Marketplace Lending (Consumer) - Ukraine

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Ukraine is projected to reach US$3.83m in 2024.
When considering a global perspective, it is evident that the highest transaction value is expected the United States (US$28bn in 2024).
Key Market Indicators offer a glimpse into the social and economic landscape of Ukraine, 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.
In Ukraine, Marketplace Lending for Consumer Capital Raising is gaining traction due to increasing demand for alternative financing solutions.

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 Ukraine is experiencing significant growth and development.

Customer preferences: In recent years, there has been a growing demand for alternative lending options in Ukraine. Consumers are increasingly turning to marketplace lending platforms as a convenient and efficient way to access credit. The ease of online application processes and quick loan disbursal have made marketplace lending an attractive option for borrowers. Additionally, the ability to compare multiple loan offers from different lenders has empowered consumers to make more informed decisions about their borrowing needs.

Trends in the market: One of the key trends in the marketplace lending market in Ukraine is the emergence of peer-to-peer (P2P) lending platforms. These platforms connect individual lenders with borrowers, eliminating the need for traditional financial intermediaries. P2P lending has gained popularity due to its ability to offer competitive interest rates and flexible loan terms. This trend is driven by the increasing digitization of financial services and the desire for greater transparency and control over financial transactions. Another trend in the market is the expansion of marketplace lending beyond traditional personal loans. Lenders are now offering a wider range of loan products, including small business loans, student loans, and even loans for specific purposes such as home renovations or medical expenses. This diversification of loan offerings has attracted a larger customer base and has contributed to the overall growth of the marketplace lending market in Ukraine.

Local special circumstances: Ukraine has a large unbanked population, with a significant portion of the population lacking access to traditional banking services. This presents a unique opportunity for marketplace lending platforms to fill the gap and provide financial services to underserved individuals. The convenience and accessibility of online lending platforms make them particularly well-suited to cater to this segment of the population. Furthermore, the economic instability in Ukraine has also contributed to the growth of marketplace lending. Traditional banks have become more cautious in their lending practices, making it difficult for many individuals and small businesses to obtain credit. Marketplace lending platforms, on the other hand, have been able to adapt to the changing economic conditions and provide much-needed financing to borrowers who may not meet the strict criteria of traditional lenders.

Underlying macroeconomic factors: The development of the marketplace lending market in Ukraine is also influenced by macroeconomic factors. The country has been undergoing a process of economic reform and modernization, which has led to an increase in disposable income and a growing middle class. This has created a greater demand for credit and has fueled the growth of marketplace lending. Additionally, the low interest rate environment in Ukraine has made borrowing more attractive for consumers. With interest rates on traditional bank loans remaining high, marketplace lending platforms are able to offer more competitive rates, making them an appealing alternative for borrowers. In conclusion, the Marketplace Lending (Consumer) market in Ukraine is experiencing significant growth and development due to customer preferences for convenience and transparency, the emergence of P2P lending platforms, the diversification of loan offerings, the opportunity to serve the unbanked population, the economic instability in the country, and underlying macroeconomic factors such as economic reform and low interest rates.

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.