers turning to online platforms for capital raising opportunities.

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 Egypt is experiencing significant growth and development.

Customer preferences: Egyptian consumers are increasingly turning to marketplace lending platforms as an alternative to traditional banking institutions. This is driven by the convenience and accessibility offered by these platforms. Marketplace lending allows borrowers to easily apply for loans online, often with faster approval times and more flexible terms compared to traditional banks. Additionally, marketplace lending platforms often cater to underserved segments of the population, such as individuals with limited credit history or those who do not have access to traditional financial services.

Trends in the market: One of the key trends in the marketplace lending market in Egypt is the rise of peer-to-peer (P2P) lending platforms. These platforms connect borrowers directly with individual lenders, cutting out the intermediaries typically found in traditional lending models. This not only reduces costs for borrowers, but also provides an opportunity for lenders to earn higher returns on their investments compared to traditional savings accounts or fixed-income instruments. P2P lending platforms are gaining popularity among both borrowers and lenders in Egypt, contributing to the overall growth of the marketplace lending market. Another trend in the market is the increasing adoption of mobile technology for accessing marketplace lending platforms. Egypt has a high mobile penetration rate, and many consumers prefer to use their smartphones for various financial transactions, including applying for loans. Marketplace lending platforms have recognized this trend and have developed user-friendly mobile applications to cater to the needs of mobile-savvy consumers. This has further expanded the reach and accessibility of marketplace lending in Egypt.

Local special circumstances: Egypt 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 fill the gap and provide financial services to underserved individuals. By leveraging technology and innovative credit assessment models, marketplace lending platforms can extend credit to individuals who may not meet the strict criteria imposed by traditional banks. This inclusionary approach is contributing to the growth of the marketplace lending market in Egypt.

Underlying macroeconomic factors: Egypt has been experiencing steady economic growth in recent years, which has positively impacted the marketplace lending market. As the economy expands, individuals and businesses have a greater need for financing, and marketplace lending platforms are well-positioned to meet this demand. Additionally, the government of Egypt has implemented various reforms to improve the business environment and attract foreign investment. This has created a favorable investment climate, encouraging the growth of marketplace lending platforms in the country. In conclusion, the Marketplace Lending (Consumer) market in Egypt is developing rapidly due to changing customer preferences, including the desire for convenience and accessibility. The rise of P2P lending platforms and the increasing adoption of mobile technology are key trends driving the growth of the market. The unique local circumstances, such as the large unbanked population, present opportunities for marketplace lending platforms to expand their reach. Furthermore, the underlying macroeconomic factors, including steady economic growth and government reforms, are creating a conducive environment for the marketplace lending market in Egypt.

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.