Market Insights Financial Capital Raising Digital Capital Raising

Marketplace Lending (Consumer) - Luxembourg

Luxembourg

The total transaction value in the MarketMarketplace Lending (Consumer) market market is forecasted to reach US$10.20m in Luxembourg in 2024.
When compared globally, it is evident that the United States leads with a transaction value of US$27,720m in 2024.
Key Market Indicators offer a comprehensive view of the social and economic landscape of Luxembourg and offer valuable insights into market-specific trends.
These indicators, in conjunction with data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
Luxembourg's Marketplace Lending sector is witnessing a surge in consumer capital raising, driven by innovative fintech platforms and favorable regulatory frameworks.

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

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Analyst Opinion

The Marketplace Lending (Consumer) market in Luxembourg is experiencing steady growth due to several factors. Customer preferences have shifted towards online platforms for borrowing and lending, leading to an increase in demand for marketplace lending services. Additionally, the local special circumstances in Luxembourg, such as a strong financial services sector and a high level of digital infrastructure, have contributed to the development of the marketplace lending market. Furthermore, underlying macroeconomic factors, such as low interest rates and a favorable regulatory environment, have also played a role in the growth of the marketplace lending market in Luxembourg.

Customer preferences: Customers in Luxembourg are increasingly turning to online platforms for their borrowing and lending needs. This shift in preference can be attributed to the convenience and accessibility offered by marketplace lending platforms. These platforms provide borrowers with a streamlined application process and quick access to funds, while lenders can diversify their investment portfolio and earn attractive returns. The ease of use and transparency of marketplace lending platforms have made them an attractive alternative to traditional banking channels.

Trends in the market: One of the key trends in the marketplace lending market in Luxembourg is the rise of peer-to-peer lending platforms. These platforms connect individual borrowers with individual lenders, eliminating the need for traditional financial intermediaries. Peer-to-peer lending has gained popularity in Luxembourg due to its ability to offer competitive interest rates to borrowers and attractive returns to lenders. This trend is expected to continue as more borrowers and lenders become aware of the benefits of peer-to-peer lending. Another trend in the marketplace lending market in Luxembourg is the increasing use of technology and data analytics. Marketplace lending platforms are leveraging technology to automate the loan application and approval process, reducing the time and effort required for borrowers and lenders. Furthermore, data analytics are being used to assess the creditworthiness of borrowers, enabling lenders to make informed lending decisions. These technological advancements are improving the efficiency and accuracy of the marketplace lending market in Luxembourg.

Local special circumstances: Luxembourg has a strong financial services sector, which has contributed to the development of the marketplace lending market. The presence of established financial institutions and a favorable regulatory environment have attracted marketplace lending platforms to set up operations in Luxembourg. Additionally, Luxembourg has a high level of digital infrastructure, making it easier for borrowers and lenders to access marketplace lending platforms. These local special circumstances have created a conducive environment for the growth of the marketplace lending market in Luxembourg.

Underlying macroeconomic factors: Low interest rates in Luxembourg have incentivized borrowers to seek alternative sources of financing, such as marketplace lending. With traditional banks offering low returns on deposits, borrowers are turning to marketplace lending platforms to access funds at more competitive rates. Additionally, the favorable regulatory environment in Luxembourg, which promotes innovation and competition in the financial sector, has also contributed to the growth of the marketplace lending market. These underlying macroeconomic factors have created favorable conditions for the marketplace lending market to thrive in Luxembourg.

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.