Marketplace Lending (Consumer) - Romania

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Romania is projected to reach US$36.34m in 2024.
When compared globally, it is notable that the highest transaction value is projected to be reached the United States (US$28bn in 2024).
Key Market Indicators offer a comprehensive view of the social and economic landscape of Romania, providing valuable insights into market-specific advancements.
These indicators, in conjunction with data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
In Romania, the Marketplace Lending sector is experiencing a surge in consumer Capital Raising activities, driven by increasing demand for alternative financing options.

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 has gained significant traction in Romania, with consumers increasingly turning to online platforms to access credit. This emerging trend can be attributed to several factors, including changing customer preferences, the rise of digital technology, and favorable local circumstances.

Customer preferences: In Romania, consumers are increasingly seeking convenient and accessible lending options. Traditional banks have historically dominated the lending market, but their lengthy application processes and stringent eligibility criteria have created a gap that marketplace lenders are now filling. These online platforms offer a streamlined application process, quick approval times, and competitive interest rates, making them an attractive alternative for borrowers.

Trends in the market: One of the key trends in the Romanian marketplace lending market is the growing popularity of peer-to-peer (P2P) lending. This model allows individuals to lend and borrow directly from each other, bypassing traditional financial intermediaries. P2P lending platforms have gained traction in Romania due to their ability to offer competitive interest rates and flexible loan terms. This trend is likely to continue as more consumers become aware of the benefits and convenience of P2P lending. Another trend in the market is the increasing collaboration between marketplace lenders and traditional financial institutions. This partnership allows lenders to leverage the extensive customer base and infrastructure of banks, while banks benefit from the technological innovation and customer-centric approach of marketplace lenders. This collaboration is expected to fuel further growth in the marketplace lending market in Romania.

Local special circumstances: Romania has a relatively high percentage of unbanked or underbanked individuals, meaning they have limited access to traditional financial services. Marketplace lending platforms provide an opportunity for these individuals to access credit and improve their financial situation. Additionally, the country has a high internet penetration rate, making it easier for consumers to access online lending platforms and complete the application process.

Underlying macroeconomic factors: The Romanian economy has experienced steady growth in recent years, creating a favorable environment for marketplace lending. As the economy expands, consumers have a greater need for credit to finance various expenses, such as home improvements, education, or starting a business. Marketplace lending platforms are well-positioned to meet this demand, offering flexible loan options tailored to individual needs. Furthermore, the low interest rate environment in Romania has made borrowing more affordable for consumers. This has incentivized individuals to seek credit and take advantage of the favorable lending conditions offered by marketplace lenders. In conclusion, the Marketplace Lending (Consumer) market in Romania is experiencing significant growth due to changing customer preferences, the rise of P2P lending, collaboration between marketplace lenders and traditional financial institutions, local special circumstances, and underlying macroeconomic factors. As more consumers embrace online lending platforms, the marketplace lending market in Romania is expected to continue its upward trajectory.

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.