How Has The Consumer Credit Market Size Evolved In Recent Years?
The consumer credit market has seen considerable growth due to a variety of factors.
• In the past few years, the consumer credit market has seen significant growth. It is projected to expand from $11.74 billion in 2024 to $12.48 billion in 2025 with a compound annual growth rate (CAGR) of 6.3%.
Factors contributing to the growth during the historic period include increased economic growth and prosperity, better access to financial services, shifts in lifestyles and consumer trends, changes in the housing market, and various promotional and marketing strategies.
What Is The Expected Growth In The Consumer Credit Market Size?
The consumer credit market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the consumer credit market is anticipated to demonstrate a significant increase in the forthcoming years. The market is projected to amplify to $15.99 billion by 2029, with a compound annual growth rate (CAGR) of 6.4%.
This growth during the projected period can be correlated to shifts in demographics and millennials' trends, expenses associated with education and healthcare, innovative credit product development, worldwide economic shifts, and regulatory frameworks. Prominent trends during the forecast period comprise of initiatives towards open banking, fintech-related disruptions, financial wellness, and credit education, impacts of the pandemic, and sustainable finance.
What Are The Leading Drivers Of Growth In The Consumer Credit Market?
The projected expansion of the consumer credit market is fueled by the growing acceptance of cashless transactions. Cashless transactions represent digital forms of financial exchanges between two entities, eliminating the need for physical currency by utilizing a payment gateway for electronic payments. Fintech lenders tend to favor loan issuance to those who utilize these cashless payment methods, given that a borrower's cashless payment history presents dependable data, facilitating effective loan application scrutiny. Plus, these borrowers could gain from reduced interest rates, lessened default threats, and such benefits might motivate more to shift towards cashless payments. For instance, the Bangko Sentral ng Pilipinas, a central bank based in the Philippines, reported a climb in digital payment transactions in July 2024, showing an increase from 42.1% in 2022 to 52.8% in 2023 compared to total monthly retail payments. Hence, the continued embracement of cashless transactions is steering the growth trajectory of the consumer credit market.
What Are The Primary Segments In The Global Consumer Credit Market?
The consumer credit market covered in this report is segmented –
1) By Service Type: Credit Services, Software And IT Support Services
2) By Credit Type: Revolving Credits, Non-Revolving Credits
3) By Issuer: Banks And Finance Companies, Credit Unions, Other Issuers
4) By Payment Method: Direct Deposit, Debit Card, Other Payment Methods
5) By Application: Individual, Enterprise, Other Applications
Subsegments:
1) By Credit Services: Credit Counseling, Credit Repair Services, Debt Management Services, Credit Monitoring Services
2) By Software And IT Support Services: Credit Management Software, Loan Origination Software, IT Support For Credit Services, Fraud Detection And Prevention Software
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Which Key Trends Are Driving Changes In The Consumer Credit Market?
Innovative product development is a significant trend in the consumer credit market, helping companies gain traction. Major players in the field are initiating cutting-edge solutions such as Artificial Intelligence (AI) and data analytics to consolidate their marketplace stand. As an example, LoanDepot Inc., in November 2022, unveiled an avant-garde digital home equity line of credit (HELOC). The product comes with a user-friendly interface and promises speed, completing the process in as little as seven days from application to closing. Clients can receive a stress-free online rate quote in less than five minutes and pre-qualify without any impact on their credit score. It is a distinct technology platform enhanced by digital instruments and data. This fresh, innovative structure offers homeowners a practical means to combat inflation and escalating consumer debt, providing a level of digital convenience not typically available in traditional HELOC products.
Who Are the Key Players in the Consumer Credit Market?
Major companies operating in the consumer credit market include:
• Industrial and Commercial Bank of China Limited
• JPMorgan Chase & Co.
• China Construction Bank Corporation
• The Bank of America Corporation
• WELLS FARGO & CO.
• HSBC Holdings plc
• Citigroup Inc.
• American Express Company
• Mitsubishi UFJ Financial Group Inc.
• BNP Paribas SA
• Capital One Financial Corporation
• Barclays plc
• Deutsche Bank AG
• PayPal Holdings Inc.
• Synchrony Financial
• Discover Financial Services
• Navient Corporation
• Hilltop Holdings Inc.
• Affirm Holdings Inc.
• Afterpay Touch Group Ltd.
• Zip Co. Limited
• Sezzle Inc.
• Klarna Bank AB
What Is The Most Dominant Region In The Consumer Credit Market?
North America was the largest region in the consumer credit market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global consumer credit market report during the forecast period. The regions covered in the consumer credit market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
