Dublin, March 18, 2024 (GLOBE NEWSWIRE) -- The "Global Alternative Lending Market Intelligence Databook Subscription - Q1 2024" report has been added to ResearchAndMarkets.com's offering.
Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 10.1% during 2023-2027. The global alternative lending market is forecast to increase from US$566 million in 2022 to reach US$971.6 million by 2027.
Elevated inflation levels and interest rate environment has resulted in a robust growth environment for the global alternative lending industry in 2023. From Asia Pacific to Europe and North America, the market is poised to record strong growth over the next five years. Trends are similar in the Latin America and Middle East region, where demand for credit is growing among consumers as well as businesses.
Going forward, mergers and acquisition deals are expected to grow in the global alternative lending segment, as more and more players seek to enter the industry and expand into the global region. Strategic collaborations between fintech firms are expected to lead to new product launches in the market, thereby driving the competitive landscape and innovation in the industry. Overall, the alternative lending market is forecast to grow at an accelerated pace over the next five years.
The competitive landscape is poised to grow significantly in the Latin American alternative lending market
With a large chunk of the population falling under the unbanked and underbanked category, the Latin American market presents wide headroom for growth in the alternative lending market over the next five years. To tap into the growing opportunity and offer convenient lending solutions to consumers, fintech firms are entering the market with their innovative products.
In March 2023, Pismo, the fintech firm based in Brazil, introduced a lending tool in response to the growing credit demand among consumers. The lending tool is aimed at simplifying the process by disbursing loans digitally and at a faster speed compared to traditional banks.
The foray of these fintech firms into the growing alternative lending segment will further drive the competitive landscape, supporting the growth of the overall market from the short to medium-term perspective.
Africa-based alternative lending providers are raising funding rounds to launch new products and accelerate growth
In Africa, small and medium-sized enterprises find it difficult to access credit through traditional channels. As a result, alternative lending providers are in high demand among SMEs when it comes to access to credit. To serve the growing demand, firms are raising venture capital and private equity funding in Africa.
In February 2023, Lulalend, the South Africa-based digital lender, announced that the firm had raised US$35 million in a Series B funding round, which was led by Lightrock. Over the past three years, the firm had embedded its credit solution into partners such as Vodacom, e-commerce giant Takealot, and fintech firm Yoco to disburse credit to SMEs. Businesses operating in construction, retail, and hospitality are also seeking credit from Lulalend.
Going forward, more such SME-focused alternative lenders are expected to raise funding rounds in Africa to reduce the annual credit gap in the SME sector across the region over the next five years.
More and more fintech firms are foraying into the digital lending segment in the Asia Pacific region
Over the next five years, the Asia Pacific alternative lending market is poised to record accelerated growth, amid the growing demand for credit among consumers as well as businesses. With the high growth potential of the sector, many fintech firms are making their foray into the sector.
In India, Tiger Global-backed savings startups Jar revealed that the firm is foraying into the digital lending segment to tap into the credit-starved market. To provide credit services, the firm had entered into strategic alliances with the likes of Liquiloans and other non-banking financial institutions.
Jar's entry into the segment comes at a time when some of the leading fintech players have announced to enter the consumer lending market in India. PhonePe, for instance, is looking to apply for an NBFC license to enter the segment and diversify its revenue stream. Jupiter, the neo-banking platform, also secured an NBFC license from the central bank to offer lending products.
This report provides a thorough knowledge of alternative lending market dynamics, market size and forecast with more than 75+ KPIs. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.
Report Scope
Economic Indicators
- Gross Domestic Product at Current Prices
- Population
- Unbanked Population
- Unemployment Rate
- Loan Default Rate
Alternative Lending Market Size and Forecast
- Transaction Value
- Average Transaction Value
- Transaction Volume
Alternative Lending Market Size and Forecast by End User
- End User - Business
- End User - Consumer
Alternative Lending Market Size and Forecast by Finance Models
- P2P Marketplace Consumer Lending
- P2P Marketplace Business Lending
- P2P Marketplace Property Lending
- Balance Sheet Consumer Lending
- Balance Sheet Business Lending
- Balance Sheet Property Lending
- Invoice Trading
- Debt Based Securities
- Equity Based Crowd Funding
- Real Estate Crowd funding
Alternative Lending Market Size and Forecast by Payment Instrument - Transaction Value, Volume and Average Value
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Model
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Consumer Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Business Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Property Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Consumer Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Business Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Property Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Invoice Trading
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Debt Based Securities
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Equity Based Crowd Funding
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Real Estate Crowd funding
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Loan Types
- B2C Loans
- Personal Loan
- Payroll Advance
- Home Improvement
- Education/Student Loans
- Point of Sale
- Auto Loans
- Medical Loans
- B2B Loans
- Lines of Credit
- Merchant Cash Advance
- Invoice Factoring
- Revenue Financing
Alternative Lending Analysis by Consumer Attitude and Behaviour
- By Age
- By Income
- Gender
For more information about this report visit https://www.researchandmarkets.com/r/qb7tr4
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
