USD 714.29 Billion
Fintech Lending Market Size, Share, Growth Analysis, By By Type(P2P Business Lending, P2P Consumer Lending), By By Application(Private Lending, Company Lending) - Industry Forecast 2024-2031
Report ID:
SQMIG40C2002 |
Region:
Global |
Published Date: February, 2024
Pages:
157
|
Tables:
63 |
Figures:
80
Fintech Lending Market Insights
Global Fintech Lending Market size was valued at USD 714.29 Billion in 2022 and is poised to grow from USD 910.01 Billion in 2023 to USD 6315.41 Billion by 2031, at a CAGR of 27.4% during the forecast period (2024-2031).
The global market for fintech lending refers to the offering of financial services, through digital platforms. These services, like loans and credit, are separate from conventional banking operations. In the last decade, this market has witnessed considerable growth. It has been reshaped in recent years.
Market innovation has resulted in transforming the way individuals and businesses get funding worldwide. The industry players have provided these two sectors with accessible convenient funding. Traditional methods use up a lot of time and effort. With fintech lending, these issues can be erased and borrowers can apply for loans through mobile apps or online. These factors have influenced market growth.
In order to assess who is creditworthy, fintech lenders use data analytics and Artificial Intelligence (AI). This easy financing technique drives individuals and small businesses to this market. In this market, peer-to-peer (P2P) lending platforms are dominating. These platforms offer individuals the opportunity to lend and borrow money directly from one another with no third-party involvement. This intermediary removal has simplified lending. This also offers better interest rates for borrowers and attractive returns for investors.
The adoption of fintech lending rose in the midst of the COVID-19 pandemic. Firms and individuals sought options with quick and accessible financial help. Even central banks and governments have understood the benefits of this market. Fintech lenders are vital in distributing stimulus funds efficiently.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
P2P Consumer Lending
Fastest Growth
P2P Business Lending
Growth Rate
27.4% CAGR
Global Fintech Lending Market ($ Bn)
Country Share for North America Region (%)
Global Fintech Lending Market Size By Type ($ Bn)
Global Fintech Lending Market Size By Type (%)
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Fintech Lending Market Segmental Analysis
The market is split into Private Lending and Company Lending, among others, based on Application. Division of market by type gives us the P2P Business Lending and P2P Consumer Lending segments, among others. The main market regions are Europe, Asia Pacific, North America, Latin America, and Middle East and Africa.
Analysis By Type
P2P Consumer Lending is at the top of the fintech lending market. People are looking for accessible and speedy financing. This segment offers them that for a diverse range of personal needs. These include educational expenses, debt payoffs, and home improvement, among others. Fintech platforms in this segment offer many benefits to borrowers. This ranges from streamlined application processes and faster approval times to competitive interest rates. This segment’s position can be credited to increasing digitalization which has fueled a culture of convenient online loan origination. As consumers grow more accustomed to online financial services, this segment will only grow further.
Though P2P Consumer Lending leads the market, P2P Business Lending is growing rapidly. They are faster and more efficient than traditional banks. SMEs are resorting to the use of fintech lending platforms. This is due to the convenience this market lends in the acquisition of working capital and getting money for business expansion, among other financial requirements. As the global economy evolves and more startups and self-made entrepreneurs look for easy financing options, this segment will keep expanding. The COVID-19 pandemic accelerated the adoption of online lending, driving the quick development of P2P Business Lending.
Analysis By Application
Private lending leads the fintech lending market. This application encompasses peer-to-peer (P2P) lending and online personal loans. It remains at the top due to its conveniently accessible financing options. There are several benefits this segment offers which solidifies its place in the market. These include its ability to cater to diverse financial needs, coupled with easy access and quicker approvals. This segment allows individuals to borrow money directly from others or through online lending platforms. Compared to traditional financing options, these loans are typically offered at competitive interest rates with more flexible terms.
On the other hand, the fintech lending market’s fastest-growing segment is Company lending. This category encompasses lending to businesses, including SMEs. Fintech lenders offer working and expansion capital to companies and fulfill several other financial needs. They use the current advanced technology for underwriting processes in businesses and loan origination. Emerging markets demand convenient financial solutions, driving this segment’s quick growth. The growing adoption of online lending platforms is also responsible for the explosive growth of this segment.
Global Fintech Lending Market By Type, 2023 (%)
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Fintech Lending Market Regional Insights
The fintech lending market is dominated by North America, with the US playing a critical role in this dominion. The region’s highly developed fintech ecosystem is responsible for its market position. This includes developed P2P lending channels and online lending platforms. The region’s regulatory environment favors the market, leading to further expansion. North America is also home to several major fintech hubs, such as Silicon Valley. North America leads the market because of leading fintech lending companies such as Prosper, LendingClub, and SoFi. These companies have originated a substantial volume of loans.
However, Asia-Pacific is quickly climbing the market ladder. Southeast Asian countries like China and India have largely contributed to the region’s explosive growth. The APAC region is experiencing high rates of digital adoption and has seen increased smartphone usage and ownership. Thus, fintech lending is flourishing in this region. China leads a thriving P2P lending industry, despite its compliance with regulatory shifts. Companies like Paytm and PhonePe in India have diversified into fintech services, serving market growth. Other southeast Asian markets were catching up quickly. Their young populace showed an interest in accessing credit digitally. As the region's economies continued to modernize, fintech lending was expected to expand further.
Global Fintech Lending Market By Region, 2024-2031
- Largest
- Fastest
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Fintech Lending Market Dynamics
Drivers
Digital Transformation and Convenience:
- The high usage of the internet and smartphones and the advancements in digital technology have greatly influenced the fintech lending market. Fintech platforms have opened up online avenues for consumers to easily access financial services. The general public and businesses can manage and apply for loans and receive approvals online. These platforms offer faster processing times compared to traditional banks. This is due to the streamlined user-friendly interfaces of fintech lending platforms.
Data Analytics and AI:
- Fintech lenders have devised faster and convenient methods to assess creditworthiness and make lending decisions. They employ advanced data analytics and AI algorithms for this. These technologies can help access and assess a large amount of data. The non-traditional data sources can range from social media and past transaction history to psychometric data and digital footprints. This ensures a better assessment of risk. AI-driven underwriting models have provided this market the chance to increase customer base. They can do so by offering loans to individuals and SMEs that were disregarded or not properly served by traditional financial institutions.
Restraints
Regulatory Challenges and Compliance:
- The scrutiny of various regulatory standards differing from jurisdiction to jurisdiction controls the fintech lending industry. The complex compliance with a different set of rules can be challenging and a waste of time. Fintech lenders may find it difficult to go through these intricate standards. Varying consumer protection laws and lending approvals can pose a major market problem. Fintech lending companies may find it challenging to conduct daily operations and execute expansion plans in the face of these evolving regulations.
Credit Risk and Default Rates:
- It can be risky to loan financial resources to people and firms with little to no credit history. Fintech lenders have created advanced algorithms to carefully assess credit risk, but there’s still room for error. The profit margins of these platforms may be negatively affected due to high credit risk and default rates. Unpredictable economic conditions, like the COVID-19 pandemic, can also result in a rise in default rates. This also creates a major risk to the growth of the fintech lending market.
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Fintech Lending Market Competitive Landscape
The global fintech lending market is defined by its competitive landscape. Players like P2P lending platforms, traditional and digital banks, and tech startups are engaged in fierce competition. Well-established financial names like Goldman Sachs and JPMorgan Chase have entered the fintech lending market. They have introduced their own digital lending online sites, which is typically a collaboration with fintech startups. To gain market share and maintain their position in the market, these firms leverage their extensive resources and brand recognition.
Some renowned fintech startups in the market are SoFi, LendingClub, and Funding Circle. They have dominated the online market, continuously finding ways to innovate more technology-driven lending versions. These startups use several tactics to maintain an advantage over other competitors. These include data analytics, customer histories, and algorithms built to assess risk. Peer-to-Peer lending platforms, like Prosper and Zopa, offer an alternative to traditional banking. This is done by them establishing a connection between borrowers and individual investors.
Digital banks, like Varo Money and Chime, have added fintech lending into their offered financial services. This is to appeal to younger and more tech-savvy consumers. In this market, the competition is fierce and the only edge is product differentiation. Players can do that through innovation, along with maintenance of customer trust and regulatory compliance. The market is flush with new entrants and collaborations, thus ensuring a competitive fintech lending ecosystem leading to overall market growth.
Top Player’s Company Profile
- Avant (USA)
- Kabbage (USA)
- Funding Circle (UK)
- Funding Societies (Singapore)
- Prosper Marketplace (USA)
- LendingClub (USA)
- OnDeck (USA)
- Qudian (China)
- SoFi (USA)
- Zopa (UK)
- Upgrade (USA)
- Yirendai (China)
- LendInvest (UK)
- Affirm (USA)
- Lufax (China)
- GreenSky (USA)
- Fellow Finance (Finland)
- Mintos (Latvia)
- Kreditech (Germany)
- FundingSecure (UK)
- Klarna (Sweden)
- Adyen (Netherlands)
- CommonBond (USA)
- Upstart (USA)
- SoFi (USA)
Recent Developments
- Goldman Sachs is a leading global investment banking, securities, and investment management firm. The American multinational corporation collaborated with Apple in February 2023. Apple is an American manufacturer of personal gadgets. This partnership was formed to introduce a new credit card on the market. Goldman Sachs’ technology and Apple’s payment platform will power this new credit card.
- Mastercard offers a range of payment transaction processing and other related-payment services and is the world’s second-largest payment-processing corporation. This company partnered with Synctera in January 2023. Synctera is a banking as a service (BaaS) platform which also offers a fintech banking platform. Mastercard can use this alliance to offer its services to Synctera’s customers.
- The European Commission proposed a new set of regulations in April 2023. These regulations will be implemented on fintech lending companies. They are instilled to ensure consumer’s financial safety and guarantee a stable financial system
- The United Kingdom government released a regulatory sandbox for fintech lending companies in March 2023. This initiative will allow them to test services and products without being barred by regulations that affect traditional banks.
Fintech Lending Key Market Trends
- Expansion of Online and Digital Lending Platforms: Fintech lending platforms are excessively convenient and accessible. This has led to their widespread popularity around the globe. The online platforms use today’s technology, like data analytics, to make the lending process faster and efficient. People and businesses use mobile apps and websites to avail several financial services online. These include loan application and approval, coupled with fund access. Consumers are preferring the digital method due to its conveniently quick offering of financial resources, driving this trend.
- Focus on Alternative Credit Scoring: Traditional lenders are dependent on traditional credit scoring models, like FICO scores, to understand a borrower's creditworthiness and then make their decision. On the other hand, fintech lenders have developed and started using other credit scoring methods. Analyzing psychometric data, digital footprints, social media activity, and transaction history, thye curate a risk profile for every borrower. Now, even the ones with none or limited credit history can avail financial services. This inclusive offer made by fintech lenders has expanded the overall market.
Fintech Lending Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Component types team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
Based on SkyQuest’s analysis, the fintech lending global market has recently witnessed increasing growth. Its expansion has changed the landscape of traditional lending. Fintech lenders aim to provide a wide range of lending services to firms and individuals. They are using technology and data-driven algorithms to access online lending.
This market has expanded so greatly due to the convenience and speed its platforms offer. Borrowing money is easier as a result of the growth of these digital lending technologies. They provide quick loan approval processes with minimal paperwork. This has led to the offering of more accessible and efficient loans compared to traditional formats. Fintech lenders have even dominated credit-challenged areas in the world. They have achieved this by using different data sources for assessing creditworthiness assessments. This is a far cry from having to rely on credit scores which was the norm in traditional banks.
The COVID-19 pandemic sped up the growth and adoption of fintech lending platforms. During the global crisis, individuals and companies preferred online financial solutions. This pandemic highlighted the resilience of digital lending platforms. Their importance in accessing emergency loans and ability to deliver financial relief to those in need has fed its growth. Fintech companies are receiving collaboration requests from traditional banks and credit unions. This is to upscale their lending capabilities in order to prevail in the digital age.
The fintech lending market has expanded its reach in recent years. They have achieved that through alliances with traditional financial institutions and other fintech lenders. However, the market is threatened by constraints to market growth. These challenges include concerns about data security and privacy and extreme regulatory scrutiny. Nevertheless, the global market will continue growing. This prediction is based on its rigorous innovation, birthing more lending products and services to meet evolving customer needs.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 714.29 Billion |
| Market size value in 2031 | USD 6315.41 Billion |
| Growth Rate | 27.4% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Fintech Lending Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Fintech Lending Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Fintech Lending Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Fintech Lending Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Fintech Lending Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Fintech Lending Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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