Marketplace Lending (Consumer) - Ghana

Total transaction value in Ghana's MarketMarketplace Lending (Consumer) market market is expected to hit US$13.37m in 2024.
When looking at a global scale, 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 Ghana, shedding light on market-specific trends.
These indicators, coupled with information from statistical offices, trade associations, and businesses, form the basis for the Statista market projections.
Ghana's marketplace lending sector is gaining traction in consumer capital raising, offering innovative financial solutions to meet the growing demand for credit.

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 Ghana is experiencing significant growth and development.

Customer preferences: Ghanaians are increasingly turning to marketplace lending platforms for their borrowing needs due to several reasons. Firstly, the convenience and accessibility offered by these platforms are highly appealing to customers. With just a few clicks, borrowers can apply for loans and receive funds quickly, eliminating the need for lengthy paperwork and traditional banking processes. Additionally, marketplace lending platforms often have lower interest rates compared to traditional banks, making them an attractive option for borrowers seeking affordable financing.

Trends in the market: One of the key trends in the marketplace lending market in Ghana is the rise of peer-to-peer lending platforms. These platforms connect individual lenders with borrowers, creating a direct lending relationship. This trend is driven by the increasing interest of individuals who want to earn higher returns on their savings by lending directly to borrowers, bypassing traditional financial intermediaries. Peer-to-peer lending platforms also provide borrowers with more flexible loan terms and repayment options, further enhancing their appeal. Another trend in the marketplace lending market in Ghana is the emergence of specialized lending platforms catering to specific sectors or industries. These platforms understand the unique needs and challenges of borrowers in these sectors and tailor their loan products accordingly. For example, there are marketplace lending platforms that focus on providing loans to small businesses or farmers, who may have limited access to traditional financing options. This specialization allows borrowers to access funds that are specifically designed to meet their needs, contributing to the growth of the marketplace lending market in Ghana.

Local special circumstances: Ghana's marketplace lending market is also influenced by local special circumstances. One such circumstance is the high rate of mobile phone penetration in the country. Mobile phones are widely used for financial transactions in Ghana, with mobile money services being popular among the population. This prevalence of mobile technology has facilitated the growth of marketplace lending platforms, as borrowers can easily access these platforms through their mobile phones. Furthermore, the government of Ghana has been supportive of financial technology innovation, creating a conducive environment for marketplace lending platforms to thrive.

Underlying macroeconomic factors: The development of the marketplace lending market in Ghana is also influenced by underlying macroeconomic factors. The country has experienced steady economic growth in recent years, with a growing middle class and increasing disposable incomes. This has created a demand for credit among consumers, who are looking for ways to finance their aspirations and improve their living standards. Additionally, the traditional banking sector in Ghana has faced challenges in providing affordable and accessible credit to individuals and small businesses, creating a gap that marketplace lending platforms are filling. In conclusion, the Marketplace Lending (Consumer) market in Ghana is growing and evolving rapidly. Customer preferences for convenience, accessibility, and affordability are driving the adoption of marketplace lending platforms. The rise of peer-to-peer lending and specialized lending platforms are key trends in the market. Local special circumstances, such as high mobile phone penetration and government support for financial technology, further contribute to the growth of the marketplace lending market in Ghana. Underlying macroeconomic factors, including economic growth and challenges in the traditional banking sector, also play a role in shaping 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.