Marketplace Lending (Consumer) - Iran

Total transaction value in Iran's MarketMarketplace Lending (Consumer) market market is forecasted to reach US$916.60k in 2024.
When compared globally, the United States is expected to reach the highest transaction value (US$28bn in 2024).
Key Market Indicators offer a glimpse into the social and economic landscape of the chosen region, shedding light on specific market trends.
These indicators, alongside information from statistical agencies, industry groups, and businesses, form the basis for the Statista market models.
Iran's marketplace lending sector is gaining traction as more consumers turn to online platforms for capital raising, reflecting evolving financial behaviors in the country.

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 Iran is experiencing significant growth and development.

Customer preferences: In recent years, there has been a shift in customer preferences towards digital lending platforms in Iran. This can be attributed to the convenience and accessibility offered by these platforms, allowing borrowers to easily apply for loans online and receive funds quickly. Additionally, the transparency and competitive interest rates offered by marketplace lenders have also been appealing to customers.

Trends in the market: One of the key trends in the Iranian marketplace lending market is the increasing number of platforms catering to specific borrower segments. This includes platforms that focus on providing loans to small businesses, students, and individuals with limited credit history. By targeting these niche segments, marketplace lenders are able to better understand the needs of their customers and tailor their loan offerings accordingly. Another trend in the market is the emergence of peer-to-peer lending platforms. These platforms connect individual lenders with borrowers, allowing for direct lending without the involvement of traditional financial institutions. This has opened up new opportunities for both lenders and borrowers, providing an alternative to traditional banking channels.

Local special circumstances: Iran has a large population of young and tech-savvy individuals who are increasingly comfortable with using digital platforms for various financial services. This has created a favorable environment for the growth of marketplace lending in the country. Additionally, the lack of access to traditional banking services for many individuals and small businesses has also contributed to the rise of marketplace lending as an alternative source of financing.

Underlying macroeconomic factors: The economic conditions in Iran have also played a role in the development of the marketplace lending market. The country has been experiencing high inflation rates and a lack of access to credit from traditional financial institutions. This has created a demand for alternative financing options, leading to the growth of marketplace lending. Additionally, the government's efforts to promote financial inclusion and support the development of the fintech sector have also contributed to the growth of marketplace lending in Iran.

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.