Market Insights Financial Capital Raising Digital Capital Raising

Marketplace Lending (Consumer) - Western Asia

Western Asia

The projected total transaction value in the MarketMarketplace Lending (Consumer) market market in Western Asia is expected to reach US$99.96m in 2024.
When compared globally, the United States is anticipated to have the highest transaction value, reaching US$27,720m in the same year.
Key Market Indicators offer a glimpse into the social and economic landscape of the chosen region, shedding light on market-specific trends.
These indicators, along with data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
In Western Asia, Marketplace Lending in the Capital Raising market is gaining traction among tech-savvy investors seeking alternative investment opportunities in the region.

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

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Analyst Opinion

The Marketplace Lending (Consumer) market in Western Asia is experiencing significant growth and development.

Customer preferences: Customers in Western Asia are increasingly turning to marketplace lending platforms for their borrowing needs. This is due to several factors, including the convenience and accessibility of these platforms, as well as the ability to access loans quickly and easily. Additionally, marketplace lending platforms often offer competitive interest rates and flexible repayment terms, making them an attractive option for borrowers in Western Asia.

Trends in the market: One of the key trends in the marketplace lending market in Western Asia is the increasing adoption of digital technologies. This includes the use of mobile applications and online platforms to connect borrowers with lenders. This trend is driven by the high smartphone penetration rate in Western Asia, as well as the growing popularity of online banking and financial services. Another trend in the market is the emergence of specialized marketplace lending platforms. These platforms cater to specific segments of the market, such as small business loans or student loans. By focusing on specific niches, these platforms are able to provide tailored solutions to borrowers in Western Asia, meeting their unique needs and requirements.

Local special circumstances: One of the unique characteristics of the marketplace lending market in Western Asia is the presence of Islamic finance principles. Islamic finance prohibits the charging of interest, which poses a challenge for traditional lending models. However, marketplace lending platforms in Western Asia have adapted to this requirement by offering Sharia-compliant financing options, which adhere to the principles of Islamic finance. This has helped to attract a large number of borrowers in Western Asia who prefer Islamic finance products.

Underlying macroeconomic factors: The growth of the marketplace lending market in Western Asia can also be attributed to favorable macroeconomic factors. Western Asia has experienced strong economic growth in recent years, which has led to an increase in disposable incomes and a growing middle class. This has created a demand for credit and financing options, which marketplace lending platforms have been able to meet. Furthermore, the regulatory environment in Western Asia has been supportive of marketplace lending. Governments in the region have recognized the potential of marketplace lending to promote financial inclusion and stimulate economic growth. As a result, they have implemented regulations that encourage the development of marketplace lending platforms and provide a framework for their operations. In conclusion, the Marketplace Lending (Consumer) market in Western Asia is growing rapidly due to customer preferences for convenience and accessibility, the adoption of digital technologies, the emergence of specialized platforms, the presence of Islamic finance principles, and favorable macroeconomic factors. These factors have created a conducive environment for the development of marketplace lending in Western Asia, and the market is expected to continue to expand in the coming years.

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.