Report Description

According to PayNXT360, alternative lending market in this region expected to grow by 24.3% on annual basis to reach US$74,557.8 million in 2023.

Medium to long term growth story of alternative lending in Europe remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 18.1% during 2023-2027. The alternative lending market in this region will increase from US$60,002.3 million in 2022 to reach US$145,193.7 million by 2027.

Emerging out of the global pandemic outbreak, the alternative lending industry is showing positive growth signs in the European market. These service providers offered working capital support to thousands of small and medium-sized businesses, as incumbent banks were struggling to cope with the rising number of firms requiring urgent funding. In 2023, the market is poised to record further growth, owing to higher inflation and interest rate environment.

Amid the rising credit demand, the competitive landscape is also growing at a rapid rate in the European market. With firms raising funding rounds to accelerate growth, onboard more customers, and invest in technology, the sector is projected to record strong growth over the next five years. The United Kingdom is expected to lead regional growth from the short to medium-term perspective. Going forward, PayNXT360 also expects more global players to expand their service offerings and presence in the European market through mergers and acquisition deals.

Rising inflation and soaring cost of living are leading more consumers towards alternative lenders, including BNPL providers

Inflation has reached multi-year highs in most European markets. With the soaring cost of living, consumers are finding it difficult to fund their daily purchases and as a result, many are turning to alternative lenders, including buy now pay later providers. Young generation consumers, on the other hand, are still most likely to use the deferred payment solution. Of the 18 to 24-year-olds surveyed by the Centre for Financial Capability, 54% of the consumers are likely to take out short-term credit loans from a BNPL provider over the next 12 months in the United Kingdom. This represents a growth of 6% compared to 2021. The fact that consumers across all age groups are turning to the BNPL payment method shows that the demand for short-term credit will remain robust in 2023, thereby aiding the growth of the alternative lending market in Europe.

Alternative lenders are raising capital rounds to accelerate growth and expansion in the regional market

The alternative lending industry is poised to record strong growth over the next three to four years. To tap into the high-growth potential of the segment, firms are raising venture capital and private equity funding to accelerate their growth and expand their regional presence in Europe.
• In March 2023, Abound, a United Kingdom-based consumer lending service, announced that the firm had raised US$601 million in a debt and equity funding round. The firm is planning to invest the capital for financing loans, bringing more customers to its platform, and investing in technology. In addition to its presence in the B2C segment, the firm is also planning to expand operations into the B2B category in Europe.
• ArK Kapital, another alternative lending provider in Europe, announced that the firm had raised ?100 million in March 2023. The funding round will not only boost its available capital pool but will also enable the firm to expand its presence in the German market in 2023. In addition to its home market Sweden, the firm is also operating in Denmark, Finland, the Netherlands, and the United Kingdom.
• In January 2023, October, the alternative lender focused on the SME market, announced that the firm had raised ?35 million in a funding round. The capital infusion came from European Investment Fund and Invest-NL. The firm is planning to use the capital to provide credit to over 3,000 SMEs in Europe. Over the next two years, the firm targets a total of ?400 million in lending.
Going forward, PayNXT360 expects more such alternative lending providers to raise funding rounds in Europe, which will subsequently aid the competitive landscape, innovation, and market growth over the next five years.

Challenger banks and digital lenders are recording strong growth amid the current macroeconomic environment in the United Kingdom

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. Freedom Finance also announced that digital lenders and challenger banks have increased their unsecured personal lending to consumers by more than ?1.5 billion in 2022. This represents a 34% growth year over year. From the short to medium-term perspective, PayNXT360 expects further growth in loan disbursals, thereby aiding the growth of the alternative lending market in the United Kingdom.

This report provides a detailed data-centric analysis of the alternative lending market covers in-depth market potential and various. 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.

PayNXT360’s 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 from PayNXT360 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 Europe. 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 Europe 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 Europe 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 Europe.
• 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 Europe. This analysis aids in developing targeted marketing and lending strategies tailored to the local markets.