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Marketplace Lending (Consumer) - Southern Africa

Southern Africa

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Southern Africa is forecasted to reach US$65.7m in 2024.
When compared globally, it is notable that the United States leads with a transaction value of US$26,720m in 2024.
Key Market Indicators offer a comprehensive view of the social and economic landscape of the region, shedding light on pertinent market-specific trends.
These indicators, supported by data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
In Southern Africa, Marketplace Lending platforms are gaining traction as an alternative source for consumer capital raising, diversifying the financial landscape.

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

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Analyst Opinion

The Marketplace Lending (Consumer) market in Southern Africa is experiencing significant growth and development.

Customer preferences: Customers in Southern Africa are increasingly turning to marketplace lending platforms for their borrowing needs. This is due to the convenience and efficiency offered by these platforms, as well as the ability to access credit quickly and easily. Additionally, marketplace lending platforms often offer more competitive interest rates compared to traditional financial institutions, making them an attractive option for borrowers.

Trends in the market: One of the key trends in the marketplace lending market in Southern Africa is the increasing use of mobile technology. With a high mobile penetration rate in the region, borrowers are able to access lending platforms and apply for loans directly from their smartphones. This has made the borrowing process even more convenient and accessible, further driving the growth of the marketplace lending market. Another trend in the market is the rise of peer-to-peer lending platforms. These platforms connect individual lenders with borrowers, cutting out the need for traditional financial intermediaries. This has created new opportunities for lenders to earn attractive returns on their investments, while providing borrowers with access to credit that may not have been available to them through traditional channels.

Local special circumstances: Southern Africa is a region with a large unbanked population, meaning that a significant portion of the population does not have access to traditional banking services. Marketplace lending platforms have emerged as a viable alternative for these individuals, providing them with access to credit that they may not have otherwise been able to obtain. This has contributed to the rapid growth of the marketplace lending market in the region.

Underlying macroeconomic factors: The growth of the marketplace lending market in Southern Africa can also be attributed to underlying macroeconomic factors. The region has experienced economic growth in recent years, which has led to an increase in consumer spending and borrowing. Additionally, traditional financial institutions in the region have been slow to adapt to changing customer preferences and have struggled to meet the demand for credit. This has created a gap in the market that marketplace lending platforms have been able to fill. In conclusion, the Marketplace Lending (Consumer) market in Southern Africa is growing rapidly due to customer preferences for convenience and competitive interest rates. The increasing use of mobile technology and the rise of peer-to-peer lending platforms are key trends driving this growth. The region's large unbanked population and underlying macroeconomic factors have also contributed to the development of the marketplace lending market.

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.