Lending Market Report 2025

The lending market size has grown strongly in recent years. It will grow from $11.35 trillion in 2024 to $12.18 trillion in 2025 at a compound annual growth rate (CAGR) of 7.3%. The growth in the historic period can be attributed to strong economic growth in emerging markets, increase in internet penetration, rise in consumer spending, rise in construction activity, and increase in the number of vehicle loans.

The lending market size is expected to see strong growth in the next few years. It will grow to $16.1 trillion in 2029 at a compound annual growth rate (CAGR) of 7.2%. The growth in the forecast period can be attributed to blockchain penetration across various sectors, and increasing higher education. Major trends in the forecast period include investing in technologies to offer alternative lending services to boost profit margins, adopting digital technologies for faster approval of commercial loans and thereby enhance customer satisfaction, increasing the focus on participation lending to reduce risks and increase profitability, investing in laas platforms to capitalize on their rising popularity, and implementing the artificial intelligence in the operations for cost and time efficiency.

The forecast of 7.2% growth over the next five years reflects a slight reduction of 0.1% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through increased interest rates, as credit decisioning engines and loan origination systems, mainly imported from India and Ireland, experience deployment delays due to higher technology costs. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The lending market is anticipated to experience growth due to the increasing number of small businesses. Small businesses, characterized by fewer employees and lower revenue compared to larger enterprises, are essential recipients of loans for starting up, expanding, and meeting financial needs. This not only aids in new investments but also stimulates economic demand. Notably, the US Small Business Administration (SBA) reported that the number of small businesses in the US reached 33.2 million in 2022, marking a significant increase of 700,000 from the previous year, 2021. Hence, the surge in small businesses is a driving force behind the lending market.

The lending market is poised for growth with the ongoing trend of digitalization and the prevalence of online platforms. Digitalization involves the transformation of traditional business processes into a digital format, facilitated by digital technologies. Simultaneously, online platforms provide virtual spaces for user interactions, transactions, and collaborations. These trends benefit the lending industry by streamlining processes, improving accessibility, and enhancing customer experiences. In June 2023, UK Finance Limited reported a substantial increase in electronic payment transactions by debit and credit cards, showcasing the impact of digitalization and online platforms on financial transactions. Consequently, the rise in digitalization and online platforms is a significant driver for the lending market.

Leading companies in the lending market are embracing innovation through platforms such as crypto lending platforms to maintain a competitive edge. Crypto lending platforms are online spaces facilitating the borrowing and lending of cryptocurrencies. Coinbase Global Inc., for instance, introduced a crypto lending platform in September 2023, aimed at providing institutions with economic freedom and opportunities in alignment with the company's commitment to advancing the financial system using cryptocurrencies. This lending program enables institutions to lend digital assets to Coinbase under standardized terms, adhering to a Regulation D exemption.

Participation lending, also known as syndicated lending, is gaining prominence for its ability to mitigate risks associated with large capital lending. Participation lending involves multiple lenders contributing to a loan provided to a single borrower. Typically initiated by one financial institution and administered by another, participation loans offer diversified loan products and enhance business liquidity. Financial institutions engage in partnership to share funding and risk, presenting larger lending opportunities. This collaborative approach streamlines the lending process, eliminating manual tracking and optimizing efficiency. Companies such as Coastway Community Bank, Shamrock Financial Corp., and Homestar Mortgage are actively involved in participation lending.

Major companies operating in the lending market include China Construction Bank Corporation, Agricultural Bank of China, Bank of China ltd, JPMorgan Chase & Co. (JPM), Citi Group, Bank of America (BoA), Wells Fargo & Co., BNP Paribas, Lending Kart, WeLab, Industrial and Commercial Bank of China Limited, HSBC, Royal Bank of Scotland, Barclays, Lloyds Banking Group, Standard Chartered, Santander, Nationwide Building Society, Schroders, Close Brothers, Coventry Building Society, Deutsche Bank, Commerzbank, KFW Bankgruppe, DZ Bank, UniCredit Bank AG, NRW bank, Norddeutsche Landesbank, Credit Agricole, Danske Bank A/S, Midas Corporación Financiera S.A, European Investment Bank, Mitsubishi UFJ Financial Group, Bank of Montreal, Royal Bank of Canada (RBC), Business Development Bank of Canada, Borrowell Inc, Clearbanc, CreditSnap Inc, Dealnet Capital, Itáu Unibanco, Caixa Econômica, Celulosa argentina, Ternium argentina, Banco (BCP), BBVA Continental, Scotiabank Peru, Interbank, Red Capital, Maalem Finance Company, MoneyDila, Abu Dhabi Finance, BeeHive, Tarya, Blender, eloan.co.il, CITI, Standard Bank Group, FirstRand, ABSA Group, Nedbank Group, National Bank of Egypt, Attijariwafa Bank, Groupe Banques Populaire.

Western Europe was the largest region in the lending market in 2024. Asia-Pacific was the second-largest region in the lending market. The regions covered in the lending market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the lending market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The lending market includes revenues earned by entities by providing secured or unsecured loans to borrowing entities. Lending entities include establishments such as finance companies, personal credit institutions, loan companies and student loan companies. This market covers all types of loans including mortgage loans, personal loans, working capital loans, vehicle loans and industrial loans. Revenue generated from the lending market includes all the interest charges levied by the lending entities such as banks and financial institutions against the loans sanctioned, but not the value of the loans themselves. This market includes interest charged by the banks on credit cards and other payment cards as well as mortgages and other loans. 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.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a considerable impact on the financial sector, particularly in the areas of investment strategies and risk management. The increased tariffs have intensified market volatility, leading institutional investors to adopt more cautious approaches and driving greater demand for hedging solutions. Banks and asset managers are encountering higher costs in cross-border transactions as disrupted global supply chains and declining corporate earnings weigh on equity market performance. At the same time, insurance providers are facing elevated claims risks linked to supply chain interruptions and trade-related business losses. Furthermore, reduced consumer spending and weaker export demand are limiting credit growth and dampening investment appetite. In response to these challenges, the sector must focus on diversification, accelerate digital transformation, and strengthen scenario planning to manage the heightened economic uncertainty and safeguard profitability.

Lending involves offering money or resources to another party with the expectation that it will be repaid. This process usually includes a formal agreement that details the terms and conditions of the loan. Lending serves to facilitate both personal and business financing, enabling individuals and organizations to make purchases or investments they may not be able to afford upfront.

The primary types of lending are corporate lending, household lending, and government lending. Corporate lending involves loans designated for business purposes. These loans may have variable interest rates, fixed rates, or floating rates. Lending channels can be categorized as offline or online.

The lending research report is one of a series of new reports that provides lending statistics, including lending industry global market size, regional shares, competitors with lending shares, detailed lending segments, market trends and opportunities, and any further data you may need to thrive in the lending industry. This lending research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

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.

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