Consumer Finance Market to be Valued USD1839 Billion by 2028
Growing online platforms for consumer
lending, rising credit-based consumption, and increasing affordability of
interest rates are the leading factors driving the global consumer finance
market during the forecast period.
According to TechSci Research
report, “Consumer Finance Market – Global Industry Size,
Share, Trends, Competition, Opportunity, and Forecast, 2018-2028F”, The global consumer finance market is propelled to grow at
a CAGR of around 7.16% in the forecast period owing to the factors such as availability
of affordable rate of interest loans, growing economies, etc.
The worldwide consumer
finance market is growing as a result of the consumer finance companies'
increasing use of online platforms to boost business linkage and
penetration. These channels are helpful for expanding the customers, initiating
media campaigns, and introducing new products and services. Giving credit to
consumers so they can buy products for daily use is a component of consumer
finance. Customers can utilize the consumer financing option, which is provided
by many banks, to make simple monthly payments for a certain amount of time if
they are unable to pay for goods or services in full up front with cash or a
credit card.
Moreover, a wider range of
preferences and financial needs are driving an expansion in the scope and
position of consumer finance. The goal of consumer finance is to make it simple
for consumers to obtain credit. Private and public sector finance companies
offer consumer financing for the purchase of consumer goods.
Browse over 141 market data figures spread through 188 pages and an in-depth TOC on the "Consumer Finance Market".
Another significant factor in
the market's expansion is the consumer finance industry's competitive interest
rates. Even with 0% interest rates, several finance companies are offering
consumer financing. With these businesses, customers can take advantage of interest-free
consumer finance choices. Simple financing options are offered with
interest-free EMIs. Due to the low interest rates, customers in the middle-income
bracket can afford this type of financing, which is driving up demand in the
market.
The global consumer finance
market can be segregated into type, secured consumer finance product type,
unsecured consumer finance product type, regions, and company. The global
consumer finance market is segmented into two broad segments: secured consumer
finance and unsecured consumer finance. Among these, the secured consumer
finance market is the dominating segment in comparison to the unsecured consumer
finance market which has accounted for more than 65% of the global consumer
finance market in 2022. The most popular way to borrow large sums of money is
by secured loans. Due to the driving factors such as lower interest rates,
higher borrowing limits, longer repayment terms, less financial risk to the
lender, etc.
The global secured consumer
finance market has been further segmented into housing loans, auto loans,
mortgage loans, and others. Among which, the auto loan segment is the fastest
growing segment with the CAGR of around 7.50% in the forecast period. The
segment is growing due to factors such as increased collaborations of vehicle
companies with auto finance companies, increasing demand for vehicle demand
among consumers, etc.
On the basis of unsecured
finance product type, the market is segmented into personal loan, credit card,
home improvement loan, education loan and others. Out of which, because of
shifting lifestyles and rising consumer durables spending, the worldwide
consumer finance sector is observing a significant growth. Also, customers are
now more aware of the many options available as a result of the increased usage
of the internet.
In terms of region, the
market is segregated into North America, Europe, Asia-Pacific, South America, and
Middle East & Africa. Among which, Asia-Pacific is anticipated to
register a significant growth during the forecast period. The consumer
financing market in Asia-Pacific has grown quickly. In addition, this demand is
fueled by developing economies in the region, growing urbanization, rising
income levels, competitive loan rates, and a burgeoning middle class.
Key market players in the global
consumer finance market include:
- Citigroup Inc.
- JPMorgan Chase & Co.
- Wells Fargo &
Company
- Bank of America
Corporation
- American Express Company
- HSBC Holdings plc
- Industrial and
Commercial Bank of China
- U.S. Bancorp
- BNP Paribas
- TD Bank, N.A.
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"The market is expanding
as a result of banks' expanding market share and consumers' growing knowledge
of financial goods. Additionally, due the rise in working population worldwide,
there is a rising demand from customers for short-term loans in order to cover
their daily expenses or other urgent needs. These factors are further projected
to contribute to the overall growth of global consumer finance market during
the forecast period.” said Mr. Karan Chechi, Research Director with TechSci
Research, a research based global management consulting firm.
Consumer
Finance Market – Global Industry Size, Share, Trends, Opportunity, and Forecast,
2018-2028F, Segmented By Type (Secured Consumer Finance and Unsecured Consumer
Finance), By Secured Consumer Finance Product Type (Housing Loan, Auto Loan and
Mortgage Loan and Others (Boat loan, Recreational vehicle loan, secured credit
cards, etc.)), By Unsecured
Consumer Finance Product Type (Consumer
Durable Finance, Personal Loan, Credit Card, Home Improvement Loan, Education
Loan and Others (Consumer Durable Loan, Agricultural Loan, Pension Loan, etc.)), By Region”, has evaluated the future growth
potential of global consumer finance market and provides statistics and
information on market structure, size, share, and future growth. The report is
intended to provide cutting-edge market intelligence and help decision-makers
take sound investment decisions. Besides, the report also identifies and
analyzes the emerging trends along with essential drivers, challenges and
opportunities present in consumer finance market globally.
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