PUBLISHER: The Business Research Company | PRODUCT CODE: 1429533
PUBLISHER: The Business Research Company | PRODUCT CODE: 1429533
Lending is the provision of a sum of money to a person or organization with the understanding that it will be repaid later, usually with interest.
The primary types of lending are corporate lending, household lending, and government lending. Corporate lending involves loans designated for business purposes. These loans may have variable interest rates, fixed rates, or floating rates. Lending channels can be categorized as offline or online.
The lending research report is one of a series of new reports from The Business Research Company that provides lending statistics, including lending industry global market size, regional shares, competitors with lending shares, detailed lending segments, market trends and opportunities, and any further data you may need to thrive in the lending industry. This lending research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The lending market size has grown strongly in recent years. It will grow from $10505.27 billion in 2023 to $11325.13 billion in 2024 at a compound annual growth rate (CAGR) of 7.8%. The growth observed in the historical period can be attributed to several factors, including robust economic growth in emerging markets, an increase in internet penetration, a rise in consumer spending, heightened construction activity, and an increase in the number of vehicle loans.
The lending market size is expected to see strong growth in the next few years. It will grow to $15283.24 billion in 2028 at a compound annual growth rate (CAGR) of 7.8%. The anticipated growth in the forecast period can be attributed to the increasing penetration of blockchain across various sectors and the rising demand in higher education. Notable trends expected during this period include investments in technologies aimed at offering alternative lending services to boost profit margins, the adoption of digital technologies for quicker approval of commercial loans to enhance customer satisfaction, a heightened focus on participation lending to mitigate risks and increase profitability, investments in Loan as a Service (LaaS) platforms to capitalize on their growing popularity, and the implementation of artificial intelligence in operations for cost and time efficiency.
The lending market is anticipated to experience growth due to the increasing number of small businesses. Small businesses, characterized by fewer employees and lower revenue compared to larger enterprises, are essential recipients of loans for starting up, expanding, and meeting financial needs. This not only aids in new investments but also stimulates economic demand. Notably, the US Small Business Administration (SBA) reported that the number of small businesses in the US reached 33.2 million in 2022, marking a significant increase of 700,000 from the previous year, 2021. Hence, the surge in small businesses is a driving force behind the lending market.
The lending market is poised for growth with the ongoing trend of digitalization and the prevalence of online platforms. Digitalization involves the transformation of traditional business processes into a digital format, facilitated by digital technologies. Simultaneously, online platforms provide virtual spaces for user interactions, transactions, and collaborations. These trends benefit the lending industry by streamlining processes, improving accessibility, and enhancing customer experiences. In June 2023, UK Finance Limited reported a substantial increase in electronic payment transactions by debit and credit cards, showcasing the impact of digitalization and online platforms on financial transactions. Consequently, the rise in digitalization and online platforms is a significant driver for the lending market.
Leading companies in the lending market are embracing innovation through platforms such as crypto lending platforms to maintain a competitive edge. Crypto lending platforms are online spaces facilitating the borrowing and lending of cryptocurrencies. Coinbase Global Inc., for instance, introduced a crypto lending platform in September 2023, aimed at providing institutions with economic freedom and opportunities in alignment with the company's commitment to advancing the financial system using cryptocurrencies. This lending program enables institutions to lend digital assets to Coinbase under standardized terms, adhering to a Regulation D exemption.
Participation lending, also known as syndicated lending, is gaining prominence for its ability to mitigate risks associated with large capital lending. Participation lending involves multiple lenders contributing to a loan provided to a single borrower. Typically initiated by one financial institution and administered by another, participation loans offer diversified loan products and enhance business liquidity. Financial institutions engage in partnership to share funding and risk, presenting larger lending opportunities. This collaborative approach streamlines the lending process, eliminating manual tracking and optimizing efficiency. Companies such as Coastway Community Bank, Shamrock Financial Corp., and Homestar Mortgage are actively involved in participation lending.
Major companies operating in the lending market report are Industrial and Commercial Bank Of China Ltd. (IDCBY), China Construction Bank Corporation, Agricultural Bank of China, Bank of China Ltd., JPMorgan Chase & Co. (JPM), Citi Group, Bank of America (BoA), Wells Fargo & Co., HSBC Holdings PLC, BNP Paribas, Lending Kart, WeLab, Industrial and Commercial Bank of China Limited, Citibank (China) Co., Ltd. (CCCL), HSBC, Royal Bank of Scotland, Barclays, Lloyds Banking Group, Standard Chartered, Santander, Nationwide Building Society, Schroders, Close Brothers, Coventry Building Society, Deutsche Bank, Commerzbank, KFW Bankgruppe, DZ Bank, UniCredit Bank AG, NRW bank, Norddeutsche Landesbank, Credit Agricole, Danske Bank A/S, Midas Corporacion Financiera S.A, European Investment Bank, Mitsubishi UFJ Financial Group, Bank of Montreal, Royal Bank of Canada (RBC), Business Development Bank of Canada, Borrowell Inc., Clearbanc, CreditSnap Inc., Dealnet Capital, Itau Unibanco, Caixa Economica, Celulosa argentina, Ternium argentina, Banco (BCP), BBVA Continental, Scotiabank Peru, Interbank, Red Capital, Maalem Finance Company, MoneyDila, Abu Dhabi Finance, BeeHive, Tarya, Blender, eloan.co.il, CITI, Standard Bank Group, FirstRand, ABSA Group, Nedbank Group, National Bank of Egypt, Attijariwafa Bank, Groupe Banques Populaire
Western Europe was the largest region in the lending market in 2023. Asia-Pacific was the second-largest region in the lending market. The regions covered in the lending market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the lending market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa
The lending market includes revenues earned by entities by providing secured or unsecured loans to borrowing entities. Lending entities include establishments such as finance companies, personal credit institutions, loan companies and student loan companies. This market covers all types of loans including mortgage loans, personal loans, working capital loans, vehicle loans and industrial loans. Revenue generated from the lending market includes all the interest charges levied by the lending entities such as banks and financial institutions against the loans sanctioned, but not the value of the loans themselves. This market includes interest charged by the banks on credit cards and other payment cards as well as mortgages and other loans. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Lending Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on lending market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for lending? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The lending market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.