Marketplace Lending (Consumer) - Thailand

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Thailand is forecasted to reach US$9.63m in 2024.
When comparing globally, it is evident that the highest transaction value is expected the United States (US$28bn in 2024).
The Key Market Indicators offer a glimpse into the social and economic landscape of Thailand, shedding light on market-specific trends.
These indicators, combined with data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
Thailand's Marketplace Lending sector is witnessing a surge in consumer capital raising through innovative digital platforms and increased investor confidence.

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 Thailand is experiencing significant growth and development.

Customer preferences: Thailand is a country with a large population and a growing middle class. As a result, there is a strong demand for consumer loans. However, traditional banks have been slow to meet this demand due to strict lending criteria and lengthy approval processes. This has created an opportunity for marketplace lending platforms to fill the gap by offering quick and convenient loan services to consumers.

Trends in the market: One of the key trends in the marketplace lending market in Thailand is the increasing adoption of digital technologies. Consumers are becoming more comfortable with online transactions and are increasingly turning to marketplace lending platforms for their borrowing needs. This trend is driven by the convenience and speed of the online application process, as well as the ability to compare multiple loan offers in one place. Another trend in the market is the diversification of loan products offered by marketplace lending platforms. While initially focused on personal loans, these platforms are now expanding into other types of consumer loans, such as education loans, auto loans, and small business loans. This diversification is driven by the increasing demand for these types of loans and the platforms' ability to leverage their existing technology infrastructure to offer new products.

Local special circumstances: One of the unique aspects of the marketplace lending market in Thailand is the presence of strong local players. These local platforms have a deep understanding of the local market and have tailored their offerings to meet the specific needs of Thai consumers. They have also built strong relationships with local banks and financial institutions, which has helped them gain credibility and trust among consumers.

Underlying macroeconomic factors: The growth of the marketplace lending market in Thailand is also influenced by underlying macroeconomic factors. The country has a stable economy and a growing middle class, which has led to an increase in consumer spending and borrowing. Additionally, the government has implemented policies to promote financial inclusion and support the growth of the fintech industry, which has created a favorable environment for marketplace lending platforms to operate. In conclusion, the Marketplace Lending (Consumer) market in Thailand is experiencing significant growth and development due to customer preferences for quick and convenient loan services, the increasing adoption of digital technologies, the diversification of loan products, the presence of strong local players, and underlying macroeconomic factors such as a stable economy and government support for the fintech industry.

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.