Marketplace Lending (Consumer) - New Zealand

The total transaction value in the MarketMarketplace Lending (Consumer) market market in New Zealand is forecasted to reach US$5.78m in 2024.
When compared globally, 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 New Zealand, shedding light on market-specific trends.
These indicators, supported by data from statistical offices, trade associations, and businesses, form the basis for the Statista market models.
In New Zealand, Marketplace Lending for consumer capital raising is gaining traction, with innovative platforms offering accessible financing options to a growing number of borrowers.

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 New Zealand has been experiencing significant growth in recent years.

Customer preferences: New Zealand consumers have shown a growing preference for online lending platforms due to their convenience and accessibility. These platforms provide borrowers with a quick and easy way to access funds, often with lower interest rates compared to traditional banks. The ability to apply for loans online and receive funds within a short period of time has made marketplace lending an attractive option for many New Zealanders.

Trends in the market: One of the key trends in the New Zealand marketplace lending market is the increasing number of platforms offering personal loans. These platforms have been able to cater to a wide range of borrower needs, including debt consolidation, home improvements, and small business financing. As a result, consumers have more options to choose from and can find a loan that best suits their individual circumstances. Another trend in the market is the emergence of peer-to-peer lending platforms. These platforms connect borrowers directly with individual investors, bypassing the traditional banking system. This has created a new source of funding for borrowers who may not meet the strict lending criteria of banks. Peer-to-peer lending has also provided investors with an alternative investment opportunity, allowing them to earn competitive returns on their capital.

Local special circumstances: New Zealand's relatively small population and geographic isolation have contributed to the growth of marketplace lending in the country. Traditional banks may have limited physical presence in certain regions, making it difficult for individuals in these areas to access financial services. Marketplace lending platforms, on the other hand, can operate nationwide and provide services to borrowers regardless of their location. This has helped to bridge the gap in financial inclusion and provide equal opportunities for individuals in all parts of the country.

Underlying macroeconomic factors: The growth of the marketplace lending market in New Zealand can also be attributed to favorable macroeconomic conditions. The country has experienced stable economic growth in recent years, with low unemployment rates and low inflation. This has increased consumer confidence and willingness to borrow, driving demand for marketplace lending services. Additionally, the low interest rate environment has made borrowing more affordable for consumers, further fueling the growth of the marketplace lending market. In conclusion, the Marketplace Lending (Consumer) market in New Zealand has been growing rapidly due to customer preferences for online lending platforms, the emergence of personal loan and peer-to-peer lending options, local special circumstances such as limited access to traditional banking services, and favorable macroeconomic conditions. As these trends continue, it is expected that the marketplace lending market in New Zealand will continue to expand 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.