Lending refers to the process of providing financial resources, typically in the form of money, from one party (the lender) to another (the borrower) with the expectation that the borrower will repay the loan, usually with interest, over an agreed period of time.
The lending market consists of revenues earned by entities (organizations, sole traders and partnerships) engaged in providing lending services such as secured or unsecured loans to borrowing entities.
The global lending market was valued at $7,510.28 billion in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 6.0%.
Increasing Digitalization
Increasing digitalization propelled the growth of the lending market in the historic period. Digitalization refers to the use of digital technologies that helps to change the business model and provide new revenue and value. Financial institutions embraced digital platforms to streamline loan processing, enhance customer experiences and reduce operational costs. Digital lending solutions, such as automated underwriting and AI-powered credit scoring, enabled lenders to serve a broader customer base with greater efficiency. This shift also allowed consumers to access loans more conveniently, driving demand. For example, in May 2022, the Indian government declared its intention to roll out 75 user-friendly digital banking units across the nation. The total number of digital transactions, in terms of volume, has surged from 1620 million in the Financial Year (FY) 2012-13 to over 164,430 million in FY 2023-24, representing an increase of more than 129 times. Therefore, increasing digitalization drove the growth of lending market.
Adopting Alternative Credit Data Enhancing Inclusivity And Risk Management In Lending
Companies operating in the lending market are focusing on alternative credit data to gain a competitive advantage. This approach leverages non-traditional data sources, such as utility payments and rental history, to assess creditworthiness, enabling lenders to better assess creditworthiness and expand their customer base. This enhances risk assessment accuracy and offers more inclusive lending opportunities. For instance, in 2024, Nova Credit, a US-based financial technology company, launched its alternative credit data platform for lenders. This platform leverages non-traditional data sources, such as international credit histories, rental payments and utility bills, to help lenders assess the creditworthiness of individuals with limited or no traditional credit data. This platform is designed to transform how lenders manage and analyze consumer credit data. This platform aims to streamline the onboarding, verification and underwriting processes by integrating alternative credit data from multiple sources, all while adhering to compliance standards set by consumer reporting agencies. The platform supports cross-border lending, enhancing financial accessibility for immigrants.
The global lending market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 11.53% of the total market in 2023.
Lending Global Market Opportunities And Strategies To 2033 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global lending market as it emerges from the COVID-19 shut down.
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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 history and forecasts market growth by geography. It places the market within the context of the wider lending market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by type, by interest rate and by lending channel.
- Product Analysis The product analysis section of the report describes the leading products in the lending market, along with key features and differentiators for those products.
- Supply Chain The supply chain section of the report defines and explains the key players in the lending industry supply chain.
- Customer Information The chapter covers recent customer trends/preferences in the global lending market.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Macro-Economic Scenario- The report provides an analysis of the impact of the COVID-19 pandemic, impact of the Russia-Ukraine war and impact of rising inflation on global and regional markets, providing strategic insights for businesses in the lending market.
- Global Market Size And Growth- Global historic (2018-2023) and forecast (2023-2028, 2033F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis- Historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2018-2023) (2023-2028, 2033F) and analysis for each segment by type, by interest rate and by lending channel in the market. Historic (2018-2023) and forecast (2023-2028) and (2028-2033) market values and growth and market share comparison by region market.
- Regional Market Size and Growth- Regional market size (2023), historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market is covered in the report. This section gives key financial details of mergers and acquisitions which have shaped the market in recent years.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for lending providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Type: Corporate Lending; Household Lending; Government Lending
- 2) By Interest Rate: Fixed Rate; Floating Rate
- 3) By Lending Channel: Offline; Online
- Companies Mentioned: Industrial and Commercial Bank Of China Ltd. (IDCBY); Agricultural Bank of China; JPMorgan Chase & Co. (JPM); Citi Group Inc.; Bank of America (BoA) Corp.
- Countries: China; Australia; India; Indonesia; Japan; South Korea; Bangladesh; Thailand; Vietnam, Malaysia; Singapore; Philippines; Hong Kong; New Zealand; USA; Canada; Brazil; Mexico; France; Germany; UK; Austria; Belgium; Denmark; Finland; Ireland; Italy; Netherlands; Norway; Portugal; Spain; Sweden; Switzerland; Russia; Czech Republic; Poland; Romania; Ukraine; Chile; Argentina; Colombia; Peru; Saudi Arabia; Israel; Iran; Turkey; UAE; Egypt; Nigeria; South Africa
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; lending indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.