Marketplace Lending (Consumer) - Germany

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Germany is forecasted to reach US$798.40m in 2024.
When compared globally, it is evident that the United States leads with a transaction value of US$28bn in 2024.
Key Market Indicators offer a glimpse into the social and economic landscape of Germany, shedding light on market-specific advancements.
These indicators, in conjunction with information from statistical bureaus, trade groups, and enterprises, form the basis for Statista's market analyses.
Germany's Marketplace Lending sector in Capital Raising is experiencing a surge in investor interest, driven by innovative platforms and favorable regulations.

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 Germany has been experiencing significant growth in recent years.

Customer preferences: German consumers have shown a growing interest in marketplace lending as an alternative to traditional banking services. This can be attributed to several factors. Firstly, marketplace lending offers borrowers a more streamlined and convenient application process compared to traditional banks. Additionally, borrowers can often access loans at more competitive interest rates through marketplace lending platforms. Furthermore, marketplace lending provides an opportunity for individuals with limited credit history or lower credit scores to access financing that may not be available to them through traditional channels.

Trends in the market: One of the key trends in the German marketplace lending market is the increasing diversification of loan products offered by platforms. Initially, marketplace lending in Germany focused primarily on unsecured personal loans. However, as the market has evolved, platforms have started to offer a wider range of loan products, including car loans, student loans, and small business loans. This trend reflects the growing demand for specialized financing options among German consumers. Another notable trend is the emergence of partnerships between marketplace lending platforms and traditional financial institutions. These partnerships allow traditional banks to leverage the technology and customer reach of marketplace lending platforms, while providing platforms with access to a broader customer base and potentially lower funding costs. This trend indicates a growing acceptance and integration of marketplace lending within the broader financial ecosystem in Germany.

Local special circumstances: Germany has a highly developed banking sector, with a strong emphasis on traditional banking services. However, the low interest rate environment in recent years has put pressure on banks' profitability and led to a search for alternative investment opportunities. This has created favorable conditions for the growth of marketplace lending, as investors seek higher returns through lending to individuals and businesses.

Underlying macroeconomic factors: The German economy has been performing well in recent years, with steady GDP growth and low unemployment rates. This has contributed to a favorable lending environment, as borrowers have a higher ability to repay loans. Additionally, the country's strong regulatory framework and consumer protection laws provide a level of confidence and trust in marketplace lending platforms, further encouraging growth in the market. Overall, the Marketplace Lending (Consumer) market in Germany is developing rapidly due to customer preferences for convenience and competitive interest rates, the diversification of loan products, partnerships with traditional financial institutions, the low interest rate environment, and the strong macroeconomic conditions in the country.

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.