Market Insights Financial Capital Raising Digital Capital Raising

Marketplace Lending (Consumer) - Philippines

Philippines

The total transaction value in the MarketMarketplace Lending (Consumer) market market in the country in the Philippines is projected to reach US$6.9m in 2024.
When compared globally, it is observed that the highest transaction value is anticipated the United States (US$26,720m in 2024).
The Key Market Indicators offer a glimpse into the social and economic landscape of the selected region, shedding light on pertinent market-specific trends.
These indicators, combined with information from statistical offices, trade associations, and businesses, form the basis for the Statista market models.
In the Philippines, Marketplace Lending for consumer capital raising is gaining traction due to increasing demand for alternative financing options.

Key regions: Singapore, United States, Israel, United Kingdom, Australia

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Analyst Opinion

Marketplace lending (consumer) in the Philippines has been experiencing significant growth in recent years. This can be attributed to several factors, including changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In the Philippines, there is a growing demand for convenient and accessible financial services. Traditional banking services are often limited to urban areas, leaving a large portion of the population underserved. Marketplace lending platforms provide an alternative solution by offering quick and easy access to credit for consumers, especially those in rural areas. This convenience factor is a key driver of the increasing popularity of marketplace lending in the country.

Trends in the market: One of the notable trends in the marketplace lending market in the Philippines is the rise of peer-to-peer lending platforms. These platforms connect borrowers directly with lenders, eliminating the need for intermediaries such as banks. This not only simplifies the lending process but also reduces costs, making it an attractive option for both borrowers and lenders. The emergence of peer-to-peer lending platforms has contributed to the overall growth of the marketplace lending market in the country. Another trend in the market is the focus on financial inclusion. Marketplace lending platforms in the Philippines are actively targeting underserved segments of the population, such as small business owners and individuals with limited credit history. By leveraging alternative data sources and advanced credit scoring models, these platforms are able to assess the creditworthiness of these individuals and provide them with access to affordable credit. This focus on financial inclusion aligns with the government's initiatives to promote inclusive economic growth.

Local special circumstances: The Philippines has a large unbanked population, with a significant portion of the population lacking access to formal financial services. This presents a unique opportunity for marketplace lending platforms to fill the gap and provide financial services to those who are excluded from the traditional banking system. The ability to reach underserved customers and cater to their specific needs is a key advantage of marketplace lending in the Philippines.

Underlying macroeconomic factors: The Philippines has experienced strong economic growth in recent years, with a growing middle class and increasing disposable income. This has led to a greater demand for credit and financial services, creating a favorable environment for the development of the marketplace lending market. Additionally, the government has been implementing reforms to promote financial inclusion and improve access to credit, further supporting the growth of marketplace lending in the country. In conclusion, the marketplace lending (consumer) market in the Philippines is developing rapidly due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. The convenience and accessibility offered by marketplace lending platforms, along with the focus on financial inclusion, have contributed to the increasing popularity of this alternative lending model in the country. With a large unbanked population and a growing economy, the marketplace lending market in the Philippines is expected to continue its upward trajectory in the coming years.

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.