Market Insights Financial Capital Raising Digital Capital Raising

Marketplace Lending (Consumer) - Mexico

Mexico

Total transaction value in Mexico's MarketMarketplace Lending (Consumer) market market is forecasted to reach US$35.4m in 2024.
When considering global comparisons, it is evident that the United States leads with a transaction value of US$26,720m in 2024.
Key Market Indicators offer a glimpse into the social and economic landscape of Mexico and offer valuable insights into market-specific trends.
These indicators, in conjunction with data from statistical offices, trade associations, and companies, are fundamental in shaping the Statista market models.
Mexico's marketplace lending sector is experiencing a surge in consumer capital raising activities, driven by increasing demand for alternative financing solutions.

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

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Analyst Opinion

Marketplace lending (consumer) in Mexico is experiencing significant growth and development.

Customer preferences: Mexican consumers are increasingly turning to marketplace lending platforms for their borrowing needs. This is driven by several factors, including the convenience and accessibility of online lending platforms, as well as the ability to access credit quickly and easily. Additionally, marketplace lending often offers more competitive interest rates compared to traditional banks, making it an attractive option for borrowers.

Trends in the market: One of the key trends in the marketplace lending market in Mexico is the rise of peer-to-peer lending platforms. These platforms connect borrowers directly with individual lenders, cutting out the middleman and reducing costs for both parties. This trend is fueled by the growing trust in online platforms and the desire for more personalized lending experiences. Another trend is the increasing use of alternative data in the underwriting process. Traditional banks in Mexico have historically relied heavily on credit scores and income verification to assess borrowers' creditworthiness. However, marketplace lenders are leveraging alternative data sources, such as social media profiles and transaction history, to make lending decisions. This allows them to serve a wider range of borrowers who may not have a traditional credit history.

Local special circumstances: Mexico has a large unbanked population, with a significant portion of the population lacking access to traditional financial services. Marketplace lending platforms are filling this gap by providing financial services to underserved individuals and small businesses. This is particularly important in rural areas where brick-and-mortar banks may be scarce.

Underlying macroeconomic factors: Mexico's growing middle class and increasing internet penetration are driving the growth of marketplace lending. As more people gain access to the internet and become comfortable with online transactions, the demand for online lending platforms is expected to continue to grow. Additionally, the Mexican government has been supportive of financial technology (fintech) innovation, creating a favorable regulatory environment for marketplace lenders. In conclusion, the marketplace lending (consumer) market in Mexico is experiencing rapid growth and development. Customer preferences for convenience, accessibility, and competitive interest rates are driving the demand for marketplace lending platforms. The rise of peer-to-peer lending and the use of alternative data in underwriting are key trends in the market. Mexico's large unbanked population and favorable macroeconomic factors, such as a growing middle class and increasing internet penetration, are contributing to the growth of marketplace lending in the country.

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.