Consumer Credit Market Size

Global Consumer Credit Market size was valued at USD 12.2 Billion in 2023 and is poised to grow from USD 12.8 Billion in 2024 to USD 24.3 Billion by 2032, growing at a CAGR of 7.8% during the forecast period (2025-2032).

The increasing demand for financial flexibility and the rising ambitions of consumers within emerging economies are propelling the slow adoption of personal lending solutions. The availability of credit to finance the acquisition of goods and services, specifically among the burgeoning middle-class base of customers, is contributing profoundly to the expansion of the market. Besides, innovation of digital financial infrastructure like mobile banking, e-wallets, and online lending platforms has made borrowing easier and quicker, thus enhancing growth further. Innovation of new financial products that are tailored to serve various consumers has also increased participation of more borrowers in the credit system.

One of the principal drivers of growth is the shift globally towards the adoption of emerging technologies, most notably artificial intelligence, big data, and machine learning. Such technologies allow lenders to enhance the evaluation of risk profiles, enhance the approval process, and personalize loan products according to user behavior and financial data. New entrants in fintech are dislocating the traditional lending model by bringing onboard mobile-first platforms that resonate with younger, technology-aware consumers. In addition, deeper internet and smartphone penetration are broadening access to credit services for rural and historically underbanked areas and presenting new challenges for markets to expand.

At the same time, regulatory ambiguities and data protection and cybersecurity concerns continue to weigh on long-term growth. Banks have to deal with evolving regulatory regimes within jurisdictions, which can restrict product sets or slow down approvals. Further, more pervasive household indebtedness and delinquency in particular markets become causes of concern when it comes to consumers over-leverage, so risk management will become the only option for lenders. Synthesis among multiple heterogenous digital credit infrastructures and resistance from current banks towards transformation can even disrupt further application of technology-enabling credit products. Consequently, industry players must attain balance among innovation, safety, and wise lending in a quest to fuel consumer confidence as well as growth in the long term.

Is Digital Lending the New Normal in India?

The Indian online lending market has grown phenomenally from $9 billion in 2012 to $270 billion in 2022 with a 39.5% compound annual growth rate (CAGR). The growth has been on account of the fintech players coming into the picture utilizing alternative credit scores and online processes to address the credit supply-demand gap. The Reserve Bank of India's launch of the Unified Lending Interface (ULI) is an attempt to streamline digital lending process even further, enhancing convenience and efficiency for borrowers across the country.