Market Insights Financial Capital Raising Digital Capital Raising

Marketplace Lending (Consumer) - Lebanon

Lebanon

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Lebanon is forecasted to reach US$0.0 in 2024.
When compared globally, the United States leads with a transaction value of US$26,720m in 2024.
Key Market Indicators offer a glimpse into the social and economic landscape of the country, shedding light on market-specific trends.
These indicators, along with data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
In Lebanon, Marketplace Lending in Consumer Capital Raising is gaining momentum due to a growing demand for alternative financing options.

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

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Analyst Opinion

The Marketplace Lending (Consumer) market in Lebanon is experiencing significant growth and development.

Customer preferences: Lebanese consumers are increasingly turning to marketplace lending platforms to meet their borrowing needs. This trend can be attributed to several factors. Firstly, marketplace lending offers convenience and accessibility, allowing borrowers to apply for loans online and receive funds quickly. This appeals to Lebanese consumers who are looking for a hassle-free borrowing experience. Additionally, marketplace lending platforms often provide competitive interest rates and flexible repayment terms, making them an attractive alternative to traditional banks. This is particularly appealing to borrowers who may not have access to traditional banking services or who have been turned down by banks due to stricter lending criteria.

Trends in the market: One of the key trends in the marketplace lending market in Lebanon is the increasing number of platforms catering to specific niches. These platforms focus on lending to specific industries or sectors, such as small businesses, healthcare, or education. This trend reflects the growing demand for specialized lending services in Lebanon, as borrowers seek tailored solutions to their financing needs. Additionally, marketplace lending platforms are increasingly partnering with traditional financial institutions to expand their reach and offer a wider range of products and services. This collaboration between fintech companies and banks is driving innovation in the marketplace lending market and helping to meet the diverse needs of Lebanese borrowers.

Local special circumstances: Lebanon's marketplace lending market is also influenced by local special circumstances. One such circumstance is the high level of informal lending in the country. Many Lebanese individuals and businesses rely on informal lenders, such as family and friends, due to limited access to formal credit. However, marketplace lending platforms are gradually gaining trust and acceptance as a viable alternative to informal lending. This is due to their transparent and regulated nature, which provides borrowers with greater security and protection. Additionally, the ongoing economic and financial challenges in Lebanon, including a high level of public debt and limited access to foreign currency, have created a need for alternative financing options. Marketplace lending platforms are filling this gap by providing accessible and flexible loans to individuals and businesses.

Underlying macroeconomic factors: Several macroeconomic factors are driving the development of the marketplace lending market in Lebanon. Firstly, the country has a relatively young and tech-savvy population, which is increasingly comfortable with digital financial services. This demographic shift is fueling the adoption of marketplace lending platforms and driving their growth. Additionally, Lebanon has a high smartphone penetration rate, which enables easy access to online lending platforms. Moreover, the ongoing economic challenges in the country, including a slowdown in traditional bank lending and a lack of investment opportunities, are driving borrowers towards marketplace lending platforms. These factors, combined with the innovative and customer-centric nature of marketplace lending, are contributing to the growth and development of the market in Lebanon.

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.