According to the publisher, the alternative lending market in this region is expected to grow by 15.1% on an annual basis to reach US$295.0 billion in 2023.
Medium to long term growth of alternative lending in Asia Pacific remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 9.4% during 2023-2027. The alternative lending market in the region will increase from US$256.3 billion in 2022 to reach US$422.6 billion by 2027.
The Asia Pacific alternative lending industry is poised to record strong growth over the next five years. Driven by the growing shift toward credit solutions offered by non-banking institutions, coupled with the rampant rise in the e-commerce market, is aiding alternative credit demand in the region. India and China are expected to lead the industry growth across the Asia Pacific from the short to medium-term perspective.
In Southeast Asia, the competitive landscape has been growing at a rapid rate, as more and more firms are seeking to tap into the underbanked and unbanked population across the region. Going forward, the publisher expects a high amount of venture capital and private equity funding to enter the Asia Pacific alternative lending sector, thereby aiding innovation and market growth over the next three to four years.
A high proportion of underbanked consumers are embracing alternative lending platforms in Southeast Asia
The alternative lending industry is contributing significantly in driving financial inclusion in Southeast Asia. A high proportion of underbanked consumers are turning to alternative lending platforms in the region after they fail to secure financing from friends and families and conventional channels like banking institutions.
- The report from the Cambridge Centre for Alternative Finance and the Asian Development Bank Institute, in December 2022, revealed that 66% of ASEAN consumers turn to alternative financing platforms after failing to secure credit from friends and families, and banks. The report also revealed that a growing proportion of consumers are opting for buy now pay later products to fund their purchases in the region.
- Like retail customers, micro, small and medium-sized enterprises have also increased their usage of digital lending platforms in Southeast Asia, as businesses are failing to secure funding from banks and other sources such as friends and families. The percentage of businesses turning to alternative lending platforms is projected to further grow in Southeast Asia amid the current macroeconomic environment.
As the trend continues to grow in 2023, the publisher expects more firms to enter the market to serve the growing credit demand among retail and business customers. This will support the competitive landscape in the segment, while also aiding the overall industry growth from the short to medium-term perspective.
Alternative lending providers are seeking acquisition deals to expand their presence in the fast-growing fintech sector in India
Millennials and consumers from Tier I and II cities are driving the credit demand in India and the trend is projected to further accelerate over the next five years. The growing internet access and tech-savvy population mean that there is substantial headroom for growth in the Indian alternative lending market, especially in sectors like healthcare. To tap into this growth potential, firms are entering into acquisition deals to expand their presence across the country.
- In March 2023, LoanTap, the digital lending platform, announced that the firm had entered into an acquisition deal with Unofin, the healthcare-focused fintech startup. The acquisition is part of the firm's strategy to expand its presence in the healthcare finance sector. The acquisition will also boost the gross loan disbursal for LoanTap over the next few years. As of March 2023, Unofin has serviced more than 120,000 customers with INR 1200 million of gross loan disbursal. Operating in seven cities in India, Unofin has forged alliances with 1,600 healthcare service providers.
With a large percentage of the Indian population lacking insurance, healthcare financing is projected to become a multi-billion-dollar market over the next few years. Consequently, expansion into the healthcare financing space is projected to accelerate the growth of Loan Tap over the next five years.
Digital lenders are expected to launch new lending solutions catering to the needs of businesses in Indonesia
In addition to the growing demand for alternative lending products in the B2C segment, the need for credit is also on the rise in the B2B category, especially for small and medium-sized businesses. The current macroeconomic environment, including high inflation and interest rates, means that access to traditional credit is becoming expensive for SMEs. Consequently, more and more businesses are expected to turn to digital lenders to meet their working capital requirements. As a result, the publisher expects alternative lending providers to launch new products and solutions catering to the needs of businesses in Indonesia.
- Digital lenders such as PT Bank Neo Commerce have already announced the launch of new lending products for SMEs in Indonesia. This launch is aimed at driving the monthly active users of its applications to over 50%, compared to 30% to 40% as of November 2022.
Going forward, alternative lenders are also expected to follow the same strategy. The launch of these products, coupled with the entry of new fintech firms in the segment, will keep driving the competitive landscape as well as innovation in the Indonesian alternative lending industry over the next five years.
Embark on a detailed exploration of the alternative lending market with our latest report, dissecting key economic indicators to provide a holistic view of this dynamic landscape. Delve into the alternative lending market's expansive horizons, from overall market size and forecasts to granular analyses of end-user segments, diverse finance models, and payment instrument intricacies.
This report helps in navigating the nuanced relationships between payment instruments and lending models, offering a detailed breakdown of transaction dynamics. Uncover the multifaceted nature of loans, from personalized B2C offerings like payroll advances to strategic B2B solutions like lines of credit. Complementing these insights, delve into consumer attitudes and behaviors, decoding the impact of age, income, and gender on financial choices.
This report provides a thorough knowledge of alternative lending market dynamics, market size and forecast with more than 75+ KPIs. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.
Scope
This title is a bundled offering, combining regional and country reports.
Country reports in this bundled offering provide in-depth analysis of Alternative Lending industry. Below is a summary of key market segments offered at country level:
This report provides in-depth data-centric analysis of Alternative Lending industry in through 127 tables and 150 charts. Below is a summary of key market segments:
Economic Indicators
- Gross Domestic Product at Current Prices
- Population
- Unbanked Population
- Unemployment Rate
- Loan Default Rate
Alternative Lending Market Size and Forecast
- Transaction Value
- Average Transaction Value
- Transaction Volume
Alternative Lending Market Size and Forecast by End User
- End User - Business
- End User - Consumer
Alternative Lending Market Size and Forecast by Finance Models
- P2P Marketplace Consumer Lending
- P2P Marketplace Business Lending
- P2P Marketplace Property Lending
- Balance Sheet Consumer Lending
- Balance Sheet Business Lending
- Balance Sheet Property Lending
- Invoice Trading
- Debt Based Securities
- Equity Based Crowd Funding
- Real Estate Crowd funding
Alternative Lending Market Size and Forecast by Payment Instrument - Transaction Value, Volume and Average Value
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Model
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Consumer Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Business Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Property Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Consumer Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Business Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Property Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Invoice Trading
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Debt Based Securities
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Equity Based Crowd Funding
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Real Estate Crowd funding
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Loan Types
- B2C Loans
- Personal Loan
- Payroll Advance
- Home Improvement
- Education/Student Loans
- Point of Sale
- Auto Loans
- Medical Loans
- B2B Loans
- Lines of Credit
- Merchant Cash Advance
- Invoice Factoring
- Revenue Financing
Alternative Lending Analysis by Consumer Attitude and Behaviour
- By Age
- By Income
- Gender
Reasons to buy
This report offers a comprehensive insight into the alternative lending market at the regional level, covering Asia Pacific. It provides a detailed analysis of key areas that are critical for understanding and participating in the regional alternative lending landscape:
- Comprehensive Regional Market Intelligence: Gain in-depth insights into the alternative lending market within Asia Pacific region, including its size, growth potential, emerging trends, and key industry leaders. Investors and entrepreneurs can identify potential areas for market expansion by examining payment instruments, finance models, and loan types specific to the region.
- Regional Economic Indicators: Access essential economic indicators from multiple countries within the region, including GDP, unbanked population, unemployment rates, and loan default rates. This data empowers businesses with crucial information for Asia Pacific market analysis and strategic planning.
- Industry Attractiveness Analysis: Dive into comprehensive trend analyses for transaction value, average transaction value, and transaction volume within the regional alternative lending sector. This information aids in assessing the industry's appeal and potential for growth within the specific Asia Pacific.
- Strategic Segmentation Analysis at the Regional Level: Explore extensive market segmentation based on end-users (consumers, businesses, and property), financial models (P2P marketplace lending, balance sheet lending, invoice trading, debt-based securities, equity-based crowdfunding, real estate crowdfunding, and others), and payment methods (cash, cheques, credit transfers, direct debits, debit cards, credit cards, and e-money) specific to the region.
- Growth Projections: Benefit from future growth projections for the alternative lending market within the region, classified by end-users, financial models, and payment instruments. These projections offer insights into areas with growth potential within different market segments, helping businesses to align strategies and make informed decisions within the regional context.
- Loan Type Analysis: Gain a comprehensive understanding of loan types, including B2C Loans (Personal Loans, Payroll Advances, Home Improvement, Education/Student Loans, Point of Sale, Auto Loans, Medical Loans) and B2B Loans (Lines of Credit, Merchant Cash Advance, Invoice Factoring, Revenue Financing) within the specific geographic area, offering valuable market insights.
- Consumer Attitude and Behaviour Analysis: Explore consumer behaviour and attitudes, segmented by age, income, and gender, within the Asia Pacific. This analysis aids in developing targeted marketing and lending strategies tailored to the local markets.
Table of Contents
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 2296 |
| Published | October 2023 |
| Forecast Period | 2023 - 2027 |
| Estimated Market Value ( USD | $ 295 Billion |
| Forecasted Market Value ( USD | $ 422.6 Billion |
| Compound Annual Growth Rate | 9.4% |
| Regions Covered | Asia Pacific |
