Connect with us

Business

“Global alternative lending market to grow by 17% to $662.3 billion in 2023”- Report

Published

on

Alternative Lending

The global alternative lending market is expected to grow by 17.0% on an annual basis to reach $662.3 billion in 2023.

This was according to Research and Markets (RM) Global Alternative Lending Business Report 2023 seen by ThePressNG.

According to the report medium to long-term growth story of global alternative lending remains strong.

Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 10.1% during 2023-2027.

The global alternative lending market will increase from $566.0 million in 2022 to reach $971.6 million by 2027.

This report serves as a valuable resource for understanding the intricate relationships between payment instruments and lending models, offering a comprehensive breakdown of transaction dynamics.

It sheds light on the diverse nature of loans, ranging from personalized B2C offerings like payroll advances to strategic B2B solutions like lines of credit.

Additionally, it delves into consumer attitudes and behaviours, providing insights into how factors such as age, income, and gender influence financial decision-making.

The report provides an extensive exploration of the alternative lending market’s vast landscape, encompassing aspects like overall market size and forecasts.

It also offers in-depth analyses of end-user segments, diverse financial models, and the intricacies of payment instruments.

The global alternative lending industry is experiencing robust growth in 2023, driven by elevated inflation levels and the prevailing interest rate environment.

This trend is not limited to a specific region; it is evident in Asia Pacific, Europe, North America, Latin America, and the Middle East, where the demand for credit is on the rise among both consumers and businesses.

According to the report, looking ahead, mergers and acquisitions are expected to play a significant role in the global alternative lending sector as more players seek to enter the industry and expand their presence globally.

Strategic collaborations among fintech firms are likely to lead to the introduction of new products in the market, thereby fostering competition and innovation. Overall, the alternative lending market is poised for accelerated growth over the next five years.

The report noted that Africa-based alternative lending providers are raising funding rounds to launch new products and accelerate growth.

In Africa, small and medium-sized enterprises find it difficult to access credit through traditional channels.

As a result, alternative lending providers are in high demand among SMEs when it comes to access to credit. To serve the growing demand, firms are raising venture capital and private equity funding in Africa.

 

Trending