According to the publisher, the alternative lending market in the country is expected to grow by 20.2% on an annual basis to reach US$ 48.06 billion in 2023.
Medium to long term growth story of alternative lending in United Kingdom remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 10.8% during 2023-2027. The alternative lending market in the country will increase from US$ 39.98 billion in 2022 to reach US$ 72.48 billion by 2027.
The alternative lending market is growing at a rapid rate in the United Kingdom. Driven by higher interest rates and an inflationary environment, the sector is poised to record further growth in 2023. As a result, challenger banks and digital lenders are expected to experience a surge in their total loan disbursals in the United Kingdom over the next few quarters.
Amid the booming alternative lending space, digital lending marketplaces are also upgrading their platform and adding new products to serve a wider range of consumers and businesses in the United Kingdom. From the short to medium-term perspective, the publisher also expects foreign players in the alternative lending segment to expand their footprint in the United Kingdom market. This will further aid innovation, competitive landscape, and market growth 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.
Medium to long term growth story of alternative lending in United Kingdom remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 10.8% during 2023-2027. The alternative lending market in the country will increase from US$ 39.98 billion in 2022 to reach US$ 72.48 billion by 2027.
The alternative lending market is growing at a rapid rate in the United Kingdom. Driven by higher interest rates and an inflationary environment, the sector is poised to record further growth in 2023. As a result, challenger banks and digital lenders are expected to experience a surge in their total loan disbursals in the United Kingdom over the next few quarters.
Amid the booming alternative lending space, digital lending marketplaces are also upgrading their platform and adding new products to serve a wider range of consumers and businesses in the United Kingdom. From the short to medium-term perspective, the publisher also expects foreign players in the alternative lending segment to expand their footprint in the United Kingdom market. This will further aid innovation, competitive landscape, and market growth over the next five years.
Challenger banks and digital lenders are recording strong growth amid the current macroeconomic environment
With inflation soaring and the subsequent surge in the cost of living, consumers are finding it difficult to fund their purchases and daily living expenses in the United Kingdom. The Office for National Statistics reports that there has been a significant increase in the prices of food and non-alcoholic beverages over the past 12 months leading up to March 2023. These factors have resulted in a high-growth environment for alternative lending platforms.- Freedom Finance, one of the leading digital consumer lending platforms, revealed that loans requested on the platform from online lenders surged by 9% in 2022 when compared to the year before. The firm also revealed that the demand on its platform has increased 50% as of April 2023, compared to the same period in 2022. Much of the demand is coming from new users with higher incomes.
Global lending automation platforms are expanding their presence into the United Kingdom market
With the alternative lending industry poised to grow rapidly over the next five years in the United Kingdom, global lending automation platforms are eyeing the European market to accelerate their growth in the segment.- In November 2022, Turnkey Lender, the United States-based lending automation platform, announced that the firm is expanding in the United Kingdom and Ireland markets. The automation platform is used by traditional, embedded, and alternative creditors and now lending businesses in the United Kingdom will also benefit from the AI-driven platform.
Firms are forging institutional deals to fund loans to small and medium-sized housing developers
With access to traditional credit becoming difficult and expensive amid the current macroeconomic environment, small and medium-sized businesses are turning to alternative lending providers in the United Kingdom. To fund loans to these businesses, firms are forging institutional deals.- Crowd Property, an online property lending platform in the United Kingdom, announced that the firm had secured £15 million in a funding line from British Business Investments in April 2023. The funding line is aimed at supporting housebuilding activities in the United Kingdom. The firm is planning to utilize the capital to fund loans to small and medium-sized housing developers. In another deal, in April 2023, the firm further secured a funding partnership with an unnamed bank in the United Kingdom.
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 United Kingdom through 127 tables and 150 charts. Below is a summary of key market segments:United Kingdom Economic Indicators
- Gross Domestic Product at Current Prices
- Population
- Unbanked Population
- Unemployment Rate
- Loan Default Rate
United Kingdom Alternative Lending Market Size and Forecast
- Transaction Value
- Average Transaction Value
- Transaction Volume
United Kingdom Alternative Lending Market Size and Forecast by End User
- End User - Business
- End User - Consumer
United Kingdom 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
United Kingdom 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
United Kingdom 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
United Kingdom 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
United Kingdom 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 United Kingdom, covering the following key areas:- Comprehensive Market Intelligence: This report offers a thorough scrutiny of the alternative lending market in United Kingdom, 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 United Kingdom'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 United Kingdom 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 United Kingdom 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. United Kingdom Economic Indicators
3. United Kingdom Alternative Lending Industry Attractiveness
4. United Kingdom Alternative Lending Market Size and Forecast by End User
5. United Kingdom Alternative Lending Market Size and Forecast by Finance Models
6. United Kingdom Alternative Lending Market Size and Forecast by Payment Instrument
7. United Kingdom Alternative Lending Market Size and Forecast by Payment Instrument to Model
8. United Kingdom Alternative Lending Market Size and Forecast by Loan Types
9. United Kingdom 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 | $ 48.1 Billion |
| Forecasted Market Value ( USD | $ 72.5 Billion |
| Compound Annual Growth Rate | 10.8% |
| Regions Covered | United Kingdom |
