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Marketplace Lending (Consumer) - Sri Lanka

Sri Lanka

The total transaction value in the MarketMarketplace Lending (Consumer) market market in Sri Lanka is forecasted to reach US$2.0m in 2024.
When comparing globally, the United States is expected to achieve the highest transaction value in 2024, reaching US$26,720m.
Key Market Indicators offer a glimpse into the social and economic landscape of Sri Lanka, shedding light on market-specific trends and developments.
These indicators, supported by data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
Sri Lanka's Marketplace Lending sector is witnessing a surge in consumer capital raising through innovative online platforms, reshaping 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 Sri Lanka has been experiencing significant growth in recent years.

Customer preferences: Sri Lankan consumers are increasingly turning to marketplace lending platforms for their borrowing needs. This can be attributed to several factors. Firstly, marketplace lending offers a convenient and efficient way for individuals to access credit. The online application process is quick and streamlined, allowing borrowers to receive funds in a timely manner. Additionally, marketplace lending platforms often offer more flexible terms and lower interest rates compared to traditional banks, making them an attractive option for borrowers.

Trends in the market: One of the key trends in the marketplace lending market in Sri Lanka is the rise of peer-to-peer lending platforms. These platforms connect individual lenders with borrowers, cutting out the middleman and reducing costs for both parties. This trend is driven by the increasing popularity of online platforms and the growing trust in digital financial services. Peer-to-peer lending platforms also provide an opportunity for individuals to earn passive income by lending out their excess funds. Another trend in the marketplace lending market in Sri Lanka is the focus on financial inclusion. Many marketplace lending platforms are targeting underserved populations who have limited access to traditional banking services. By leveraging technology and alternative credit scoring methods, these platforms are able to extend credit to individuals who would otherwise be excluded from the formal financial system. This trend is aligned with the government's efforts to promote financial inclusion and reduce poverty in the country.

Local special circumstances: Sri Lanka has a large unbanked population, with a significant portion of the population lacking access to basic financial services. This presents a unique opportunity for marketplace lending platforms to fill the gap and provide much-needed credit to underserved individuals. The government has recognized the importance of financial inclusion and has implemented policies to support the growth of the marketplace lending industry.

Underlying macroeconomic factors: The growth of the marketplace lending market in Sri Lanka can also be attributed to favorable macroeconomic factors. The country has experienced steady economic growth in recent years, which has led to an increase in disposable income and consumer spending. This has created a demand for credit, which marketplace lending platforms are able to fulfill. Additionally, the low interest rate environment in the country has made borrowing more affordable, further driving the demand for marketplace lending. In conclusion, the Marketplace Lending (Consumer) market in Sri Lanka is growing rapidly due to customer preferences for convenience and competitive terms, the rise of peer-to-peer lending platforms, the focus on financial inclusion, and favorable macroeconomic factors. As the market continues to develop, it is expected to play a crucial role in expanding access to credit and promoting financial inclusion in the country.

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.