Consumer Credit Market Size, Share, Growth, and Industry Growth by Type (Cloud and On-Premises), By Application (Individual, Enterprise, and Others), Regional Forecast To 2032

Updated On: 01 April 2024

Consumer Credit Market REPORT OVERVIEW

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The global consumer credit market size was USD 11300 million in 2021 and market is projected to touch USD 18211 million by 2032, exhibting a CAGR of 4.4% during the forecast period.

Consumer credit, also known as consumer debt, allows consumers to borrow money where one party is allowing other party to provide money or any another resources to another party. Credit enables consumers to buy goods or any other assets without having to pay in cash at the time of the purchase. It is a personal loan or debt taken to purchase goods or services. It can also include collateralized loans such as mortgage or car loans. Credit is a technique of making reciprocity formal, legally enforceable, and extensible to a large group of distinct people.

The growing demand for consumer credit is growing owing to the growing banking, financial services and insurance (BFSI) industry. It is one of the key factors that is used for high economic growth for micro and medium-enterprises and businesses. Increasing investments from banks and various financial institutions in micro, medium, and large enterprises/businesses (MSMEs) which is expected to drive the market growth. Demand to decrease credit gap is anticipated to drive the market growth.  

COVID-19 Impact: Halt on Financial Industry to Hinder Market Growth

The effects of the COVID-19 pandemic are already being felt on a global level, the global bike locks market was significantly influenced. The outbreak of COVID-19 had a negative impact on several markets. Various countries went into lockdown. With sudden pandemic, all kinds of businesses observed disruptions. Limitations led to strong consumer demand for various exercises to maintain health and fitness during the forecast period. Halt on various industries led to slowdown in the economic growth globally. Limitations on the financial activities led to decline in the market growth for consumer debt. Financial sector was one of the majorly affected sectors during the pandemic. Financial companies provided their services online to their clients where consumers have been facing difficulties in managing their finances. Halt on banking, financial services, insurance (BFSI) industry affected the demand for financial services. Pandemic also affected the quality of investment assets and asset management portfolio for consumers.

LATEST TRENDS

"Implementation of Various Consumer Finance Trends to Inflate Market Progress"

The global consumer credit market growth is anticipated to boost owing to integration and implementation of various trends. Increasing number of borrowers have given rise to growth of trends and integration of various technologies. Trends such as search for lower-risk customers, auto loans, diversification of lending landscape, and forebearance and hyper personalization. Various integration of various technologies such as machine learning, artificial intelligence, and data analytics in consumer finances. Increasing usage of social media channels by consumer credit agencies for market penetration. Such new technologies and various trends in consumer finances are expected to pose an opportunity for market growth during the forecast period.

Consumer Credit Market SEGMENTATION

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• By Type

Based on type; the market is divided into cloud and on-premises.

• By Application

Based on application; the market is divided into individual, enterprise, and others.

DRIVING FACTORS

"Demand from the Financial Industry to Boost Service Demand"

The global consumer credit market growth is anticipated to lift owing to increasing demand from the financial industry. Significant growth in banking, financial services, insurance (BFSI) industry is one the key factors that are attributed to drive the demand for the service. High economic growth in micro, medium, and large enterprises (MSMEs) in developing countries to reduce the credit gap with local consumers is expected to drive the market growth. Consumer banking professionals have been implementing consumer credit data to take decisions regarding analytics and cash flows. It also helps in individual credit cases, capital management of numerous asset portfolio cases, and real-time pricing. Such demand from the financial industry is expected to drive the market growth.   

"Growth in Private Consumption to Develop Market Growth"

Increasing shifts in the demography especially middle class population for private consumption. Growth in the private consumption in the rural population is expected to drive the demand for consumer debt. This is expected to increase the economic growth and financial sector in various countries. Growth in the credit scores of the population is expected to increase private consumption. Increase in the private consumption amongst the middle class population is anticipated to drive the market growth during the forecast period.     

RESTRAINING FACTORS

"Various Disadvantages of the Service to Hinder Market Growth"

There are a number of factors that can push the growth of the consumer credit market. Restraining factors such as various disadvanatges of the service is expected to limit the market growth. Disadvantages such as high interest rates on the consumer credit, charges such as other fees and commissions, and increasing final prices of the financing. Such various disadvantages of the service are anticipated to restrict and limit the consumer credit market growth.   

Consumer Credit Market REGIONAL INSIGHTS

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"Europe to Dominate Market Owing to Growth in the Financial Industry"

Europe holds the largest part of the global consumer credit market share due to growth in the financial indusrty in the region. Increasing banking, financial services and insurance (BFSI) industry in the region is expected to drive the market growth. Growth in the private consumption amongst the population is anticipated to fuel the market share. Presence of majority market players in the region is expected to drive the market growth. Banks and various financial institutions investing in micro, medium, and large enterprises (MSMEs) of the region are anticipated to drive the market share and growth.      

KEY INDUSTRY PLAYERS

"Market Players to Boost Market Growth"

The report delivers information about the list of market players and their operations in the industry. The information is collected and reported with proper research, technological developments, acquisitions, mergers, expanding production lines, and partnerships. Other aspects examined for this market include companies producing and introducing new products, regions they conduct their operations in, automation, technology adoption, generating the most revenue, and making a difference with their products.

List of Market Players Profiled

• BNP Paribas (France)
• Citigroup (U.S.)
• HSBC (U.K.)
• Industrial and Commercial Bank of China (ICBC) (China)
• JPMorgan Chase (U.S.)
• Bank of America (U.S.)
• Barclays (U.K.)
• China Construction Bank (China)
• Deutsche Bank (Germany)
• Mitsubishi UFJ Financial (Japan)
• Wells Fargo (U.S.)

REPORT COVERAGE

This research profiles a report with extensive studies that take into description of the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics changes.