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Marketplace Lending (Consumer) - Saudi Arabia

Saudi Arabia

The country in Saudi Arabia is projected to reach a total transaction value of US$0.0 in the MarketMarketplace Lending (Consumer) market market by 2024.
When compared globally, 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 Saudi Arabia and offer valuable insights into specific market trends.
These indicators, combined with data from statistical agencies, trade groups, and businesses, form the basis of the Statista market forecasts.
Saudi Arabia's Marketplace Lending sector sees a surge in digital platforms catering to consumer capital raising, transforming the country's financial landscape.

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

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Analyst Opinion

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

Customer preferences: In recent years, there has been a shift in customer preferences towards online lending platforms in Saudi Arabia. This can be attributed to the convenience and accessibility offered by these platforms, allowing borrowers to easily apply for loans and receive funds without the need for traditional banking processes. Additionally, the younger population in Saudi Arabia, who are more tech-savvy and comfortable with digital transactions, are increasingly turning to online lending platforms for their borrowing needs.

Trends in the market: One of the key trends in the Marketplace Lending (Consumer) market in Saudi Arabia is the emergence of peer-to-peer lending platforms. These platforms connect borrowers directly with individual lenders, cutting out the intermediaries such as banks. This has led to increased competition and lower interest rates for borrowers. Furthermore, the use of technology and data analytics in the lending process has enabled lenders to assess the creditworthiness of borrowers more accurately, resulting in faster loan approvals and disbursements. Another trend in the market is the diversification of loan products offered by online lending platforms. Initially, these platforms primarily focused on personal loans, but they have now expanded their product offerings to include other types of consumer loans such as auto loans and small business loans. This has allowed borrowers to access a wider range of financing options, catering to their specific needs.

Local special circumstances: Saudi Arabia has a large population of expatriates who often face challenges in accessing traditional banking services. Online lending platforms have provided these individuals with an alternative source of financing, as they are often excluded from the traditional banking system due to lack of credit history or residency requirements. This has created a niche market for online lending platforms to cater to the needs of expatriate borrowers.

Underlying macroeconomic factors: The development of the Marketplace Lending (Consumer) market in Saudi Arabia can also be attributed to favorable macroeconomic factors. The government's Vision 2030 initiative, which aims to diversify the economy and reduce dependence on oil, has led to increased focus on entrepreneurship and small business development. This has created a demand for financing options for individuals and small businesses, which online lending platforms have been able to fulfill. Additionally, the high internet penetration rate in Saudi Arabia and the increasing adoption of smartphones have created an environment conducive to the growth of online lending platforms. The ease of accessing these platforms through mobile applications has made it convenient for individuals to apply for loans and manage their finances on the go. In conclusion, the Marketplace Lending (Consumer) market in Saudi Arabia is experiencing growth and development due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. The convenience and accessibility offered by online lending platforms, coupled with the government's focus on diversifying the economy, have created a favorable environment for the growth of this 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.