Market Insights Financial Capital Raising Digital Capital Raising

Marketplace Lending (Consumer) - Bangladesh

Bangladesh

Total transaction value in Bangladesh's MarketMarketplace Lending (Consumer) market market is forecasted to reach US$7.0m in 2024.
In a global comparison, the United States leads with a transaction value of US$26,720m in 2024.
Key Market Indicators offer a snapshot of the social and economic landscape of the country and offer valuable insights into market-specific trends.
These indicators, along with data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
Bangladesh's Marketplace Lending sector is experiencing a surge in Consumer Capital Raising platforms, providing alternative financing options to traditional banking.

Key regions: Singapore, United States, Israel, United Kingdom, Australia

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Analyst Opinion

The Marketplace Lending (Consumer) market in Bangladesh has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the growth of the Marketplace Lending (Consumer) market in Bangladesh is the changing preferences of customers. Traditional banking services in the country have often been associated with long waiting times, complex procedures, and limited access to credit for individuals and small businesses. As a result, many customers are turning to marketplace lending platforms, which offer a more convenient and streamlined borrowing process. These platforms provide borrowers with easy access to credit, quick approval times, and flexible repayment options. Additionally, marketplace lending platforms often leverage technology to offer lower interest rates compared to traditional banks, making them an attractive option for borrowers.

Trends in the market: The Marketplace Lending (Consumer) market in Bangladesh has witnessed several key trends. Firstly, there has been a rise in the number of marketplace lending platforms in the country. These platforms have been successful in attracting both local and international investors, who see the potential for high returns in the growing Bangladeshi market. Secondly, there has been an increase in the variety of loan products offered by marketplace lenders. Initially, marketplace lending platforms focused primarily on personal loans. However, they have now expanded their offerings to include other types of consumer loans, such as education loans, healthcare financing, and small business loans. This diversification of loan products has allowed marketplace lenders to cater to a wider range of customer needs and preferences.

Local special circumstances: Bangladesh has a large population with a significant portion of the population being unbanked or underbanked. This means that a large number of individuals and small businesses do not have access to traditional banking services. Marketplace lending platforms have filled this gap by providing an alternative source of credit for these underserved segments of the population. Additionally, the rapid growth of the e-commerce sector in Bangladesh has created a demand for financing options for online sellers and buyers. Marketplace lending platforms have been quick to respond to this demand by offering specialized loan products tailored to the needs of e-commerce businesses.

Underlying macroeconomic factors: The growth of the Marketplace Lending (Consumer) market in Bangladesh is also influenced by underlying macroeconomic factors. The country has been experiencing steady economic growth, which has resulted in an expanding middle class with increasing purchasing power. This has created a larger pool of potential borrowers who are seeking credit for various purposes, such as education, healthcare, and consumer goods. Additionally, the government of Bangladesh has been taking steps to promote financial inclusion and digitalization, which has further facilitated the growth of the marketplace lending industry. These factors, combined with the increasing penetration of smartphones and internet connectivity, have created a favorable environment for the development of the marketplace lending sector in Bangladesh.

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.