Key regions: United Kingdom, United States, China, Brazil, Australia
Marketplace lending, also known as peer-to-peer lending, has been steadily gaining popularity in Gambia in recent years. This alternative form of lending allows individuals to borrow money directly from other individuals or institutional investors, bypassing traditional financial institutions like banks.
Customer preferences: One of the main reasons for the growth of marketplace lending in Gambia is the increasing demand for access to credit. Traditional banks in the country have stringent lending criteria and often require collateral, making it difficult for many individuals to secure loans. Marketplace lending platforms provide a more inclusive and accessible way for borrowers to obtain funds, especially for those who may not meet the strict requirements of traditional lenders.
Trends in the market: The marketplace lending market in Gambia is experiencing significant growth due to several key trends. Firstly, the rise of digital technology and internet penetration has made it easier for borrowers and lenders to connect through online platforms. This has led to a proliferation of marketplace lending platforms in the country, offering a wide range of loan products and terms to cater to different borrower needs. Secondly, the increasing popularity of mobile money services in Gambia has also contributed to the growth of marketplace lending. Mobile money platforms provide a convenient and secure way for borrowers to receive and repay loans, further facilitating the lending process.
Local special circumstances: Gambia has a relatively young population, with a large percentage of the population being under the age of 30. This demographic trend has created a demand for innovative financial solutions, including marketplace lending. Younger borrowers are more likely to be tech-savvy and open to using digital platforms for their financial needs. Additionally, Gambia has a high rate of informal employment, with many individuals working in the informal sector and lacking formal payslips or employment contracts. This poses a challenge for traditional lenders who rely on these documents to assess creditworthiness. Marketplace lending platforms, on the other hand, are often more flexible in their lending criteria and can consider alternative data sources to assess borrowers' creditworthiness.
Underlying macroeconomic factors: The growth of the marketplace lending market in Gambia can also be attributed to underlying macroeconomic factors. The country has experienced steady economic growth in recent years, which has led to an increase in disposable income and consumer spending. This has created a greater demand for credit, which marketplace lending platforms are able to fulfill. Furthermore, Gambia has a relatively low banking penetration rate, with many individuals lacking access to formal banking services. Marketplace lending platforms offer an alternative source of financing for these underserved populations, helping to bridge the gap in financial inclusion. In conclusion, the marketplace lending market in Gambia is developing rapidly due to customer preferences for accessible credit, key trends such as digital technology and mobile money services, local special circumstances like a young population and high informal employment, and underlying macroeconomic factors including economic growth and low banking penetration. This alternative form of lending is providing a valuable solution for borrowers in Gambia who are seeking convenient and inclusive access to credit.
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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