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Key regions: United Kingdom, United States, China, Brazil, Australia
Marketplace lending (consumer) is experiencing significant growth in Ethiopia, driven by changing customer preferences and local special circumstances. This emerging trend is supported by underlying macroeconomic factors that are fueling the development of the marketplace lending industry in the country.
Customer preferences in Ethiopia are shifting towards online platforms and digital solutions for financial services. With increasing internet penetration and smartphone usage, consumers are looking for convenient and accessible ways to borrow money. Marketplace lending platforms offer a streamlined and user-friendly experience, allowing borrowers to access funds quickly and easily.
This aligns with global trends in the marketplace lending industry, where consumers are increasingly turning to online platforms for their borrowing needs. Trends in the marketplace lending market in Ethiopia reflect the growing demand for alternative financing options. Traditional banking services have limited reach in the country, particularly in rural areas where access to financial services is limited.
Marketplace lending platforms provide a viable alternative for individuals and small businesses who are unable to access traditional credit. This is driving the growth of the marketplace lending market in Ethiopia, as borrowers seek out more inclusive and accessible financial solutions. Local special circumstances in Ethiopia also contribute to the development of the marketplace lending market.
The country has a large unbanked population, with a significant portion of the population lacking access to formal banking services. Marketplace lending platforms offer an opportunity to bridge this gap by providing financial services to underserved individuals and businesses. Additionally, the informal economy is prevalent in Ethiopia, with many individuals and businesses operating outside of the formal financial system.
Marketplace lending platforms can cater to this segment of the market, providing much-needed financing options. Underlying macroeconomic factors are also driving the growth of the marketplace lending market in Ethiopia. The country has experienced sustained economic growth in recent years, with a growing middle class and increasing disposable income.
This has created a greater demand for credit and financing options, which marketplace lending platforms are able to fulfill. Additionally, the government has recognized the importance of financial inclusion and has implemented policies to promote the development of the fintech sector, including marketplace lending. In conclusion, the marketplace lending (consumer) market in Ethiopia is developing rapidly due to changing customer preferences, local special circumstances, and underlying macroeconomic factors.
The shift towards online platforms and digital solutions, coupled with the need for inclusive financial services, has created a favorable environment for marketplace lending in the country. As the marketplace lending industry continues to grow, it has the potential to significantly impact the financial landscape in Ethiopia and provide greater access to credit for individuals and businesses.
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.Mon - Fri, 9am - 6pm (EST)
Mon - Fri, 9am - 5pm (SGT)
Mon - Fri, 10:00am - 6:00pm (JST)
Mon - Fri, 9:30am - 5pm (GMT)
Mon - Fri, 9am - 6pm (EST)