Marketplace Lending (Consumer) - Ireland

Total transaction value in Ireland's MarketMarketplace Lending (Consumer) market market is forecasted to reach US$61.52m 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 the chosen country, shedding light on market-specific advancements.
These indicators, coupled with information from statistical bureaus, trade organizations, and enterprises, underpin the Statista market projections.
Ireland's marketplace lending sector is gaining traction, with a surge in consumer capital raising through innovative online platforms.

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)

Marketplace lending has gained significant traction in Ireland in recent years, with a growing number of consumers turning to online platforms to borrow money. This trend can be attributed to several factors, including changing customer preferences, favorable market conditions, and the unique circumstances of the Irish economy.

Customer preferences: Irish consumers are increasingly embracing marketplace lending as an alternative to traditional banks. This shift in preference can be attributed to several factors. Firstly, marketplace lending platforms offer a streamlined and convenient borrowing experience, with quick approval processes and easy access to funds. This appeals to consumers who value speed and efficiency in their financial transactions. Secondly, marketplace lending platforms often provide more flexible lending terms compared to traditional banks. This includes lower interest rates, personalized repayment schedules, and the ability to borrow smaller amounts. These features are particularly attractive to consumers who may not qualify for traditional bank loans or who require smaller, short-term loans.

Trends in the market: One notable trend in the Irish marketplace lending market is the rise of peer-to-peer lending platforms. These platforms connect borrowers directly with individual lenders, eliminating the need for traditional intermediaries such as banks. This trend reflects a growing desire among Irish consumers to have greater control over their financial transactions and to support local lending initiatives. Another trend in the marketplace lending market in Ireland is the increasing diversification of loan offerings. While personal loans remain the most popular product, platforms are expanding their offerings to include other types of loans such as business loans and student loans. This diversification allows marketplace lending platforms to cater to a wider range of consumer needs and preferences.

Local special circumstances: The unique circumstances of the Irish economy have also contributed to the growth of marketplace lending. Ireland experienced a severe financial crisis in 2008, which led to a contraction in credit availability from traditional banks. This created a gap in the market, which marketplace lending platforms have been able to fill by providing alternative sources of credit. Furthermore, Ireland has a high rate of self-employment and small business ownership, which can make it challenging for these individuals to access traditional bank loans. Marketplace lending platforms have been able to address this gap in the market by offering loans specifically tailored to the needs of self-employed individuals and small businesses.

Underlying macroeconomic factors: The growth of marketplace lending in Ireland is also influenced by underlying macroeconomic factors. The country has experienced a period of sustained economic growth in recent years, with low unemployment rates and increasing disposable incomes. This positive economic environment has created a favorable market for consumer lending, with more individuals seeking credit for various purposes such as home improvements, debt consolidation, and education. Additionally, the low-interest-rate environment in Ireland has made borrowing more affordable for consumers. This has encouraged individuals to seek out competitive interest rates offered by marketplace lending platforms, further driving the growth of the market. In conclusion, the marketplace lending market in Ireland is experiencing significant growth due to changing customer preferences, favorable market conditions, and the unique circumstances of the Irish economy. As consumers continue to embrace the convenience and flexibility offered by marketplace lending platforms, this trend is likely to continue in the coming years.

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.