Consumer Credit Global Market Report 2024

Consumer credit involves personal debt for purchasing goods and services, often utilizing credit cards, allowing repayment over time with interest.

Consumer credit services encompass two primary categories such as credit services and software/IT support services. Credit services involve providing loans, various credit types, and credit information to both individuals and businesses. Types of credit offered include revolving and non-revolving credit issued by banks, finance companies, credit unions, and other financial institutions. These services are provided through various means such as direct deposit, debit cards, and other payment methods, catering to individuals, enterprises, and other applications.

The consumer credits market research report is one of a series of new reports from The Business Research Company that provides consumer credits market statistics, including the consumer credits industry global market size, regional shares, competitors with a consumer credits market share, detailed consumer credits market segments, market trends and opportunities, and any further data you may need to thrive in the consumer credits industry. This consumer credits market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The consumer credit market size has grown strongly in recent years. It will grow from $11.1 billion in 2023 to $11.79 billion in 2024 at a compound annual growth rate (CAGR) of 6.2%. The expansion observed in the historical period can be attributed to factors such as economic growth and prosperity, increased access to financial services, shifts in lifestyles and consumption patterns, dynamics within the housing market, and effective promotion and marketing strategies employed within the industry.

The consumer credit market size is expected to see strong growth in the next few years. It will grow to $14.96 billion in 2028 at a compound annual growth rate (CAGR) of 6.1%. Anticipated growth in the upcoming period is expected due to demographic shifts and the behavior of millennials, rising expenses in education and healthcare, innovations in credit products, global economic trends, and the regulatory environment. Key trends projected for this period encompass open banking initiatives, disruption by fintech companies, emphasis on credit education and financial wellness, trends influenced by the pandemic, and a growing focus on sustainable finance within the financial sector.

The projected growth of the consumer credit market is closely linked to the rising adoption of cashless transactions. Cashless transactions represent digital methods of financial exchange devoid of physical currency, utilizing electronic payment gateways for seamless transfers between parties. Fintech lenders are increasingly inclined to extend loans to individuals who embrace cashless payments. This preference stems from the reliable borrower data generated through their history of cashless transactions, enabling more effective screening of loan applications. Moreover, these borrowers often enjoy advantages such as potentially lower interest rates and reduced default risks, further incentivizing their choice of cashless payments. For instance, in July 2022, a report released by the European Central Bank noted a 12.5% surge in the total volume of non-cash payments in Europe, reaching $123.63 billion in 2021 compared to the preceding year. Simultaneously, the total value escalated by 18.6% to $213.26 trillion. This mounting trend of cashless transaction adoption serves as a primary driver fueling growth within the consumer credit market.

The anticipated surge in demand within the banking, financial services, and insurance (BFSI) sector is poised to fuel the expansion of the consumer credit market. BFSI encompasses institutions offering diverse financial products such as banking services, investment management, and insurance coverage. Within this sector, consumer credit plays a pivotal role, empowering individuals with access to funds for purchases, investments, and financial management. This symbiotic practice yields benefits for both consumers and financial entities by stimulating economic growth, generating interest income, and mitigating risk through rigorous credit assessment procedures. For example, as reported by Monster.com in March 2022, the BFSI industry in India observed a notable 27% growth in February 2022, attributed to the swift adoption of digital payment methods and advanced technologies such as AI, ML, and blockchain. Consequently, the robust presence of the banking, financial services, and insurance (BFSI) segment stands as a driving force behind the expansion of the consumer credit market.

Innovative product development stands as a prominent trend driving traction within the consumer credit market. Key players in this market are prioritizing the creation of pioneering solutions, leveraging technologies such as Artificial Intelligence (AI) and data analytics to fortify their market positions. A noteworthy example is LoanDepot Inc.'s introduction in November 2022 of a groundbreaking digital home equity line of credit (HELOC). This product boasts a user-friendly interface and swift processing, enabling closure within a mere seven-day timeframe from application initiation. Customers benefit from obtaining online rate quotes hassle-free in under five minutes, along with the ability to pre-qualify without impacting their credit scores. This unique technology platform harnesses digital tools and data, offering homeowners an efficient financing avenue to address inflation and escalating consumer debt, delivering an electronic convenience unparalleled by traditional HELOC products.

Leading companies within the consumer credit market are increasingly embracing a strategic partnership approach to bolster their access to insightful credit information and services. These strategic partnerships entail collaborative agreements or alliances between multiple entities, be it companies, organizations, or even governments, all aimed at achieving mutually advantageous goals. A case in point occurred in May 2023 when CreditWorks Group, a credit reporting firm based in New Zealand, forged a partnership with Equifax Inc., a prominent US-based credit bureau company. The objective behind this collaboration is to elevate their risk management strategies and enhance decision-making processes by tapping into Equifax's vast repository of comprehensive and accurate consumer credit data. Through this partnership, both entities seek to augment their capabilities in assessing risks and making informed credit-related decisions.

In June 2022, National Australia Bank Ltd. (NAB), a prominent financial institution headquartered in Australia, successfully acquired Citibank N.A. The specifics of the transaction amount were not disclosed. This acquisition primarily targeted Citigroup's consumer division, aligning with NAB's strategic objective of positioning itself as a leading personal bank while emphasizing a streamlined and digitally enhanced customer experience. Citibank N.A., an established consumer bank based in the United States, provides a diverse range of banking and financial services, amplifying NAB's reach and offerings in the consumer banking sphere.

Major companies operating in the consumer credit market report are Berkshire Hathaway Inc., 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., Prudential Financial Inc., American Express Company, Morgan Stanley, Mitsubishi UFJ Financial Group Inc., BNP Paribas SA, Capital One Financial Corporation, Barclays PLC, Deutsche Bank AG, PayPal Holdings Inc., Mastercard Incorporated, Synchrony Financial, Discover Financial Services, Experian PLC, Equifax Inc., Navient Corporation, Hilltop Holdings Inc., Affirm Holdings Inc., Afterpay Touch Group Ltd., Zip Co. Limited, Sezzle Inc., Edward D Jones & Co L.P., Klarna Bank AB

North America was the largest region in the consumer credit market in 2023. 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.

The countries covered in the consumer credit market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The consumer credit market consists of revenues earned by entities by providing money lending services for closed-end credits and open-end credits. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Consumer Credit Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on consumer credit market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for consumer credit ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The consumer credit 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 historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 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
• Companies Mentioned: Berkshire Hathaway Inc.; Industrial and Commercial Bank of China Limited; JPMorgan Chase & Co.; China Construction Bank Corporation; The Bank of America Corporation
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• 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,
• 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.
• Delivery format: PDF, Word and Excel Data Dashboard.