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Marketplace Lending (Consumer) - North America

North America

The total transaction value in the MarketMarketplace Lending (Consumer) market market is expected to reach US$26.8bn in 2024 in North AmeriWhen compared globally, the United States is projected to have the highest transaction value at US$26,720m in 2024.
The Key Market Indicators offer a glimpse into the social and economic landscape of North America, 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.
In the United States, Marketplace Lending for consumer capital raising is witnessing a surge in demand due to favorable regulatory environment and increased investor confidence.

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

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Analyst Opinion

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

Customer preferences: Customers in North America are increasingly turning to marketplace lending platforms for their borrowing needs. This is due to several factors, including the convenience and speed of the online application process, as well as the ability to access loans without the need for traditional bank relationships. Additionally, marketplace lending platforms often offer competitive interest rates and flexible repayment terms, making them an attractive option for borrowers.

Trends in the market: One major trend in the North American marketplace lending market is the increasing popularity of peer-to-peer (P2P) lending platforms. These platforms connect individual lenders with borrowers, allowing for more personalized lending experiences. P2P lending has gained traction in North America due to its ability to offer competitive interest rates and streamlined borrowing processes. Another trend in the marketplace lending market is the rise of alternative credit scoring models. Traditional credit scoring models rely heavily on credit history and FICO scores, which can exclude many individuals who have thin credit files or no credit history. Marketplace lending platforms are utilizing alternative credit scoring models that take into account a wider range of factors, such as employment history and education level, to assess creditworthiness. This allows for a more inclusive lending environment and provides opportunities for individuals who may have been overlooked by traditional lenders.

Local special circumstances: The North American marketplace lending market is characterized by a highly competitive landscape. There are numerous marketplace lending platforms operating in the region, each vying for borrowers and investors. This competition has led to innovations in loan products and services, as well as a focus on customer experience. Marketplace lenders in North America are continuously improving their platforms and offerings to attract and retain customers in this crowded market.

Underlying macroeconomic factors: The development of the marketplace lending market in North America is also influenced by underlying macroeconomic factors. For example, the low interest rate environment in the region has made borrowing more affordable, encouraging individuals to seek out loans for various purposes. Additionally, the increasing digitization of financial services has made it easier for marketplace lending platforms to reach a wider audience and offer their services online. In conclusion, the Marketplace Lending (Consumer) market in North America is growing and evolving due to customer preferences for convenience and competitive interest rates. The rise of P2P lending platforms and alternative credit scoring models are key trends in the market. The highly competitive landscape and low interest rate environment in the region are also driving the development 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.