Marketplace Lending (Consumer) - Portugal

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Portugal is forecasted to reach US$31.51m in 2024.
When compared globally, the highest transaction value is projected to be reached the United States, amounting to US$28bn in 2024.
Key Market Indicators offer a glimpse into the social and economic landscape of Portugal, shedding light on relevant market-specific trends.
These indicators, along with data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
Portugal's Marketplace Lending sector is experiencing a surge in consumer capital raising, driven by innovative online platforms and growing investor confidence.

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 Portugal is experiencing significant growth and development.

Customer preferences: Portuguese consumers are increasingly turning to marketplace lending platforms as an alternative source of financing. This is driven by several factors, including the convenience and speed of the application process, as well as the ability to access funds without the need for traditional bank loans. Additionally, marketplace lending platforms often offer more competitive interest rates compared to traditional lenders, making them an attractive option for borrowers.

Trends in the market: One of the key trends in the marketplace lending market in Portugal is the increasing use of technology and data analytics. Lending platforms are leveraging advanced algorithms to assess borrower creditworthiness and determine loan eligibility. This allows for faster and more accurate loan approvals, reducing the time and effort required for both borrowers and lenders. Furthermore, the use of technology also enables marketplace lenders to offer personalized loan terms and rates based on individual borrower profiles. Another trend in the market is the emergence of specialized marketplace lending platforms catering to specific consumer segments or industries. For example, there are platforms that focus on providing loans to small businesses, while others specialize in financing education or healthcare expenses. This specialization allows lenders to better understand the unique needs and risks associated with different borrower segments, resulting in more tailored loan products and better customer experiences.

Local special circumstances: Portugal's marketplace lending market is also influenced by local special circumstances. The country has a relatively high level of household debt, which has led to a growing demand for alternative financing options. Additionally, the financial crisis in the late 2000s had a significant impact on the Portuguese banking sector, leading to tighter lending standards and reduced access to credit for many individuals and businesses. Marketplace lending platforms have filled this gap by providing an alternative source of financing for those who may not meet the criteria of traditional lenders.

Underlying macroeconomic factors: The development of the marketplace lending market in Portugal is also influenced by underlying macroeconomic factors. The country has experienced a steady economic recovery in recent years, with improving employment rates and disposable incomes. This has increased consumer confidence and willingness to take on loans to finance various needs and expenses. Additionally, low interest rates in the Eurozone have made borrowing more affordable, further driving demand for marketplace lending. In conclusion, the Marketplace Lending (Consumer) market in Portugal is growing and evolving due to customer preferences for convenience and competitive interest rates. The use of technology and data analytics is a key trend in the market, allowing for faster loan approvals and personalized loan terms. Specialized marketplace lending platforms are also emerging to cater to specific consumer segments. Local circumstances, such as high household debt and limited access to traditional credit, have contributed to the growth of marketplace lending in Portugal. Lastly, underlying macroeconomic factors, such as economic recovery and low interest rates, have further fueled the development of the market.

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.