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% in the forecast period owing to the factors such as availability of affordable rate of interest loans, growing economies, etc.
The Important Aspects of the Consumer Finance Market
The worldwide consumer finance market is growing as a result of 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 upfront 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 types, secured consumer finance product types, unsecured consumer finance product types, regions, and companies. 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 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, the 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 these, the auto loan segment is the fastest-growing segment with a 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 loans, credit cards, home improvement loans, education loans, and others. Which, because of shifting lifestyles and rising consumer durables spending, the worldwide consumer finance sector is observing 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 these, Asia-Pacific is anticipated to register 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 to the rise in the 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 the 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 the consumer finance market globally.
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