What is Online Lending?
Due to upsurging international trades as well as growing digital infrastructure significant demand will be generated for Online Lending Platforms which is also known as social lending and P2P lending. It provides a direct lending between individuals or organizations through online platforms. Those individuals include legal persons, natural persons, or other small & large Enterprises. Since the global online lending platform market is in introduction stage of the product life cycle, hence the rapid growth of online lending will be observed over the upcoming years. Moreover, introduction to highly advanced digital lending systems as well as availability of alternative financial channels will further upsurge the demand for online lending platforms.
Attributes | Details |
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Study Period | 2017-2027 |
Base Year | 2021 |
High Growth Market | Asia Pacific |
Unit | Value (USD Billion) |
Key Companies Profiled | LendingClub Corporation (United States), Funding Circle Limited (United Kingdom), CommonBond Inc. (United States), Upstart Network Inc. (United States), Social Finance Inc. (United States), Zopa (United Kingdom), Daric Inc. (United States), Pave Inc. (United States), Mintos Marketplace AS, Lendix, SA (France) and RateSetter (United Kingdom) |
CAGR | % |
The market study is broken down and major geographies with country level break-up. and may see market size of USD897.85 Billion by 2027.
Although a few early attempts by the banks to enter the online lending market was notorious failure. However, multiple banks have either backed up fintech entrepreneurs or startup businesses by forming strategic alliances for further business growth, or launching their own entries in the space. Banks see the power technology brings to the table, such as Prosper’s alternative means of determining loan risk. Lending Club, a similar service, has seen banks sign up as clients for their platform, leveraging their scoring model for loan decisions. In fact, banks are now responsible for more than 25% of Lending Club’s total loans. Meanwhile, banks like Barclays are experimenting with online Lending Platforms.The Players having a strong hold in the market are LendingClub Corporation, Funding Circle Limited, CommonBond Inc., Upstart Network Inc., and Social Finance Inc.. Analysts at AMA Research estimates that Players from United States will contribute to the maximum growth of Global Online Lending market throughout the predicted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
LendingClub Corporation (United States), Funding Circle Limited (United Kingdom), CommonBond Inc. (United States), Upstart Network Inc. (United States), Social Finance Inc. (United States), Zopa (United Kingdom), Daric Inc. (United States), Pave Inc. (United States), Mintos Marketplace AS, Lendix, SA (France) and RateSetter (United Kingdom) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research coverage are Prosper Marketplace, Inc. (United States), Circleback Lending, Inc. (United States), Peerform, Inc. (United States), Fairassets Technologies Private Limited (India) and Canstar Pty. Ltd. (Australia).
Segmentation Overview
AdvanceMarketAnalytics has segmented the market of Global Online Lending market by Type, Application and Region.
On the basis of geography, the market of Online Lending has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). North America region held largest market share in the year 2021. Europe on the other hand stood as second largest market due to the presence of key companies into the region and high technological advancement. If we see Market by Business Model, the sub-segment i.e. Traditional P2P Model will boost the Online Lending market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Services, the sub-segment i.e. Consumer Credit will boost the Online Lending market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by End Users, the sub-segment i.e. Individuals will boost the Online Lending market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Deployment, the sub-segment i.e. On-Premises will boost the Online Lending market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by End Use Industries, the sub-segment i.e. Small and Medium Enterprises (SMEs) will boost the Online Lending market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
In the recent years, robust downfall has been observed in case of online lending industry in China. According to the global financial statistics, over the past decade ‘Asian nation' was the site of the largest growth in the P2P industry, with loans exceeding USD 200 billion. Thousands of P2P companies were founded in China, with more seemingly every week. The unchecked growth led to a spate of bad debt, and investors were losing money. The government set a deadline of June 2018 for P2P companies to adhere to new, stricter business standards. By June of 2018, over 300 companies had gone out of business rather than comply, dropping the debt and costing investors dearly.
Market Trend
- Growing Availability of User Friendly Online Lending Platforms
- Introduction to Automated Systems with abilities like Risk Determination and Credit Rating
Market Drivers
- Growing Applications of Online Lending In Real Estate Related Operations
- Provides Financial Stability to Small & Large Businesses as well as Individuals
- Real Time Comparison between Numerous Lenders is Possible
Opportunities
- Growing Awareness about Pros and Cons of Online Lending over Traditional Lending
- Stability in Demand from Developing Countries like India and China since last year
Restraints
- Security Concerns regarding E Commerce Applications
- Lack of Cyber Security Obligations and E Commerce Infrastructure in Under Developed Countries
Challenges
- Skilled Workforce is required to develop Most Secured & User Friendly Online Lending Platform
- Comparatively Higher Interest Rates than the Traditional Loan Systems
Key Target Audience
Online Lending Platform Providers, Online Lending Platforms Distributors, Brokers, International Traders, Banks and Financial Service Providers, Government Agencies, Financial Industry Associations and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have the better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with purpose to understand companys positioning regarding market value, volume and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders etc. and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, analyst team keeps preparing set of questionnaires and after getting appointee list; the target audience are then tapped and segregated with various mediums and channels that are feasible for making connection that includes email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey etc.