Marketplace Lending (Consumer) - Pakistan

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Pakistan is forecasted to reach US$1.80m 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 Pakistan, shedding light on market-specific trends.
These indicators, along with data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
Pakistan's marketplace lending sector is gaining traction in capital raising, with increasing investor interest in consumer loan opportunities in the country.

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)

Marketplace lending (consumer) in Pakistan is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to this positive trajectory.

Customer preferences in the marketplace lending (consumer) market in Pakistan are evolving. With the increasing availability of internet access and smartphone penetration, consumers are becoming more comfortable with online transactions and are seeking convenient and efficient ways to access credit. Marketplace lending platforms offer a streamlined application process and quick approval times, which appeal to borrowers who value speed and convenience.

Additionally, borrowers appreciate the transparency and competitive interest rates offered by marketplace lenders, as they provide an alternative to traditional financial institutions. The trends in the marketplace lending (consumer) market in Pakistan are driven by both global and local factors. Globally, there is a growing trend towards digitalization and fintech innovation, which is driving the expansion of marketplace lending platforms.

This trend is also evident in Pakistan, where the government has been actively promoting financial inclusion and digital payments. As a result, marketplace lending platforms have gained traction and are attracting both borrowers and investors. Local special circumstances also contribute to the development of the marketplace lending (consumer) market in Pakistan.

The country has a large population with a significant portion of the population being unbanked or underbanked. This presents an opportunity for marketplace lenders to fill the credit gap and provide financial services to individuals who have limited access to traditional banking services. Furthermore, the informal lending sector in Pakistan is prevalent, and marketplace lending platforms offer a regulated and transparent alternative for borrowers.

Underlying macroeconomic factors are also favorable for the growth of the marketplace lending (consumer) market in Pakistan. The country has been experiencing steady economic growth, which has led to an increase in disposable income and consumption. This, in turn, has created a demand for credit, and marketplace lending platforms are well-positioned to meet this demand.

Additionally, the government's focus on financial inclusion and the development of the digital economy further support the growth of marketplace lending in Pakistan. In conclusion, the marketplace lending (consumer) market in Pakistan is developing rapidly due to changing customer preferences, global and local trends, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, marketplace lending platforms have the potential to play a significant role in providing accessible and affordable credit to individuals in Pakistan.

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.