Market Insights Financial Capital Raising Digital Capital Raising

Marketplace Lending (Consumer) - Mongolia

Mongolia

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Mongolia is projected to reach US$0.0 in 2024.
In a global comparison perspective, it is highlighted that the highest transaction value is reached the United States ( US$26,720m in 2024).
The Key Market Indicators offer a comprehensive view of the social and economic landscape of the selected region, shedding light on pertinent market-specific advancements.
These indicators, coupled with data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
In Mongolia, Marketplace Lending for Consumer Capital Raising is gaining traction due to increased demand for alternative financing options.

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

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Analyst Opinion

The Marketplace Lending (Consumer) market in Mongolia is experiencing significant growth and development.

Customer preferences: In Mongolia, consumers are increasingly turning to marketplace lending platforms to meet their borrowing needs. This can be attributed to several factors. Firstly, borrowers appreciate the convenience and speed of the online application process, which allows them to access funds quickly and easily. Additionally, marketplace lending platforms often offer more flexible lending terms and lower interest rates compared to traditional financial institutions, making them an attractive option for borrowers.

Trends in the market: One key trend in the Mongolian marketplace lending market is the increasing popularity of peer-to-peer lending platforms. These platforms connect individual lenders with borrowers, cutting out the need for a traditional financial intermediary. This trend is driven by the growing trust and confidence in online lending platforms, as well as the desire for borrowers to access funds from a wide range of sources. Peer-to-peer lending platforms also offer lenders the opportunity to earn higher returns on their investments compared to traditional savings accounts or low-yield investments. Another trend in the Mongolian marketplace lending market is the emergence of specialized lending platforms. These platforms cater to specific borrower segments, such as small business owners or individuals with low credit scores. By focusing on these niche markets, specialized lending platforms are able to better understand the unique needs and challenges of their target customers, and offer tailored loan products and services.

Local special circumstances: Mongolia's marketplace lending market is also influenced by local special circumstances. The country has a relatively underdeveloped financial sector, with limited access to traditional banking services, especially in rural areas. This has created a gap in the market, which marketplace lending platforms are filling by providing accessible and affordable credit options to underserved populations. Additionally, Mongolia has a young and tech-savvy population, which is driving the adoption of online lending platforms.

Underlying macroeconomic factors: Several macroeconomic factors are contributing to the growth of the marketplace lending market in Mongolia. Firstly, the country has experienced rapid economic growth in recent years, which has led to an increase in disposable income and consumer spending. This has created a greater demand for credit, which marketplace lending platforms are able to meet. Additionally, Mongolia has a high smartphone penetration rate, which enables borrowers to easily access and use online lending platforms. Finally, the government has implemented policies to promote financial inclusion and support the development of the fintech sector, which has created a favorable regulatory environment for marketplace lending platforms to operate in.

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.