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Marketplace Lending (Consumer) - Singapore

Singapore

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Singapore is projected to reach US$0.0 in 2024.
When comparing globally, it is evident that the highest transaction value is achieved the United States (US$26,720m in 2024).
Key Market Indicators offer a snapshot of the social and economic landscape of the chosen region, offering further insights into pertinent market-specific advancements.
These indicators, in conjunction with information from statistical bureaus, trade organizations, and enterprises, form the basis for the Statista market forecasts.
Singapore's marketplace lending sector is flourishing, attracting a growing number of investors seeking alternative consumer capital-raising opportunities in the financial market.

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

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Analyst Opinion

Marketplace lending (consumer) in Singapore has experienced significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Singaporean consumers are increasingly turning to marketplace lending platforms for their borrowing needs. This is due to the convenience and efficiency offered by these platforms, as well as the ability to access credit quickly and easily. Additionally, marketplace lending platforms often provide more flexible loan terms and lower interest rates compared to traditional financial institutions. This appeals to borrowers who are looking for alternative financing options and are willing to explore new avenues for credit.

Trends in the market: One of the key trends in the marketplace lending (consumer) market in Singapore is the rise of peer-to-peer (P2P) lending platforms. These platforms connect borrowers directly with individual lenders, bypassing the need for traditional financial intermediaries. P2P lending has gained popularity in Singapore due to its ability to offer competitive interest rates and faster loan approval processes. This trend is likely to continue as more consumers become aware of the benefits of P2P lending and as the regulatory environment becomes more favorable for these platforms. Another trend in the marketplace lending (consumer) market in Singapore is the increasing adoption of technology and data analytics. Marketplace lending platforms are leveraging technology to streamline the loan application and approval process, as well as to assess borrowers' creditworthiness. By using advanced algorithms and data analytics, these platforms are able to make more accurate lending decisions and offer personalized loan products to borrowers. This trend is driven by the growing availability of data and the increasing sophistication of technology in the financial industry.

Local special circumstances: Singapore's marketplace lending (consumer) market is also influenced by local special circumstances. The city-state has a highly developed financial sector and a strong regulatory framework, which provides a conducive environment for marketplace lending platforms to operate. The Monetary Authority of Singapore (MAS) has implemented regulations to ensure the stability and integrity of the marketplace lending industry, while also promoting innovation and competition. These regulations help to build trust and confidence among borrowers and lenders, and contribute to the growth of the marketplace lending (consumer) market in Singapore.

Underlying macroeconomic factors: The growth of the marketplace lending (consumer) market in Singapore is also supported by underlying macroeconomic factors. Singapore has a strong economy and a high level of financial literacy among its population. This creates a favorable environment for marketplace lending platforms to attract borrowers and lenders. Additionally, the low interest rate environment in Singapore has made borrowing more affordable, encouraging consumers to seek out alternative financing options. These macroeconomic factors are likely to continue driving the growth of the marketplace lending (consumer) market in Singapore in the coming years.

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.