Consumer Credit Global Market Report 2024

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.

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 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 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.