Market Insights Financial Capital Raising Digital Capital Raising

Marketplace Lending (Consumer) - Zambia

Zambia

The country in Zambia is projected to see a total transaction value in the MarketMarketplace Lending (Consumer) market market reach US$152.8m in 2024.
When compared globally, it is notable that the United States leads with a transaction value of US$26,720m in the same year.
Key Market Indicators offer a glimpse into the social and economic landscape of Zambia, shedding light on market-specific trends.
These indicators, supported by data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
In Zambia, Marketplace Lending for consumer capital raising is gaining traction due to increasing digital financial inclusion initiatives.

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

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Analyst Opinion

Marketplace lending in Zambia is experiencing significant growth as consumers increasingly turn to online platforms to access credit. This trend is driven by a combination of customer preferences, local special circumstances, and underlying macroeconomic factors.

Customer preferences in Zambia are shifting towards online lending platforms due to their convenience and accessibility. Traditional lending institutions in the country often have strict eligibility criteria and lengthy application processes, making it difficult for many individuals to access credit. Marketplace lending platforms, on the other hand, offer a streamlined and user-friendly experience, allowing borrowers to apply for loans online and receive funds quickly.

This appeals to a wide range of consumers, including those who are underserved by traditional financial institutions. Trends in the marketplace lending market in Zambia are also influenced by global and regional developments. The rise of financial technology (fintech) has revolutionized the lending industry worldwide, and Zambia is no exception.

Fintech companies are leveraging technology to provide innovative solutions to traditional financial services, including lending. This has led to the emergence of a vibrant marketplace lending sector in the country, with both local and international players entering the market. Furthermore, the COVID-19 pandemic has accelerated the adoption of online lending platforms in Zambia.

The economic impact of the pandemic has left many individuals and businesses in need of financial assistance. Marketplace lending platforms have stepped in to fill this gap, providing quick and accessible credit to those in need. This has further boosted the growth of the marketplace lending market in Zambia.

Local special circumstances also play a role in the development of the marketplace lending market in Zambia. The country has a large unbanked population, with many individuals lacking access to formal financial services. Marketplace lending platforms offer an alternative to traditional banks, allowing individuals to access credit without the need for a bank account.

This has opened up opportunities for financial inclusion and economic empowerment in Zambia. Underlying macroeconomic factors, such as economic growth and stability, also contribute to the development of the marketplace lending market in Zambia. The country has experienced steady economic growth in recent years, which has increased the demand for credit.

Additionally, the government has implemented policies to promote financial inclusion and support the growth of the fintech sector. These factors create a favorable environment for the marketplace lending market to thrive. In conclusion, the marketplace lending market in Zambia is experiencing rapid growth due to customer preferences, global and regional trends, local special circumstances, and underlying macroeconomic factors.

As more consumers in Zambia seek convenient and accessible credit options, marketplace lending platforms are well-positioned to meet this demand and drive further growth in the market.

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.