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Marketplace Lending (Consumer) - South America

South America

The total transaction value in the MarketMarketplace Lending (Consumer) market market in South America is forecasted to reach US$124.40m in 2024.
When compared globally, it is evident that the United States leads with a transaction value of US$27,720m in 2024.
Key Market Indicators offer a glimpse into the social and economic landscape of the region and offer valuable insights into specific market trends.
These indicators, combined with data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
In Brazil's consumer marketplace lending sector, innovative fintech platforms are revolutionizing capital raising through streamlined processes and increased access to credit.

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

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Analyst Opinion

Marketplace lending (consumer) in South America has been experiencing significant growth and development 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 South America have shifted towards online and digital platforms for financial services. This is driven by the increasing penetration of internet and smartphone usage in the region. Consumers are now more comfortable with conducting financial transactions online, including borrowing and lending money.

The convenience and accessibility of marketplace lending platforms have made them an attractive alternative to traditional banks for many South American consumers. Trends in the marketplace lending market in South America reflect the global trends in the industry. One of the key trends is the rise of peer-to-peer lending platforms.

These platforms connect borrowers directly with individual lenders, bypassing the need for traditional financial intermediaries. This has democratized lending and made it more inclusive, especially for individuals who may have difficulty accessing credit from traditional sources. Another trend is the increasing use of data analytics and technology to assess creditworthiness and streamline the loan application process.

This has made it easier and faster for consumers to obtain loans, further driving the growth of marketplace lending in South America. Local special circumstances in South America also contribute to the development of the marketplace lending market. One such circumstance is the high level of unbanked and underbanked individuals in the region.

Many people in South America do not have access to traditional banking services, making marketplace lending platforms a viable alternative for their financial needs. Additionally, the prevalence of informal economies in some South American countries creates a demand for alternative financing options. Marketplace lending platforms can provide loans to individuals and small businesses that may not meet the strict requirements of traditional banks.

Underlying macroeconomic factors in South America also play a role in the growth of marketplace lending. Economic instability and volatility in some countries have led to a decrease in lending from traditional financial institutions. Marketplace lending platforms can fill this gap by providing loans to individuals and businesses that are unable to access credit from traditional sources.

Additionally, low interest rates in some South American countries have made borrowing more affordable, further driving the demand for marketplace lending. In conclusion, the marketplace lending (consumer) market in South America is developing rapidly due to changing customer preferences, emerging trends in the industry, local special circumstances, and underlying macroeconomic factors. The convenience and accessibility of marketplace lending platforms, combined with the rise of peer-to-peer lending and the use of technology, have made them a popular choice for many South American consumers.

The high level of unbanked and underbanked individuals, as well as economic instability in some countries, further contribute to the growth of marketplace lending in the region.

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.