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Marketplace Lending (Consumer) - Indonesia

Indonesia

The projected total transaction value in the MarketMarketplace Lending (Consumer) market market in Indonesia is expected to reach US$22.5m in 2024.
When comparing this figure globally, it is noteworthy that the United States is forecasted to achieve the highest transaction value at US$26,720m in the same year.
Analyzing the Key Market Indicators offers a comprehensive view of the social and economic landscape of Indonesia, shedding light on market-specific trends and developments.
These indicators, supported by data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
Indonesia's marketplace lending sector is experiencing rapid growth, attracting a surge of consumer capital raising activities in the financial market.

Key regions: United Kingdom, United States, China, Brazil, Australia

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Analyst Opinion

The Marketplace Lending (Consumer) market in Indonesia has been experiencing significant growth in recent years, driven by changing customer preferences, favorable market trends, and local special circumstances. Customer preferences in the Indonesian marketplace lending market have been shifting towards online platforms due to their convenience and accessibility.

Consumers are increasingly turning to these platforms to access quick and hassle-free loans, as traditional banking services can be time-consuming and require extensive documentation. Additionally, the younger population in Indonesia, which makes up a significant portion of the consumer market, is more tech-savvy and comfortable with online transactions, further driving the demand for marketplace lending services. Trends in the market indicate a growing acceptance and adoption of marketplace lending in Indonesia.

The market has seen the emergence of various online lending platforms, offering a wide range of loan products and services to cater to different customer needs. These platforms leverage technology and data analytics to streamline the loan application process, assess creditworthiness, and provide personalized loan offers. This has made it easier for individuals, especially those without a credit history or collateral, to access credit.

Local special circumstances have also contributed to the growth of the marketplace lending market in Indonesia. The country has a large unbanked and underbanked population, with limited access to traditional financial services. Marketplace lending platforms have filled this gap by providing financial services to individuals who may not meet the requirements of traditional banks.

Moreover, the Indonesian government has been supportive of financial technology (fintech) innovation and has implemented regulations to promote the growth of the sector, including the issuance of licenses for marketplace lending platforms. Underlying macroeconomic factors have also played a role in the development of the marketplace lending market in Indonesia. 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 and financial services, which marketplace lending platforms have been able to meet. Additionally, the high mobile penetration rate in Indonesia has facilitated the adoption of online lending platforms, as consumers can easily access these services through their smartphones. In conclusion, the Marketplace Lending (Consumer) market in Indonesia has been growing rapidly due to changing customer preferences, favorable market trends, local special circumstances, and underlying macroeconomic factors.

The convenience and accessibility offered by online lending platforms, along with the support of the government and the increasing demand for credit, have contributed to the growth of the market. As the market continues to evolve, it is expected that marketplace lending will play an increasingly important role in meeting the financial needs of Indonesian consumers.

Methodology

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.