According to the publisher, the alternative lending market in the country is expected to grow by 36.9% on an annual basis to reach US$ 5.49 billion in 2023.
Medium to long term growth story of alternative lending in Australia remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 20.3% during 2023-2027. The alternative lending market in the country will increase from US$ 4.01 billion in 2022 to reach US$ 11.50 billion by 2027.
As rising interest rates drive borrowers away from the big banks, the alternative lending segment is poised to record accelerated growth in Australia in 2023. Six in ten borrowers are considering online lenders to access low-cost loans in Australia. Cheaper interest rates, lower fees, convenience, and faster loan approvals are among the factors aiding the popularity of alternative lenders.
The shift towards alternative lenders has resulted in higher loan disbursals for providers and the trend is projected to further continue in 2023. In addition to the domestic market, alternative lenders are also seeking to expand their footprint in the global region. This is expected to lead to more strategic collaborations and mergers and acquisition deals from the short to medium-term perspective.
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.
Medium to long term growth story of alternative lending in Australia remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 20.3% during 2023-2027. The alternative lending market in the country will increase from US$ 4.01 billion in 2022 to reach US$ 11.50 billion by 2027.
As rising interest rates drive borrowers away from the big banks, the alternative lending segment is poised to record accelerated growth in Australia in 2023. Six in ten borrowers are considering online lenders to access low-cost loans in Australia. Cheaper interest rates, lower fees, convenience, and faster loan approvals are among the factors aiding the popularity of alternative lenders.
The shift towards alternative lenders has resulted in higher loan disbursals for providers and the trend is projected to further continue in 2023. In addition to the domestic market, alternative lenders are also seeking to expand their footprint in the global region. This is expected to lead to more strategic collaborations and mergers and acquisition deals from the short to medium-term perspective.
Firms are experiencing high growth in customer acquisition amid high demand for credit in Australia
With access to credit from banking institutions becoming more expensive and difficult, more businesses and consumers are turning to alternative lending providers in Australia. This is driving the uptake in new client onboarding for providers in the region.- In February 2023, Opti Pay, the Australian financing firm announced that the firm had issued over A$25 million in new facilities since January 2023. This represents a growth of 10x for the financing firm in Australia. The growth has been largely driven by rising interest rates and the soaring cost of living, as access to traditional credit becomes difficult for most businesses.
- The firm offers invoice financing, thereby enabling businesses to improve their cash flow. The majority of the new customers for the firm are coming from sectors such as agriculture, mining services, transport and logistics, and manufacturing. The need for working capital amid the current inflationary environment is expected to further aid the growth of alternative lending providers. In addition to the B2B sector, providers focused on the B2C segment are also expected to achieve high growth in terms of customer acquisition and loan disbursals from the short to medium-term perspective.
Australian firms are acquiring digital mortgage lenders globally to drive geographical expansion in 2023
With the global alternative lending market expected to enter into a high-growth period in 2023, Australian firms are seeking acquisition deals to drive their geographical expansion and achieve accelerated growth.- In March 2023, ColCap, the Australian non-bank lender, announced that the firm had acquired an 80% stake in United Kingdom-based Molo. The acquisition comes after the two firms entered into a strategic collaboration in 2022. Leveraging the expertise and presence of Molo in the United Kingdom, ColCap is seeking to tap into the multi-billion-dollar mortgage market. For Molo, the acquisition by ColCap will enable the firm to further innovate its product offering, while making the mortgage process more simplified.
Firms are raising funding rounds to innovate their product offering and strengthen their position in the Australian market
To transform the digital lending category in Australia and to strengthen their position by entering into new business verticals, firms are raising venture capital and private equity funding in Australia.- In December 2022, Tic:Toc, the Australia-based fintech firm, announced that the firm had secured another A$24 million in funding as part of its Series D round, which was led by IAG Firemark Ventures. With this round, the firm has an approximate valuation of A$230 million. The firm is planning to use the funding round to develop its platform and drive transformation in the digital lending category. Furthermore, the firm will also use the capital to embed additional products and services, including insurance into its digital lending platform.
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 report provides in-depth data-centric analysis of Alternative Lending industry in Australia through 127 tables and 150 charts. Below is a summary of key market segments:Australia Economic Indicators
- Gross Domestic Product at Current Prices
- Population
- Unbanked Population
- Unemployment Rate
- Loan Default Rate
Australia Alternative Lending Market Size and Forecast
- Transaction Value
- Average Transaction Value
- Transaction Volume
Australia Alternative Lending Market Size and Forecast by End User
- End User - Business
- End User - Consumer
Australia 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
Australia 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
Australia 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
Australia 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
Australia 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 in Australia, covering the following key areas:- Comprehensive Market Intelligence: This report offers a thorough scrutiny of the alternative lending market in Australia, providing a deep dive into its size, growth potential, emerging trends, and key industry leaders. Investors and entrepreneurs can identify potential areas for market expansion, based on the payment instruments, finance models, and loan types covered in the report.
- Economic Indicators: Access to Australia's economic indicators, including GDP, unbanked population, unemployment rate, and loan default rate, to empower your business with crucial data for market analysis and strategic planning.
- Industry Attractiveness Analysis: In-depth trend analyses for transaction value, average value, and transaction volume within the Australia alternative lending sector. This information aids in assessing the industry's appeal and potential for growth.
- Strategic Segmentation Analysis: The report presents an extensive analysis of market segments based on financial models (P2P marketplace lending, balance sheet lending, invoice trading, debt-based securities, equity-based crowdfunding, real estate crowdfunding, and others), payment methods (cash, cheques, credit transfers, direct debits, debit cards, credit cards, and e-money) and end-users (consumers, businesses, and property).
- Growth Projections: The report contains future growth projections for the Australia alternative lending market, classified by end-user, financial model, and payment instrument. These projections offer insights into areas with growth potential within various market segments, aiding your company in strategy alignment and informed decision-making.
- Loan Type Analysis: A thorough examination 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), offering valuable market insights.
- Consumer Attitude and Behaviour Analysis: Get a closer look at consumer behaviour and attitude, segmented by age, income, and gender, which can aid in developing targeted marketing and lending strategies.
Table of Contents
1. About this Report
2. Australia Economic Indicators
3. Australia Alternative Lending Industry Attractiveness
4. Australia Alternative Lending Market Size and Forecast by End User
5. Australia Alternative Lending Market Size and Forecast by Finance Models
6. Australia Alternative Lending Market Size and Forecast by Payment Instrument
7. Australia Alternative Lending Market Size and Forecast by Payment Instrument to Model
8. Australia Alternative Lending Market Size and Forecast by Loan Types
9. Australia Alternative Lending Analysis by Consumer Attitude and Behaviour
10. Further Reading
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 164 |
| Published | October 2023 |
| Forecast Period | 2023 - 2027 |
| Estimated Market Value ( USD | $ 5.5 Billion |
| Forecasted Market Value ( USD | $ 11.5 Billion |
| Compound Annual Growth Rate | 20.3% |
| Regions Covered | Australia |
