Marketplace Lending (Consumer) - Jordan

Total transaction value in the MarketMarketplace Lending (Consumer) market market in Jordan is forecasted to reach US$529.30k in 2024.
When comparing globally, it is evident that the highest transaction value is achieved the United States (US$28bn in 2024).
The Key Market Indicators offer a glimpse into the social and economic landscape of Jordan and shed light on significant market-specific advancements.
These indicators, alongside information from statistical offices, trade associations, and businesses, form the basis for the Statista market models.
Jordan's Marketplace Lending sector is witnessing a surge in consumer capital raising through innovative online platforms, transforming the country's financial landscape.

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 Jordan has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the growth of the Marketplace Lending (Consumer) market in Jordan is the changing preferences of customers. As more and more people in Jordan are becoming digitally savvy, they are increasingly opting for online lending platforms to meet their borrowing needs. These platforms offer convenience, speed, and transparency, which are highly valued by customers. Additionally, the younger generation in Jordan, who are more comfortable with technology, are more inclined to use online lending platforms compared to traditional banking services.

Trends in the market: One of the key trends in the Marketplace Lending (Consumer) market in Jordan is the rise of peer-to-peer lending platforms. These platforms connect borrowers directly with lenders, eliminating the need for intermediaries such as banks. This not only reduces costs for borrowers but also provides an opportunity for lenders to earn higher returns on their investments. Peer-to-peer lending platforms also offer a wider range of loan products and flexible terms, catering to the diverse needs of borrowers in Jordan. Another trend in the Marketplace Lending (Consumer) market in Jordan is the increasing use of alternative data for credit scoring. Traditional credit scoring models rely heavily on credit history, which can be limiting for individuals who have limited or no credit history. However, with the advancement of technology, alternative data sources such as mobile phone usage, social media activity, and utility bill payments are being used to assess creditworthiness. This allows lenders to provide loans to individuals who would have otherwise been excluded from the formal banking system.

Local special circumstances: One of the unique aspects of the Marketplace Lending (Consumer) market in Jordan is the high demand for small business loans. Jordan has a vibrant entrepreneurial ecosystem, with many individuals starting their own businesses. However, access to finance has been a major challenge for small business owners in the country. Marketplace lending platforms have emerged as a viable alternative for small business owners to secure funding quickly and efficiently. These platforms offer tailored loan products for small businesses, with flexible repayment terms and competitive interest rates.

Underlying macroeconomic factors: The growth of the Marketplace Lending (Consumer) market in Jordan is also influenced by underlying macroeconomic factors. Jordan has a relatively young population, with a high percentage of individuals in the working-age group. This provides a large pool of potential borrowers for marketplace lending platforms. Additionally, the government of Jordan has been actively promoting financial inclusion and entrepreneurship, which has created a favorable environment for the growth of the marketplace lending industry. The stable economic conditions and the increasing penetration of internet and mobile technology in Jordan have also contributed to the growth of the Marketplace Lending (Consumer) market in the country. In conclusion, the Marketplace Lending (Consumer) market in Jordan is experiencing significant growth due to changing customer preferences, the rise of peer-to-peer lending platforms, the use of alternative data for credit scoring, the high demand for small business loans, and favorable macroeconomic factors. As the market continues to evolve, it is expected to play a crucial role in providing access to finance for individuals and small businesses in Jordan.

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.