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Marketplace Lending (Consumer) - Northern Africa

Northern Africa

The country in Northern Africa is expected to see the total transaction value in the MarketMarketplace Lending (Consumer) market market reach US$24.3m by 2024.
In a global context, the United States leads with a projected transaction value of US$26,720m in 2024.
Key Market Indicators offer a glimpse into the social and economic landscape of the region, shedding light on market-specific trends.
These indicators, combined with information from statistical agencies, trade groups, and businesses, form the basis for Statista's market projections.
In Northern Africa, Marketplace Lending in Egypt is gaining traction as a popular alternative for consumer capital raising amidst evolving financial landscapes.

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

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Analyst Opinion

Marketplace lending (consumer) in Northern Africa is experiencing significant growth and development. This emerging market is driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences in Northern Africa are playing a crucial role in the development of the marketplace lending (consumer) market. With a growing middle class and increasing access to technology, consumers are seeking convenient and efficient financial solutions. Traditional banking services often have lengthy approval processes and require extensive paperwork, making them less attractive to consumers.

Marketplace lending platforms provide a more streamlined and accessible alternative, allowing borrowers to access funds quickly and easily. Trends in the market are also contributing to the growth of marketplace lending (consumer) in Northern Africa. One notable trend is the increasing adoption of mobile technology.

Mobile phone penetration is high in the region, and consumers are increasingly using their smartphones for various financial transactions, including borrowing and lending. This trend has created opportunities for marketplace lending platforms to reach a wider audience and provide their services through mobile applications. Another trend driving the market is the rise of alternative credit scoring models.

Traditional credit scoring methods may not accurately assess the creditworthiness of individuals in Northern Africa, as many people lack formal credit histories. Marketplace lending platforms are utilizing alternative data sources, such as mobile phone usage and social media activity, to assess borrowers' creditworthiness. This allows them to extend loans to individuals who would otherwise be excluded from the formal banking system.

Local special circumstances also contribute to the development of the marketplace lending (consumer) market in Northern Africa. The region has a large unbanked population, with many individuals lacking access to traditional banking services. Marketplace lending platforms provide an opportunity for these individuals to access much-needed financing for various purposes, such as starting a business or covering unexpected expenses.

Additionally, the region has a high youth population, and marketplace lending platforms cater to the financial needs of this tech-savvy demographic. Underlying macroeconomic factors further support the growth of marketplace lending (consumer) in Northern Africa. Economic growth in the region has been relatively strong, creating a favorable environment for lending activities.

Additionally, governments in the region are increasingly recognizing the importance of financial inclusion and are implementing policies to promote access to finance. These factors, combined with the growing demand for convenient and accessible financial services, provide a conducive environment for marketplace lending (consumer) to thrive. In conclusion, marketplace lending (consumer) in Northern Africa is experiencing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

As technology continues to advance and financial inclusion becomes a priority, the marketplace lending (consumer) market in Northern Africa is expected to continue its upward trajectory.

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.