Marketplace Lending (Consumer) - Georgia

Total transaction value in the MarketMarketplace Lending (Consumer) market market in Georgia is forecasted to reach US$369.60k in 2024.
When compared globally, the United States leads with a transaction value of US$28bn in the same year.
Key Market Indicators offer a snapshot of the social and economic landscape of Georgia, offering valuable insights into market-specific trends.
These indicators, coupled with information from statistical agencies, trade bodies, and businesses, form the basis for Statista's market projections.
Georgia's Marketplace Lending sector is seeing a surge in consumer demand, driving capital raising activities to new heights in the financial market.

Definition:

Marketplace Lending platforms offer private users the option to place requests for loans in an online marketplace to find private investors who would invest at an appropriate interest rate. These services apply a credit score and list the financial requests by intended purpose before fixing a lending rate. One or more investors can then serve the credit request. Although banks act in cooperation with the platform providers, the lending is done, in principle, without direct exposure, risk audits or the formal requirements normally associated with credit lending. This is attractive for many users because the processes are expedited, there is less demand when it comes of the borrower’s creditworthiness and the conditions are often more flexible than with traditional bank loans. Users are defined in this case as active borrowers on an online platform; applicants or investors who are only partially recorded as users are not included. The amount of outstanding, short-term installments or consumer loans recognized during the applicable year is used here as a benchmark.

Additional Information:

Key players in the market are Lending Club, Zopa, Auxmoney and Prosper.

Online marketplace for personal loan applications and private investors
Peer-to-Peer loans with interest rates depending on internal credit scoring of the platform provider

Online comparison websites for bank loans
Traditional bank loans
Loans for business purposes (see Crowdlending)

The Marketplace Lending (Consumer) market in Georgia is experiencing significant growth and development.

Customer preferences: Customers in Georgia are increasingly turning to marketplace lending platforms for their borrowing needs. This is due to the convenience and accessibility offered by these platforms, as well as the ability to access a wide range of loan options. Additionally, marketplace lending platforms often offer more competitive interest rates and flexible repayment terms compared to traditional banks.

Trends in the market: One of the key trends in the marketplace lending market in Georgia is the rise of peer-to-peer lending platforms. These platforms connect individual borrowers with individual lenders, cutting out the middleman and reducing costs for both parties. This trend is driven by the increasing popularity of online lending platforms and the desire for individuals to have more control over their borrowing and lending activities. Another trend in the market is the increasing use of alternative data sources for credit assessment. Traditional banks rely heavily on credit scores and income verification to assess the creditworthiness of borrowers. However, marketplace lending platforms are utilizing alternative data sources such as social media profiles, online shopping habits, and utility bill payments to assess the creditworthiness of borrowers. This allows them to reach a wider pool of borrowers who may not have a traditional credit history.

Local special circumstances: The marketplace lending market in Georgia is also influenced by local special circumstances. One such circumstance is the high level of financial exclusion in the country. Many individuals in Georgia do not have access to traditional banking services, making marketplace lending platforms a viable alternative for borrowing and lending. Additionally, the lack of a well-developed credit scoring system in Georgia further drives the demand for alternative credit assessment methods used by marketplace lending platforms.

Underlying macroeconomic factors: The development of the marketplace lending market in Georgia is also influenced by 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 demand for credit among individuals, which marketplace lending platforms are able to fulfill. Furthermore, the low interest rate environment in Georgia has made borrowing more affordable, further fueling the growth of the marketplace lending market. In conclusion, the Marketplace Lending (Consumer) market in Georgia is developing rapidly due to customer preferences for convenience and competitive interest rates. The rise of peer-to-peer lending platforms and the use of alternative data sources for credit assessment are key trends in the market. Local special circumstances, such as financial exclusion and the lack of a well-developed credit scoring system, also contribute to the growth of the marketplace lending market. Underlying macroeconomic factors, including steady economic growth and low interest rates, further support the development of the market.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Crowdfunding is the collective effort of a large number of individuals who network and pool small amounts of capital to finance a new or existing business venture. Each campaign is set for a goal amount of money and a fixed timeframe, each day is counted down and the money raised will be tallied up for visitors to follow its success. The size of the global crowdfunding market is growing and the largest markets are North America and Asia.