Key regions: United Kingdom, United States, China, Brazil, Australia
The Marketplace Lending (Consumer) market in GCC is experiencing steady growth and development.
Customer preferences: Customers in the GCC region are increasingly turning to marketplace lending platforms for their borrowing needs. This is driven by several factors, including the convenience and ease of accessing loans online, as well as the ability to compare different lenders and choose the best terms and rates. Additionally, marketplace lending platforms often offer faster approval times and more flexible lending criteria compared to traditional banks.
Trends in the market: One of the key trends in the GCC marketplace lending market is the increasing adoption of mobile lending platforms. With high smartphone penetration rates in the region, customers are increasingly using their mobile devices to access lending platforms and apply for loans. This trend is expected to continue as mobile technology continues to advance and become more accessible to a wider population. Another trend in the market is the diversification of loan products offered by marketplace lenders. Initially, marketplace lending platforms in the GCC region primarily focused on personal loans. However, there has been a shift towards offering a wider range of loan products, including auto loans, home improvement loans, and small business loans. This expansion of loan offerings allows marketplace lenders to cater to a broader customer base and meet the specific borrowing needs of different segments of the population.
Local special circumstances: The GCC region has a large expatriate population, with many individuals working in the region on temporary contracts. This presents a unique challenge for traditional banks, as they often require extensive documentation and proof of long-term residency for loan approvals. Marketplace lending platforms, on the other hand, are able to leverage technology to streamline the loan application process and make lending decisions based on alternative data sources. This has made marketplace lending a popular choice for expatriates in the GCC region who may not meet the strict requirements of traditional banks.
Underlying macroeconomic factors: The GCC region has been experiencing economic diversification and growth in recent years. This has led to an increase in consumer spending and borrowing, driving demand for marketplace lending services. Additionally, the region has a young and tech-savvy population that is comfortable with online transactions and digital platforms. These factors, combined with supportive government regulations and initiatives to promote financial technology, have created a conducive environment for the growth of the marketplace lending market in the GCC region. In conclusion, the Marketplace Lending (Consumer) market in the GCC region is thriving due to customer preferences for convenience and flexibility, as well as the adoption of mobile lending platforms. The market is also benefiting from the diversification of loan products and the unique circumstances of the expatriate population. The underlying macroeconomic factors, including economic growth and a young population, further contribute to the development of the marketplace lending market in the GCC region.
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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