Marketplace Lending (Consumer) - Sweden

Total transaction value in the MarketMarketplace Lending (Consumer) market market in Sweden is forecasted to reach US$79.36m in 2024.
When comparing globally, the United States is expected to achieve the highest transaction value, reaching US$28bn in 2024.
Key Market Indicators offer a snapshot of the social and economic landscape of Sweden, shedding light on market-specific trends.
These indicators, in conjunction with information from statistical offices, trade associations, and businesses, underpin the Statista market models.
Sweden's marketplace lending sector is witnessing a surge in consumer capital raising, fueled by innovative fintech platforms and strong investor appetite.

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 Sweden has been experiencing significant growth in recent years.

Customer preferences: Swedish consumers have shown a strong preference for online lending platforms due to their convenience and accessibility. These platforms provide borrowers with a quick and easy way to obtain loans, without the need for traditional banks or lengthy application processes. Additionally, the transparency and competitive interest rates offered by marketplace lenders have also attracted Swedish borrowers.

Trends in the market: One of the key trends in the Swedish marketplace lending market is the increasing demand for peer-to-peer (P2P) lending. P2P lending platforms connect individual lenders with borrowers, allowing for more personalized lending experiences. This trend has been driven by the desire for borrowers to have more control over their loan terms and interest rates, as well as the potential for higher returns for lenders compared to traditional savings accounts. Another trend in the market is the emergence of niche lending platforms that cater to specific borrower segments. For example, there are now marketplace lenders in Sweden that specialize in lending to small businesses, students, or individuals with low credit scores. These platforms leverage technology and data analytics to assess the creditworthiness of borrowers and offer tailored loan products to meet their unique needs.

Local special circumstances: Sweden's strong digital infrastructure and high internet penetration rate have contributed to the growth of the marketplace lending market. The country has a highly tech-savvy population, with a large percentage of the population using smartphones and accessing the internet regularly. This has created a favorable environment for online lending platforms to thrive and attract borrowers. Additionally, the Swedish regulatory environment has been supportive of marketplace lending. The Financial Supervisory Authority of Sweden has implemented regulations to ensure the fair treatment of borrowers and lenders, while also promoting innovation in the financial sector. This has provided a level of trust and confidence in marketplace lending platforms, further driving their adoption in the country.

Underlying macroeconomic factors: The growth of the marketplace lending market in Sweden can also be attributed to underlying macroeconomic factors. The country has a stable economy with low interest rates, making it an attractive market for borrowers seeking affordable loans. Additionally, the high level of household debt in Sweden has created a demand for alternative lending options, as traditional banks may have stricter lending criteria. Furthermore, the COVID-19 pandemic has accelerated the adoption of marketplace lending in Sweden. The economic uncertainty caused by the pandemic has led to increased demand for loans, as individuals and businesses seek financial support. Marketplace lending platforms have been able to quickly respond to this demand and provide borrowers with the necessary funds, contributing to the growth of the market. In conclusion, the Marketplace Lending (Consumer) market in Sweden has been experiencing significant growth due to customer preferences for online lending platforms, the emergence of niche lending platforms, the country's digital infrastructure and regulatory environment, and underlying macroeconomic factors. These factors have created a favorable environment for marketplace lending to thrive and meet the evolving needs of Swedish borrowers.

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.