The microlending market size has grown rapidly in recent years. It will grow from $190.29 billion in 2023 to $214.96 billion in 2024 at a compound annual growth rate (CAGR) of 13.0%. The growth during the historical period can be credited to initiatives promoting financial inclusion, support for entrepreneurship and small businesses, programs aimed at poverty alleviation, efforts in community development, and initiatives fostering women's empowerment.
The microlending market size is expected to see rapid growth in the next few years. It will grow to $345.4 billion in 2028 at a compound annual growth rate (CAGR) of 12.6%. The expected growth in the forecast period is driven by various factors: the adoption of digital financial services, the influence of impact investing and social finance, the emergence of fintech solutions, the promotion of climate-smart lending, and government-backed support programs. Major trends anticipated during this period encompass the utilization of alternative data for credit assessment, the integration of robotic process automation (RPA) in financial services, a focus on financial inclusion and microlending in rural areas, the development of flexible repayment models and microfinance products, and the continuous development of regulatory frameworks to support these initiatives.
The escalating demand for micro-lending among various end-users, encompassing micro-enterprises and small enterprises, is set to drive the growth of the microlending market in the future. These small and medium-sized enterprises, characterized by limited personnel and revenue thresholds, benefit significantly from micro-lending, which empowers them with small-dollar loans, facilitating their business expansion. For instance, according to estimations by the World Bank and The International Finance Corporation (IFC), around 65 million firms, constituting 40% of formal micro, small, and medium enterprises (MSMEs) in developing countries, require approximately $5.2 trillion annually. This financial need amounts to 1.4 times the current global level of MSME lending. Additionally, initiatives such as the MSME Growth, Innovation, and Inclusive Finance Project in India aim to enhance finance accessibility for MSMEs, targeting a lending provision of $1.5 billion to startups by 2025. Consequently, the burgeoning demand for micro-lending among micro-enterprises and small enterprises is a pivotal driver behind the growth of the microlending market.
The surge in smartphone adoption is expected to significantly drive the growth of the microlending market in the foreseeable future. Smartphones, serving as versatile mobile communication devices merging the functionalities of a phone with those of a handheld computer, play a crucial role in expanding access to microlending services. They facilitate broader outreach to individuals in remote or underserved areas where traditional banking infrastructure may be scarce. For example, based on a report by Uswitch Limited in February 2023, there were 71.8 million active mobile connections in 2022, marking a 3.8% increase from 2021. Projections indicate that by 2025, out of the 68.3 million people in the UK, 95% will possess smartphones. Consequently, the escalating adoption of smartphones stands as a pivotal driver fueling the expansion of the microlending market.
In the microlending market, major companies are increasingly adopting a strategic partnership approach to bolster support for microbusinesses and microfinance institutions. These partnerships involve leveraging the strengths and resources of each entity to achieve mutual benefits and success. For instance, in March 2021, The Microfinance Centre (MFC), a Poland-based finance network, forged a partnership with Mastercard Inc., a US-based credit card company. This strategic alliance aims to facilitate a transformative shift for microfinance institutions, enabling them to embrace and integrate digitization into their operations. The partnership's primary objective is to empower over 90 microfinance institutions (MFIs) and bolster the economic resilience of 300,000 small businesses across Europe and Central Asia. This collaborative effort seeks to address the challenges exacerbated by the pandemic, thereby fostering growth and stability within the microfinance sector.
Key companies in the microlending market are innovating by developing products such as online platforms to reach broader customer bases, drive sales, and increase revenue. An online platform refers to a digital space accessible via the internet that facilitates the exchange of information, services, or products between users or between users and the platform itself. For instance, in June 2023, TMEDE, a microlending institution based in Greece, introduced the Microlending Platform. This platform, accessible through mobile or web applications, enables users to effortlessly apply for loans directly from their mobile devices or PCs with minimal effort. Setting itself apart with swift processing, approvals, and disbursements, TMEDE Microfinance Solutions ensures loans up to 25,000 euros are delivered within 24 hours. This unique feature caters to various financial needs, including investment requirements, working capital, or settling outstanding debts, offering unparalleled speed and convenience.
In August 2022, Umba Digital Bank, a bank based in Africa, acquired Daraja Microfinance Bank for an undisclosed sum. This acquisition marks a significant expansion of the microfinance banking industry overseen by the central bank of Kenya, serving both Kenya and the larger region. The investment from Umba is expected to fortify Daraja MFB’s portfolio. Daraja Microfinance Bank, headquartered in Kenya, operates primarily in microlending services.
Major companies operating in the microlending market report are Larsen and Toubro Ltd., ICICI Bank Ltd., Bajaj Finserv Ltd., HDB Financial Services Ltd., Bandhan Bank Ltd., LendingClub Corporation, Faulu Microfinance Bank Limited, MicroVest LLC, BlueVine Inc., Kiva Microfunds, Panamax Inc., Lendio Inc., Fusion Micro Finance Ltd., Accion International, Equitas Small Finance Bank Ltd., ESAF Small Finance Bank, Fincare Small Finance Bank Ltd., Ujjivan Small Finance Bank Ltd., Oakam Ltd., On Deck Capital Inc., Small Industries Development Bank of India, One Acre Fund, Samia African Microfinance Limited, FINCA International Impact Investments, Fonds National de Coopératives de Développement Economique et Sociale Agricole, Gray Ghost Ventures LLC, Elevar Equity LLC, Incofin Investment Management PLC, ResponsAbility Investments AG, ImpactAssets Fund.
Asia-Pacific was the largest region in the microlending market in 2023. The regions covered in the microlending market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the microlending market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Microlending services are provided by banks, microfinance institutes (MFIs), non-banking financial institutions (NBFCs), and other providers. Banks are regulated financial institutions that operate at the federal or state level. Microfinance is often used by borrowers with poor credit or those seeking smaller loans than traditional banks offer. The end-users of microlending include small enterprises, micro-enterprises, solo entrepreneurs, and the self-employed.
The microlending market research report is one of a series of new reports that provides microlending market statistics, including microlending industry global market size, regional shares, competitors with a microlending market share, detailed microlending market segments, market trends, and opportunities, and any further data you may need to thrive in the microlending industry. This microlending 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 microlending market includes revenues earned by entities by providing loans and funds through group lending and individual lending. 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.
The microlending market size is expected to see rapid growth in the next few years. It will grow to $345.4 billion in 2028 at a compound annual growth rate (CAGR) of 12.6%. The expected growth in the forecast period is driven by various factors: the adoption of digital financial services, the influence of impact investing and social finance, the emergence of fintech solutions, the promotion of climate-smart lending, and government-backed support programs. Major trends anticipated during this period encompass the utilization of alternative data for credit assessment, the integration of robotic process automation (RPA) in financial services, a focus on financial inclusion and microlending in rural areas, the development of flexible repayment models and microfinance products, and the continuous development of regulatory frameworks to support these initiatives.
The escalating demand for micro-lending among various end-users, encompassing micro-enterprises and small enterprises, is set to drive the growth of the microlending market in the future. These small and medium-sized enterprises, characterized by limited personnel and revenue thresholds, benefit significantly from micro-lending, which empowers them with small-dollar loans, facilitating their business expansion. For instance, according to estimations by the World Bank and The International Finance Corporation (IFC), around 65 million firms, constituting 40% of formal micro, small, and medium enterprises (MSMEs) in developing countries, require approximately $5.2 trillion annually. This financial need amounts to 1.4 times the current global level of MSME lending. Additionally, initiatives such as the MSME Growth, Innovation, and Inclusive Finance Project in India aim to enhance finance accessibility for MSMEs, targeting a lending provision of $1.5 billion to startups by 2025. Consequently, the burgeoning demand for micro-lending among micro-enterprises and small enterprises is a pivotal driver behind the growth of the microlending market.
The surge in smartphone adoption is expected to significantly drive the growth of the microlending market in the foreseeable future. Smartphones, serving as versatile mobile communication devices merging the functionalities of a phone with those of a handheld computer, play a crucial role in expanding access to microlending services. They facilitate broader outreach to individuals in remote or underserved areas where traditional banking infrastructure may be scarce. For example, based on a report by Uswitch Limited in February 2023, there were 71.8 million active mobile connections in 2022, marking a 3.8% increase from 2021. Projections indicate that by 2025, out of the 68.3 million people in the UK, 95% will possess smartphones. Consequently, the escalating adoption of smartphones stands as a pivotal driver fueling the expansion of the microlending market.
In the microlending market, major companies are increasingly adopting a strategic partnership approach to bolster support for microbusinesses and microfinance institutions. These partnerships involve leveraging the strengths and resources of each entity to achieve mutual benefits and success. For instance, in March 2021, The Microfinance Centre (MFC), a Poland-based finance network, forged a partnership with Mastercard Inc., a US-based credit card company. This strategic alliance aims to facilitate a transformative shift for microfinance institutions, enabling them to embrace and integrate digitization into their operations. The partnership's primary objective is to empower over 90 microfinance institutions (MFIs) and bolster the economic resilience of 300,000 small businesses across Europe and Central Asia. This collaborative effort seeks to address the challenges exacerbated by the pandemic, thereby fostering growth and stability within the microfinance sector.
Key companies in the microlending market are innovating by developing products such as online platforms to reach broader customer bases, drive sales, and increase revenue. An online platform refers to a digital space accessible via the internet that facilitates the exchange of information, services, or products between users or between users and the platform itself. For instance, in June 2023, TMEDE, a microlending institution based in Greece, introduced the Microlending Platform. This platform, accessible through mobile or web applications, enables users to effortlessly apply for loans directly from their mobile devices or PCs with minimal effort. Setting itself apart with swift processing, approvals, and disbursements, TMEDE Microfinance Solutions ensures loans up to 25,000 euros are delivered within 24 hours. This unique feature caters to various financial needs, including investment requirements, working capital, or settling outstanding debts, offering unparalleled speed and convenience.
In August 2022, Umba Digital Bank, a bank based in Africa, acquired Daraja Microfinance Bank for an undisclosed sum. This acquisition marks a significant expansion of the microfinance banking industry overseen by the central bank of Kenya, serving both Kenya and the larger region. The investment from Umba is expected to fortify Daraja MFB’s portfolio. Daraja Microfinance Bank, headquartered in Kenya, operates primarily in microlending services.
Major companies operating in the microlending market report are Larsen and Toubro Ltd., ICICI Bank Ltd., Bajaj Finserv Ltd., HDB Financial Services Ltd., Bandhan Bank Ltd., LendingClub Corporation, Faulu Microfinance Bank Limited, MicroVest LLC, BlueVine Inc., Kiva Microfunds, Panamax Inc., Lendio Inc., Fusion Micro Finance Ltd., Accion International, Equitas Small Finance Bank Ltd., ESAF Small Finance Bank, Fincare Small Finance Bank Ltd., Ujjivan Small Finance Bank Ltd., Oakam Ltd., On Deck Capital Inc., Small Industries Development Bank of India, One Acre Fund, Samia African Microfinance Limited, FINCA International Impact Investments, Fonds National de Coopératives de Développement Economique et Sociale Agricole, Gray Ghost Ventures LLC, Elevar Equity LLC, Incofin Investment Management PLC, ResponsAbility Investments AG, ImpactAssets Fund.
Asia-Pacific was the largest region in the microlending market in 2023. The regions covered in the microlending market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the microlending market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Microlending services are provided by banks, microfinance institutes (MFIs), non-banking financial institutions (NBFCs), and other providers. Banks are regulated financial institutions that operate at the federal or state level. Microfinance is often used by borrowers with poor credit or those seeking smaller loans than traditional banks offer. The end-users of microlending include small enterprises, micro-enterprises, solo entrepreneurs, and the self-employed.
The microlending market research report is one of a series of new reports that provides microlending market statistics, including microlending industry global market size, regional shares, competitors with a microlending market share, detailed microlending market segments, market trends, and opportunities, and any further data you may need to thrive in the microlending industry. This microlending 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 microlending market includes revenues earned by entities by providing loans and funds through group lending and individual lending. 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.
Table of Contents
1. Executive Summary2. Microlending Market Characteristics3. Microlending Market Trends and Strategies32. Global Microlending Market Competitive Benchmarking33. Global Microlending Market Competitive Dashboard34. Key Mergers and Acquisitions in the Microlending Market
4. Microlending Market - Macro Economic Scenario
5. Global Microlending Market Size and Growth
6. Microlending Market Segmentation
7. Microlending Market Regional and Country Analysis
8. Asia-Pacific Microlending Market
9. China Microlending Market
10. India Microlending Market
11. Japan Microlending Market
12. Australia Microlending Market
13. Indonesia Microlending Market
14. South Korea Microlending Market
15. Western Europe Microlending Market
16. UK Microlending Market
17. Germany Microlending Market
18. France Microlending Market
19. Italy Microlending Market
20. Spain Microlending Market
21. Eastern Europe Microlending Market
22. Russia Microlending Market
23. North America Microlending Market
24. USA Microlending Market
25. Canada Microlending Market
26. South America Microlending Market
27. Brazil Microlending Market
28. Middle East Microlending Market
29. Africa Microlending Market
30. Microlending Market Competitive Landscape and Company Profiles
31. Microlending Market Other Major and Innovative Companies
35. Microlending Market Future Outlook and Potential Analysis
36. Appendix
Executive Summary
Microlending Global Market Report 2024 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on microlending 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.
Reasons to Purchase
- Gain a truly global perspective with the most comprehensive report available on this market covering 50+ geographies.
- Understand how the market has been affected by the coronavirus and how it is responding as the impact of the virus abates.
- Assess the Russia-Ukraine war’s impact on agriculture, energy and mineral commodity supply and its direct and indirect impact on the market.
- Measure the impact of high global inflation on market growth.
- Create regional and country strategies on the basis of local data and analysis.
- Identify growth segments for investment.
- Outperform competitors using forecast data and the drivers and trends shaping the market.
- Understand customers based on the latest market shares.
- Benchmark performance against key competitors.
- Suitable for supporting your internal and external presentations with reliable high quality data and analysis.
- Report will be updated with the latest data and delivered to you with an Excel data sheet for easy data extraction and analysis.
- All data from the report will also be delivered in an excel dashboard format.
Where is the largest and fastest growing market for microlending? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? This report 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.
Report Scope
Markets Covered:1) By Provider: Banks; Micro Finance Institute (MFI); NBFC (Non-Banking Financial Institutions); Other Provider
2) By End-user: Small Enterprises; Micro Enterprises; Solo entrepreneurs and self-employed
Key Companies Mentioned: Larsen and Toubro Ltd.; ICICI Bank Ltd.; Bajaj Finserv Ltd.; HDB Financial Services Ltd.; Bandhan Bank Ltd.
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 Segmentation: 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
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Larsen and Toubro Ltd.
- ICICI Bank Ltd.
- Bajaj Finserv Ltd.
- HDB Financial Services Ltd.
- Bandhan Bank Ltd.
- LendingClub Corporation
- Faulu Microfinance Bank Limited
- MicroVest LLC
- BlueVine Inc.
- Kiva Microfunds
- Panamax Inc.
- Lendio Inc.
- Fusion Micro Finance Ltd.
- Accion International
- Equitas Small Finance Bank Ltd.
- ESAF Small Finance Bank
- Fincare Small Finance Bank Ltd.
- Ujjivan Small Finance Bank Ltd.
- Oakam Ltd.
- On Deck Capital Inc.
- Small Industries Development Bank of India
- One Acre Fund
- Samia African Microfinance Limited
- FINCA International Impact Investments
- Fonds National de Coopératives de Développement Economique et Sociale Agricole
- Gray Ghost Ventures LLC
- Elevar Equity LLC
- Incofin Investment Management plc
- ResponsAbility Investments AG
- ImpactAssets Fund
Methodology
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