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Marketplace Lending (Consumer) - Brazil

Brazil

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Brazil is projected to reach €53.60m in 2024.
When comparing globally, it is evident that the United States leads with a transaction value of €25,700m in 2024.
Key Market Indicators offer a glimpse into the social and economic landscape of Brazil, 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 Brazil, the Marketplace Lending sector for consumer capital raising is experiencing a surge in online platforms providing accessible credit options to individuals.

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

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Analyst Opinion

The Marketplace Lending (Consumer) market in Brazil is experiencing significant growth and development. Customer preferences in the Brazilian Marketplace Lending (Consumer) market are driven by several factors.

Firstly, consumers in Brazil are increasingly seeking alternative lending options outside of traditional banks. This is due to the cumbersome and time-consuming loan application processes offered by traditional banks, as well as the higher interest rates charged. Marketplace lending platforms provide a more streamlined and efficient loan application process, with quicker approval times and competitive interest rates.

Additionally, consumers appreciate the transparency and flexibility offered by marketplace lenders, as they can easily compare loan options and choose the one that best suits their needs. Trends in the Brazilian Marketplace Lending (Consumer) market are influenced by global and regional market developments. One significant trend is the rise of peer-to-peer lending platforms.

These platforms connect borrowers directly with individual lenders, cutting out the middleman and reducing costs. This trend is driven by the increasing popularity of fintech companies in Brazil, which are disrupting the traditional banking sector. Another trend is the expansion of marketplace lending into new sectors, such as small business loans and auto financing.

This diversification of loan offerings allows marketplace lenders to cater to a wider range of customer needs and increase their market share. Local special circumstances in Brazil contribute to the development of the Marketplace Lending (Consumer) market. The country has a large unbanked population, with many individuals lacking access to traditional banking services.

Marketplace lending platforms provide an opportunity for these individuals to access credit and improve their financial situation. Additionally, Brazil has a high level of smartphone penetration, making it easier for consumers to access and use marketplace lending platforms. This digital infrastructure enables marketplace lenders to reach a larger customer base and expand their operations.

Underlying macroeconomic factors also play a role in the growth of the Brazilian Marketplace Lending (Consumer) market. Brazil has experienced economic instability in recent years, with high inflation and interest rates. This has made traditional bank loans less attractive for consumers, leading them to seek alternative lending options.

Additionally, the government has implemented policies to promote financial inclusion and stimulate the growth of the fintech sector. These factors create a favorable environment for marketplace lending platforms to thrive and attract customers. In conclusion, the Marketplace Lending (Consumer) market in Brazil is developing rapidly due to customer preferences for alternative lending options, global and regional trends in marketplace lending, local special circumstances such as a large unbanked population and high smartphone penetration, and underlying macroeconomic factors such as economic instability and government policies.

This market is expected to continue growing as more consumers embrace marketplace lending as a convenient and accessible way to access credit.

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.