Key regions: Singapore, United States, Israel, United Kingdom, Australia
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.
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