Market Insights Financial Capital Raising Digital Capital Raising

Marketplace Lending (Consumer) - Vietnam

Vietnam

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Vietnam is forecasted to reach US$6.72m in 2024.
When compared globally, it is evident that the United States leads with a transaction value of US$27,720m in the same year.
Key Market Indicators offer a glimpse into the social and economic landscape of Vietnam, shedding light on market-specific trends.
These indicators, along with data from statistical offices, trade associations, and companies, form the basis for Statista market models.
Vietnam's Marketplace Lending sector is experiencing a surge in consumer capital raising, driven by increasing demand for alternative financing solutions.

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

Market

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Analyst Opinion

Marketplace lending, also known as peer-to-peer lending, has been gaining popularity in Vietnam in recent years. This alternative form of lending allows individuals to borrow money directly from other individuals, bypassing traditional financial institutions.

Customer preferences: Vietnamese borrowers are increasingly turning to marketplace lending platforms for a variety of reasons. Firstly, these platforms offer a convenient and efficient way to access credit. The application process is typically quick and easy, with borrowers able to complete the entire process online. Additionally, marketplace lending platforms often have more lenient eligibility criteria compared to traditional banks, making it easier for individuals with limited credit history or lower income levels to obtain loans.

Trends in the market: One notable trend in the Vietnamese marketplace lending market is the growth of online lending platforms focused on specific sectors or target groups. For example, there are platforms that specialize in providing loans for small businesses, while others cater to the needs of students or low-income individuals. This specialization allows lenders to better understand the unique needs and risks associated with these borrowers, leading to more tailored loan products and potentially lower default rates. Another trend is the increasing use of technology and data analytics in the underwriting process. Marketplace lending platforms in Vietnam are leveraging technology to collect and analyze vast amounts of data, allowing them to make more accurate assessments of borrowers' creditworthiness. This data-driven approach not only speeds up the loan approval process but also helps to mitigate the risk of default.

Local special circumstances: Vietnam is a rapidly developing country with a growing middle class and a strong entrepreneurial spirit. However, access to credit has traditionally been a challenge for many individuals and small businesses. Traditional banks often have strict lending criteria and may require collateral or extensive documentation, making it difficult for certain segments of the population to obtain loans. Marketplace lending platforms have emerged as an alternative source of financing, filling this gap in the market.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the marketplace lending market in Vietnam. Firstly, the country has a young and tech-savvy population, with high smartphone penetration and internet usage. This has created a favorable environment for the growth of online lending platforms, as borrowers are comfortable conducting financial transactions online. Additionally, Vietnam has experienced strong economic growth in recent years, leading to an increase in disposable income and consumer spending. This has created demand for credit, particularly among individuals looking to finance big-ticket purchases or start their own businesses. Marketplace lending platforms have been able to meet this demand by providing accessible and affordable credit options. In conclusion, the marketplace lending market in Vietnam is growing due to customer preferences for convenience and accessibility, as well as the use of technology and data analytics in the underwriting process. The local special circumstances, such as limited access to traditional credit and a growing middle class, have also contributed to the development of this market. Overall, the marketplace lending industry in Vietnam is poised for further growth as more individuals and businesses recognize the benefits of this alternative form of financing.

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.