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Marketplace Lending (Consumer) - United Kingdom

United Kingdom

Total transaction value in the MarketMarketplace Lending (Consumer) market market in the United Kingdom is forecasted to reach €0.21bn in 2024.
When compared globally, it is evident that the highest transaction value is anticipated the United States (€25,440m in 2024).
The Key Market Indicators offer a comprehensive view of the social and economic landscape of the United Kingdom, shedding light on pertinent market-specific trends.
These indicators, in conjunction with information from statistical offices, trade associations, and businesses, form the basis for the Statista market models.
Amid Brexit uncertainties, the United Kingdom's consumer marketplace lending sector sees increased interest from investors seeking alternative capital-raising opportunities.

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

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Región

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Analyst Opinion

The Marketplace Lending (Consumer) market in United Kingdom has experienced significant growth in recent years.

Customer preferences: Consumers in the United Kingdom are increasingly turning to marketplace lending platforms as an alternative to traditional banks for their borrowing needs. This shift in preference can be attributed to several factors. Firstly, marketplace lending offers borrowers a streamlined and convenient application process, often with faster approval times compared to traditional banks. Additionally, the ability to access multiple lenders through a single platform provides borrowers with a greater chance of securing a loan at competitive interest rates. Furthermore, marketplace lending platforms often cater to borrowers with lower credit scores, who may have difficulty obtaining loans from traditional banks. This inclusivity has resonated with a wide range of borrowers in the United Kingdom.

Trends in the market: One prominent trend in the marketplace lending market in the United Kingdom is the increasing popularity of peer-to-peer lending platforms. These platforms connect individual lenders directly with borrowers, eliminating the need for intermediaries such as banks. This peer-to-peer lending model has gained traction due to its ability to offer competitive interest rates to borrowers while providing lenders with attractive returns on their investments. As a result, more and more individuals in the United Kingdom are participating in peer-to-peer lending, either as borrowers or lenders. Another trend in the marketplace lending market in the United Kingdom is the emergence of specialized lending platforms. These platforms cater to specific borrower segments, such as small businesses or students. By focusing on these niche markets, specialized lending platforms are able to offer tailored loan products and services that meet the unique needs of these borrowers. This trend reflects the growing demand for customized lending solutions in the United Kingdom.

Local special circumstances: One special circumstance that has contributed to the development of the marketplace lending market in the United Kingdom is the regulatory environment. The Financial Conduct Authority (FCA), the regulatory body overseeing marketplace lending in the United Kingdom, has implemented regulations to protect consumers and promote fair lending practices. These regulations have helped to build trust and confidence in the marketplace lending industry, attracting both borrowers and lenders to the market.

Underlying macroeconomic factors: Several macroeconomic factors have also played a role in the development of the marketplace lending market in the United Kingdom. Firstly, the low interest rate environment in the country has made borrowing more affordable, encouraging consumers to seek out loans. Additionally, the economic recovery following the global financial crisis has led to increased consumer confidence and a greater willingness to borrow. These factors, combined with the convenience and accessibility offered by marketplace lending platforms, have contributed to the growth of the market in the United Kingdom. Overall, the Marketplace Lending (Consumer) market in United Kingdom is experiencing growth due to customer preferences for convenience and inclusive lending options, as well as the emergence of peer-to-peer lending platforms and specialized lending platforms. The regulatory environment and underlying macroeconomic factors have also played a role in shaping 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.