Market Insights Financial Capital Raising Digital Capital Raising

Marketplace Lending (Consumer) - Japan

Japan

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Japan is projected to reach US$90.8m in 2024.
When compared globally, it is evident that the United States leads with a transaction value of US$26,720m in 2024.
Key Market Indicators offer a comprehensive view of the social and economic landscape in Japan, shedding light on market-specific trends.
These indicators, combined with data from statistical offices, trade associations, and businesses, form the basis for the Statista market models.
In Japan, the Marketplace Lending sector for Consumer Capital Raising is experiencing a surge in online platforms offering innovative financing solutions.

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

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Analyst Opinion

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

Customer preferences: Japanese consumers have shown a growing preference for online lending platforms due to their convenience and ease of use. The younger generation, in particular, is more open to using these platforms as they are comfortable with digital technology and are looking for faster and more efficient ways to access credit. Additionally, the low interest rates offered by marketplace lenders compared to traditional banks have also attracted consumers who are looking for more affordable borrowing options.

Trends in the market: One of the key trends in the Japanese marketplace lending market is the increasing number of partnerships between marketplace lenders and traditional financial institutions. This trend has emerged as a way for traditional banks to tap into the growing demand for online lending while leveraging the expertise and technology of marketplace lenders. These partnerships also help marketplace lenders gain access to a wider customer base and establish credibility in the market. Another trend in the market is the emergence of niche lending platforms that cater to specific customer segments. For example, there are platforms that specialize in providing loans to small businesses, while others focus on offering loans for specific purposes such as education or medical expenses. This trend reflects the growing demand for targeted lending solutions and the willingness of marketplace lenders to cater to specific customer needs.

Local special circumstances: Japan's aging population and the decline in traditional bank branches have created a gap in the market for alternative lending solutions. As traditional banks become less accessible, consumers are turning to marketplace lenders for their credit needs. This has created a favorable environment for the growth of the marketplace lending market in Japan.

Underlying macroeconomic factors: The low interest rate environment in Japan has played a significant role in the development of the marketplace lending market. With interest rates at historic lows, consumers are seeking alternative ways to earn higher returns on their investments. Marketplace lending provides an attractive option for investors looking for higher yields compared to traditional savings accounts or government bonds. Furthermore, the Japanese government has been supportive of the marketplace lending industry by introducing regulations to promote its growth. The government has recognized the potential of marketplace lending to increase access to credit, especially for small businesses, and has implemented measures to ensure the stability and transparency of the industry. In conclusion, the Marketplace Lending (Consumer) market in Japan is growing rapidly due to customer preferences for convenience and affordability, as well as the emergence of partnerships between marketplace lenders and traditional financial institutions. The aging population and low interest rate environment in Japan have also created favorable conditions for the growth of the marketplace lending 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.