Market Insights Financial Capital Raising Digital Capital Raising

Marketplace Lending (Consumer) - Asia

Asia

Total transaction value in the Consumer Marketplace Lending market in Asia is expected to hit €0.96bn by 2024.
When comparing globally, the United States leads with a transaction value of €25,440m in 2024.
Key Market Indicators offer a snapshot of the social and economic landscape of the region, shedding light on market-specific trends.
These indicators, backed by data from statistical offices, trade associations, and businesses, form the basis for Statista's market projections.
In Asia, Marketplace Lending in Consumer Capital Raising is experiencing rapid growth due to increasing demand for alternative financing options.

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

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Analyst Opinion

The Marketplace Lending (Consumer) market in Asia has been experiencing significant growth in recent years.

Customer preferences: Asian consumers are increasingly turning to marketplace lending platforms for their borrowing needs. This is due to several factors, including the convenience and speed of the application process, as well as the ability to access funds without the need for traditional financial institutions. Additionally, marketplace lending platforms often offer more competitive interest rates and flexible repayment terms compared to traditional lenders.

Trends in the market: One major trend in the Asian marketplace lending market is the rise of peer-to-peer (P2P) lending platforms. These platforms connect individual borrowers with individual lenders, cutting out the middleman and reducing costs for both parties. P2P lending has gained popularity in Asia due to the large unbanked population in many countries, as well as the increasing number of tech-savvy individuals who are comfortable with online financial transactions. Another trend in the Asian marketplace lending market is the increasing focus on financial inclusion. Many marketplace lending platforms in Asia are targeting underserved populations, such as small business owners and individuals with limited credit history. These platforms use alternative data sources and innovative credit assessment models to evaluate the creditworthiness of borrowers who may not have access to traditional credit. This is helping to bridge the credit gap and provide financial opportunities to those who were previously excluded from the formal financial system.

Local special circumstances: Each country in Asia has its own unique set of circumstances that influence the development of the marketplace lending market. For example, in China, the government has implemented regulations to promote the growth of marketplace lending platforms, while also ensuring consumer protection. This has led to a booming marketplace lending industry in the country. In contrast, countries like India and Indonesia are still in the early stages of marketplace lending development, but are poised for significant growth due to their large populations and increasing internet penetration rates.

Underlying macroeconomic factors: The growth of the marketplace lending market in Asia is also influenced by underlying macroeconomic factors. For example, the region's strong economic growth has led to an increase in consumer spending and borrowing. Additionally, the high mobile penetration rates in many Asian countries have made it easier for consumers to access marketplace lending platforms through their smartphones. Finally, the low interest rate environment in many Asian countries has made marketplace lending a more attractive option for borrowers compared to traditional lenders. Overall, the Marketplace Lending (Consumer) market in Asia is experiencing rapid growth due to customer preferences for convenience and competitive rates, as well as the emergence of P2P lending platforms and a focus on financial inclusion. The unique circumstances and underlying macroeconomic factors in each country are also contributing to the development of the marketplace lending market in Asia.

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.