According to the publisher, the alternative lending market in the country is expected to grow by 16.3% on an annual basis to reach US$ 254.23 billion in 2023.
Medium to long term growth story of alternative lending in United States remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 8.7% during 2023-2027. The alternative lending market in the country will increase from US$ 218.61 billion in 2022 to reach US$ 354.49 billion by 2027.
Americans are borrowing more to cope with rising inflation and soaring cost of living. With the Federal Reserve hiking rates consistently over the last few quarters, traditional borrowing has become significantly expensive compared to the time during the pandemic outbreak. The alternative lending segment is expected to benefit from this, as consumers look for more affordable and conveniently available short-term loans.
Amid the growing demand, which is poised to accelerate further in 2023, firms are expected to raise capital from venture capital and private equity firms to offer credit to underbanked customers in the United States. Furthermore, domestic players are also projected to expand their geographical presence, as the alternative lending market is poised for accelerated growth in the global market.
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 States remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 8.7% during 2023-2027. The alternative lending market in the country will increase from US$ 218.61 billion in 2022 to reach US$ 354.49 billion by 2027.
Americans are borrowing more to cope with rising inflation and soaring cost of living. With the Federal Reserve hiking rates consistently over the last few quarters, traditional borrowing has become significantly expensive compared to the time during the pandemic outbreak. The alternative lending segment is expected to benefit from this, as consumers look for more affordable and conveniently available short-term loans.
Amid the growing demand, which is poised to accelerate further in 2023, firms are expected to raise capital from venture capital and private equity firms to offer credit to underbanked customers in the United States. Furthermore, domestic players are also projected to expand their geographical presence, as the alternative lending market is poised for accelerated growth in the global market.
Firms are raising capital to offer credit services to more underbanked and unbanked consumers in the United States
With consumers struggling to cover their bills as pandemic savings run out, the demand for credit has been on the surge amid the current macroeconomic environment. To serve the underbanked and unbanked section of the community, who do not have easy access to credit cards and traditional borrowing, alternative lending providers are raising capital rounds. For instance,- Avant, the United States-based financial service provider, announced that the firm had secured US$250 million in funding from Ares Management Alternative Credit funds in December 2022. The firm is planning to use the capital infusion to fuel its credit portfolio and development of a next-gen platform.
- Avant is focused on offering personal loans and credit cards to non-prime customers that are underserved by conventional banking institutions. Since its inception in 2012, the firm had disbursed over US$9 billion in credit to more than three million customers.
- In April 2023, Presta, the digital lending infrastructure provider in the United States, announced that the firm had raised US$3.3 million. The capital round was backed by Distributed Ventures and included participation from Zeal Capital Partners, The Fund, Matchstick Ventures, Jumpstart Ventures, and Tech Stars. The software solution offered by Presta enables lenders to efficiently manage their lending processes, including underwriting, closing, servicing, and reporting.
Domestic lending automation platforms are expanding their global presence to drive accelerated growth
The demand for credit is expected to grow significantly in the global market due to rising inflation and the interest rate environment. This, in turn, will accelerate the number of players entering the alternative lending market in 2023. To offer infrastructure to such players, United States-based lending automation platforms are expanding their global presence in the European region, where inflation has reached multi-year highs.- 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.
Prospective homeowners are turning to alternative financing options in the United States
Rising homeownership costs, coupled with the growing difficulties in accessing mortgages through conventional channels, have resulted in millions of Americans turning to alternative financing options. With interest rates rising consistently, coupled with recessionary fears, more and more Americans are expected to flock to alternative lenders in 2023. This, therefore, will keep aiding the growth of the alternative lending market in the United States 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.
Scope
This report provides in-depth data-centric analysis of Alternative Lending industry in United States through 127 tables and 150 charts. Below is a summary of key market segments:United States Economic Indicators
- Gross Domestic Product at Current Prices
- Population
- Unbanked Population
- Unemployment Rate
- Loan Default Rate
United States Alternative Lending Market Size and Forecast
- Transaction Value
- Average Transaction Value
- Transaction Volume
United States Alternative Lending Market Size and Forecast by End User
- End User - Business
- End User - Consumer
United States 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 States 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 States 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 States 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 States Alternative Lending Analysis by Consumer Attitude and Behaviour
- By Age
- By Income
- Gend
Reasons to buy
This report offers a comprehensive insight into the alternative lending market in United States, covering the following key areas:- Comprehensive Market Intelligence: This report offers a thorough scrutiny of the alternative lending market in United States, 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 States'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 States 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 States 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 States Economic Indicators
3. United States Alternative Lending Industry Attractiveness
4. United States Alternative Lending Market Size and Forecast by End User
5. United States Alternative Lending Market Size and Forecast by Finance Models
6. United States Alternative Lending Market Size and Forecast by Payment Instrument
7. United States Alternative Lending Market Size and Forecast by Payment Instrument to Model
8. United States Alternative Lending Market Size and Forecast by Loan Types
9. United States 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 | $ 254.2 Billion |
| Forecasted Market Value ( USD | $ 354.5 Billion |
| Compound Annual Growth Rate | 8.7% |
| Regions Covered | United States |
