Alternative Lending Market Grows Rapidly at 5.3% CAGR, Driven by Minimum Interest Rate and Rise of Innovative Operating Models to 2028 | million ideas

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According to a new report available with Million Insights, the global alternative lending industry will witness increased growth due to the development of small and medium enterprises, especially in emerging countries during the forecast period.

The Global alternative credit market its size is expected to reach $807.8 billion by 2028 according to a new report from Million Insights. The market is expected to grow at a CAGR of 5.3% from 2021 to 2028. The minimum interest rate is the key factor driving the growth of the market. Additionally, the rise of innovative business models is also acting as a market driver. The development of small and medium enterprises, especially in emerging countries, is another factor fueling the growth of the market.

However, the lack of borrower protection is the main constraint for the market. Most of the key players operating are adopting different strategies such as mergers and acquisitions to grab maximum market share globally. In addition, almost all players in the market are actively seeking to diversify sources of financing. The COVID-19 pandemic has had a positive impact on the market. The business has seen steady growth due to the COVID-19 pandemic as most sectors have suffered huge revenue losses and their loan applications have largely increased to recover from these losses.

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US alternative lending market size, by type, 2018-2028 (USD billion)

Additionally, consumer demand for personal loans and student loans has 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’s revenue share of more than 65% in 2020. Crowdlending offers individuals, SMEs and the self-employed an attractive alternative to a traditional bank loan, allowing them to obtain simple financing. manner and under reasonable conditions.

Most borrowers look for this type of lending platform to get instant loans for their needs. Thus, the demand for crowdlending (business) is high and contributes more to market revenue. Asia-Pacific accounted for the largest market share of over 80% in 2020. In 2020, China was the leading country in the global market. An increase in digitization initiatives among financial institutions and an increase in government initiatives for alternative lending in developing countries, such as India and China, are the important factor for generating significant revenue. In addition to this, a large number of small and medium enterprises working in Asia-Pacific have given rise to a market.

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Global alternative lending market share, by type, 2020 (%)

Alternative Lending Market Report Highlights

• In North America, the market is expected to show the highest CAGR of 5.7% from 2021 to 2028. Alternative lenders mainly focus on SMEs and student loans are the important sources of external financing for small businesses. businesses and are essential to help them continue cash flow, purchase new inventory or equipment and increase their business

• In Asia-Pacific, the market is expected to account for the largest share of revenue in 2020 due to digitalization and government support initiatives to promote alternative lending in the region

• Market Lending (Consumer) segment is likely to register the highest CAGR of 5.5% from 2021 to 2028. Market Lending is a developing and rapidly changing sector, which includes new organizations and technologies , individual borrowers and savers and institutional investors.

Alternative Lending Market Segmentation

Million Insights has segmented the global alternative lending market based on type and region:

  • Alternative Lending Types Outlook (Revenue, USD Billion, 2017-2028)
    • Participatory loan (Company)
    • Loans in the market (consumption)
  • Alternative Lending Regional Outlook (Revenue, USD Billion, 2017 – 2028)
    • North America
      • we
      • Canada
      • Europe
      • Asia Pacific
      • Central and South America
      • Middle East and Africa
        • Saudi Arabia
        • South Africa

List of Key Alternative Lending Market Players

  • LendingClub Corporation
  • Thrive Marketplace, Inc.
  • Funding Circle Holdings PLC
  • Over the Bridge Capital, Inc.
  • OurCrowd Management Limited
  • Social Finance, Inc.
  • GoFundMe, Inc.
  • LendingTree LLC
  • CreditEase Corporation
  • Kickstarter, PBC

Browse other related market snapshots available on Million Insights:

Enterprise Application Market – The global business applications market size was valued at USD 2.53 billion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 14.5% from 2021 to 2028.

Robo-advisors market – The global robo-advisor market size was valued at USD 1,400.30 billion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 18.6% from 2021 to 2028.

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