Market Insights Financial Capital Raising Digital Capital Raising

Marketplace Lending (Consumer) - Nigeria

Nigeria

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Nigeria is projected to reach US$95.3m in 2024.
When compared globally, it is evident that the highest transaction value is expected to be reached the United States (US$26,720m in 2024).
Key Market Indicators offer a glimpse into the social and economic landscape of Nigeria, providing valuable insights into market-specific trends.
These indicators, combined with data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
Nigeria's Marketplace Lending sector is experiencing a surge in consumer capital raising through innovative digital platforms, revolutionizing access to funding.

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

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Analyst Opinion

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

Customer preferences: In recent years, Nigerian consumers have shown a growing preference for online and digital services, including marketplace lending. This shift can be attributed to the increasing penetration of smartphones and internet connectivity in the country. Consumers are increasingly seeking convenient and accessible financial solutions, and marketplace lending platforms offer a streamlined and efficient alternative to traditional banks.

Trends in the market: One of the key trends in the Nigerian marketplace lending market is the rise of peer-to-peer lending platforms. These platforms connect borrowers directly with individual lenders, eliminating the need for intermediaries such as banks. This model has gained popularity due to its ability to offer lower interest rates and faster loan processing times. Additionally, marketplace lending platforms are leveraging technology and data analytics to assess the creditworthiness of borrowers, making lending decisions more efficient and accurate.

Local special circumstances: Nigeria has a large population of unbanked and underbanked individuals, who have limited access to formal financial services. This presents a significant opportunity for marketplace lending platforms to fill the gap and provide financial inclusion to these underserved segments of the population. Furthermore, the Nigerian government has implemented policies and initiatives to promote financial inclusion and support the growth of the fintech industry, creating a favorable environment for marketplace lending platforms to thrive.

Underlying macroeconomic factors: Nigeria is experiencing rapid urbanization and a growing middle class, which is driving demand for consumer credit. Marketplace lending platforms are well-positioned to cater to this demand by offering quick and accessible loans to individuals for various purposes such as education, healthcare, and business expansion. Additionally, the Nigerian economy is diversifying, with a growing number of small and medium-sized enterprises (SMEs) emerging. These SMEs often face challenges in accessing credit from traditional banks, making marketplace lending an attractive alternative for them. In conclusion, the Marketplace Lending (Consumer) market in Nigeria is witnessing significant growth and development. Customer preferences for digital and convenient financial services, the rise of peer-to-peer lending platforms, the opportunity for financial inclusion, and underlying macroeconomic factors such as urbanization and the growth of SMEs are driving this growth. As technology continues to advance and the Nigerian market evolves, marketplace lending is expected to play an increasingly important role in the country's financial landscape.

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.