Marketplace Lending (Consumer) - Southeast Asia

Total transaction value in the MarketMarketplace Lending (Consumer) market market in Southeast Asia is expected to reach US$46.71m in 2024.
When compared globally, the United States leads with a transaction value of US$28bn in the same year.
Key Market Indicators offer a comprehensive view of the social and economic landscape of the region, shedding light on market-specific trends.
These indicators, along with data from statistical agencies, trade bodies, and enterprises, form the basis for the Statista market forecasts.
In Indonesia, the Marketplace Lending sector for consumer capital raising is experiencing rapid growth driven by increasing digital adoption and a young, tech-savvy population.

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 Southeast Asia has been experiencing significant growth in recent years. Customer preferences in the region have played a key role in driving the development of the marketplace lending market.

The convenience and accessibility of online platforms have made it easier for consumers to access loans, especially for those who may not have traditional banking relationships. Additionally, the ability to compare different loan options and interest rates online has empowered consumers to make more informed decisions. Trends in the market have also contributed to its growth.

For example, the rising middle class in Southeast Asia has led to an increase in demand for credit, particularly for consumer loans. This has created an opportunity for marketplace lenders to fill the gap left by traditional banks, which may have stricter lending criteria. Furthermore, the increasing use of smartphones and internet penetration in the region has made it easier for consumers to access marketplace lending platforms, further driving the growth of the market.

Local special circumstances in Southeast Asia have also played a role in the development of the marketplace lending market. For example, in countries like Indonesia and the Philippines, where a large portion of the population is unbanked or underbanked, marketplace lending platforms have provided an alternative source of credit. These platforms have been able to leverage technology to reach a wider audience and offer loans to individuals who may not have access to traditional banking services.

Underlying macroeconomic factors have also contributed to the growth of the marketplace lending market in Southeast Asia. For instance, the region has experienced robust economic growth in recent years, which has led to an increase in consumer spending and borrowing. This has created a favorable environment for marketplace lenders to expand their operations and cater to the growing demand for credit.

Additionally, low interest rates in the region have made borrowing more affordable, further fueling the growth of the marketplace lending market. Overall, the development of the Marketplace Lending (Consumer) market in Southeast Asia can be attributed to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. As more consumers in the region seek convenient and accessible credit options, marketplace lending platforms are well-positioned to continue growing and serving the needs 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.