According to the consumer credit market insights, market research analysts at Technavio predict that the global consumer credit market will grow steadily during the next four years and post a CAGR of almost 5% by 2020. Benefits such as quicker access to credit are identified to be one of the primary consumer credit market growth factors. Banking institutions mainly provide credit to marginalized borrowers such as SMEs that lack high-quality collateral and long credit histories as they are constantly associated with higher risks and are unable to obtain funds from other financial institutions. To reduce the huge funding and credit gap between large firms, traditional financial institutions have started focusing on addressing the specific needs of potential clients. Small and medium enterprises are in need of credits mainly during their start-up and growth stages as they find it difficult to raise finance due to the unavailability of data about their performance histories. Since consumer banking solutions provide quick access to working capital and help enterprises mitigate credit risks, there will be an exponential increase in the demand for consumer credits in the next four years.
The increasing use of social media channels by consumer credit agencies for better market penetration and customer connectivity will be one of the major factors that will gain traction in this market in the next few years. To enhance their customer base and create awareness about new products and services, consumer banking institutions have to broaden their communication and marketing channels and will soon start using social media platforms to market their products. The use of social media will help financial institutions overcome geographical boundaries and can also be used to launch media campaigns and new product launches. A few financial institutions offering consumer credit services have already started using social media as a platform to collect customer feedback, resolve queries in real-time, provide product updates, and also to drive insight generation and fraud investigations.
Competitive landscape and key vendors
This global market is characterized by the presence of a considerable number of financial institutions such as banks and alternative lenders. The continuous increase in the adoption of cloud services, the prominence of the barcode, and the availability of Bluetooth-based wallet options for customers will increase the level of diversity among different credit options, intensifying the market’s competitive environment. Moreover, the use of social networking platforms to allow customers search, share, and validate alternative resources for online financial solutions, will also intensify the level of competition in the market. A few credit companies have started adopting the trend of collaborating with alternative lenders, which will help them enhance their global presence and improve market shares.
The leading vendors in the market are
Industrial and Commercial Bank of China (ICBC)
The other prominent vendors in the market are Bank of America, Barclays, China Construction Bank, Deutsche Bank, Mitsubishi UFJ Financial, and Wells Fargo.
Geographical segmentation and analysis of the consumer credit market
Based on the consumer credit market statistics, the Americas will be the major revenue contributor to the consumer credit market throughout the next four years. Customers in this region have limited access to credit finance. The increase in borrowing power has expanded the scope for consumer and mortgage loans, which mandates the implementation of appropriate finance mechanisms. As a result, financial institutions will start providing customized solutions as per the requirements of their customers. The expected increase in the number of partnerships and acquisitions and the availability of several financial technology start-ups that lend to a huge number of individuals and small businesses with the help of big data analytics will bolster the market’s growth prospects in this region.
Key questions answered in the report include
What will the market size and the growth rate be in 2020?
What are the key factors driving the global consumer credit market?
What are the key market trends impacting the growth of the global consumer credit market?
What are the challenges to market growth?
Who are the key vendors in the global consumer credit market?
What are the market opportunities and threats faced by the vendors in the global consumer credit market?
Trending factors influencing the market shares of the Americas, APAC, and EMEA.
What are the key outcomes of the five forces analysis of the global consumer credit market?
Technavio also offers customization on reports based on specific client requirement.