Research Support Specialist, USA
The global alternative lending market size is estimated to reach USD 807.8 billion by 2028 according to a new report by Million Insights. The market is expected to expand at a CAGR of 5.3% from 2021 to 2028. The minimum interest rate is the key factor that drives the growth of the market. In addition, the upsurge of innovative operating models is also acting as the driver for the market. The development of small and medium-sized enterprises, particularly in emerging countries, is another factor fueling the growth of the market.
However, lack of borrower protection is the major restraint for the market. Most of the key players operating are adopting different strategies such as mergers and acquisitions to capture maximum market share globally. In addition, almost all players working in the market are actively looking to diversify sources of financing. The COVID-19 pandemic has positively impacted the market. The business has witnessed steady growth due to the COVID-19 pandemic as most of the sectors suffered huge revenue losses and their request for loans increased largely to recover from these losses.
Moreover, the consumer request for personal loans and educational loans also increased due to the impact of the COVID-19 pandemic. Thus, the COVID-19 pandemic has played an important role in pushing the development of the market. The crowdlending (business) segment contributed to the global market revenue share of more than 65% in 2020. Crowdlending provides private individuals, SMEs, and self-employed people an interesting alternative to a traditional bank loan, allowing them to get finance in a straightforward way and in reasonable conditions.
Most of the borrowers are seeking such type of lending platform to get instant loans for their requirements. Thus, the demand for crowdlending (business) is high and contributes more to the market revenue. Asia Pacific accounted for the largest market share of over 80% in 2020. In 2020, China was the major country for the market globally. An increase in digitization initiatives among financial institutions and a surge in government initiatives for alternative lending in developing countries, such as India and China are the important factor for large revenue generation. In addition to that, a large number of small and medium enterprises are working in Asia Pacific have given rise to market.
The report “Alternative Lending Market Size, Share & Trends Analysis Report By Type (Crowdlending, Marketplace Lending), By Region (North America, Europe, APAC, CSA, Middle East & Africa), And Segment Forecasts, 2021 - 2028” is available now to Million Insights.
Million Insights has segmented the global alternative lending market on the basis of type and region:
List of Key Players of Alternative Lending Market