Market Insights Financial Capital Raising Digital Capital Raising

Marketplace Lending (Consumer) - Europe

Europe

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Europe is forecasted to reach US$3.20bn in 2024.
When compared globally, it is evident that the United States leads with a transaction value of US$27,720m in 2024.
Key Market Indicators offer a glimpse into the social and economic landscape of the chosen region and offer valuable insights into market-specific advancements.
These indicators, combined with information from statistical offices, trade associations, and businesses, form the basis for the Statista market models.
In the European Marketplace Lending (Consumer) Capital Raising market, innovative platforms in France are revolutionizing access to funding for individuals and small businesses.

Key regions: United Kingdom, United States, China, Brazil, Australia

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Analyst Opinion

Marketplace lending (consumer) in Europe has been experiencing significant growth in recent years. This can be attributed to various factors, including customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: One of the key reasons for the growth of marketplace lending in Europe is the changing preferences of consumers. Traditional banks have become less attractive to borrowers due to their stringent lending criteria and lengthy approval processes. On the other hand, marketplace lending platforms offer a more streamlined and convenient experience, allowing borrowers to access funds quickly and easily. Additionally, marketplace lending platforms often provide competitive interest rates, making them an appealing alternative for borrowers.

Trends in the market: The marketplace lending (consumer) market in Europe has also been shaped by certain trends. Firstly, there has been a rise in the number of fintech companies entering the market, offering innovative lending solutions. These companies leverage technology to assess creditworthiness and facilitate loan origination, making the lending process more efficient. Secondly, there has been an increasing demand for peer-to-peer lending, where individuals can lend money directly to other individuals. This trend has gained popularity due to the potential for higher returns compared to traditional savings accounts.

Local special circumstances: Different countries in Europe have their own unique circumstances that contribute to the development of the marketplace lending market. For example, countries with a large population of young professionals, such as the United Kingdom and Germany, have seen significant growth in marketplace lending. This can be attributed to the fact that younger generations are more comfortable with online platforms and are open to alternative lending options. Additionally, countries with a less developed banking infrastructure, such as Eastern European countries, have seen marketplace lending fill a gap in the market and provide access to credit for individuals who may have otherwise been excluded.

Underlying macroeconomic factors: The growth of the marketplace lending (consumer) market in Europe is also influenced by underlying macroeconomic factors. Low interest rates across the region have encouraged borrowers to seek out alternative lending options that offer more attractive rates. Additionally, the economic recovery following the global financial crisis has resulted in increased consumer confidence and a greater willingness to borrow. These factors have created a conducive environment for marketplace lending to thrive. In conclusion, the marketplace lending (consumer) market in Europe has experienced significant growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. As consumers continue to seek out convenient and competitive lending options, marketplace lending platforms are likely to play an increasingly important role in the European lending landscape.

Methodology

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.