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Marketplace Lending (Consumer) - Southern Europe

Southern Europe

The MarketMarketplace Lending (Consumer) market market in Southern Europe is expected to achieve a total transaction value of US$0.5bn in 2024.
When compared globally, the United States leads with a projected transaction value of US$26,720m in the same year.
Key Market Indicators offer a glimpse into the social and economic landscape of the chosen region, shedding light on specific market trends.
These indicators, supported by data from statistical authorities, trade bodies, and businesses, form the basis for the Statista market forecasts.
In Southern Europe, Italy is experiencing a surge in Marketplace Lending for consumer capital raising, driven by innovative fintech platforms and increasing demand for alternative financing options.

Key regions: Singapore, United States, Israel, United Kingdom, Australia

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Analyst Opinion

The Marketplace Lending (Consumer) market in Southern Europe has been experiencing significant growth in recent years. Customer preferences in the region have shifted towards online lending platforms due to their convenience and ease of use.

Consumers are increasingly turning to marketplace lending as an alternative to traditional banks, as it offers faster and more streamlined loan application processes. Additionally, the transparency and competitive interest rates offered by online lenders have made them a popular choice among borrowers. One of the key trends in the market is the increasing demand for peer-to-peer (P2P) lending platforms.

P2P lending allows individuals to borrow and lend money directly to each other, cutting out the middleman and reducing costs. This model has gained traction in Southern Europe as it provides borrowers with access to credit that may not be available through traditional financial institutions. Another trend in the market is the rise of marketplace lending for specific purposes, such as small business loans or student loans.

These niche lending platforms cater to the unique needs of borrowers in Southern Europe, providing them with tailored loan products and services. Local special circumstances also play a role in the development of the marketplace lending market in Southern Europe. The region has a high percentage of unbanked or underbanked individuals, meaning they have limited access to traditional financial services.

Marketplace lending platforms offer an alternative for these individuals to access credit and financial services. Furthermore, Southern Europe has a strong entrepreneurial culture, with many individuals starting their own businesses. However, traditional banks often have strict lending criteria and may be hesitant to provide loans to small businesses.

Marketplace lending platforms have stepped in to fill this gap, offering flexible and accessible financing options for entrepreneurs. Underlying macroeconomic factors have also contributed to the growth of the marketplace lending market in Southern Europe. The region has faced economic challenges in recent years, with slow economic growth and high unemployment rates.

This has led to a greater need for alternative sources of financing, as individuals and businesses seek funding to support their financial needs. In conclusion, the Marketplace Lending (Consumer) market in Southern Europe is developing rapidly due to customer preferences for online lending platforms, the rise of P2P lending, the demand for niche lending products, local special circumstances, and underlying macroeconomic factors. As these trends continue to shape the market, we can expect further growth and innovation in the marketplace lending industry in Southern Europe.

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.