Summary:
- The global consumer credit market size reached USD 11.5 Billion in 2023.
- The market is expected to reach USD 16.8 Billion by 2032, exhibiting a growth rate (CAGR) of 4.1% during 2024-2032.
- North America leads the market, accounting for the largest consumer credit market share.
- Non-revolving credits account for the majority of the market share in the credit type segment as they do not replenish once paid off.
- Credit services hold the largest share in the consumer credit industry.
- Banks and finance companies remain a dominant segment in the market, catering to a various need such as safe storage of money and access to credit.
- Debit cards represent the leading payment method segment.
- The rising economic growth is a primary driver of the consumer credit market.
- Technological advancements and rise of online lending platforms are reshaping the consumer credit market.
Industry Trends and Drivers:
- Economic recovery:
The recovery of the economy plays a crucial role in driving the consumer credit market. As job growth continues and unemployment rates decline, consumers gain more confidence in their financial stability. This economic resurgence encourages spending, prompting individuals to seek credit for major purchases, such as homes, vehicles, and appliances. Furthermore, higher disposable incomes allow consumers to manage debt more effectively, leading to increased borrowing. Financial institutions are also more willing to extend credit during periods of economic growth, resulting in more competitive interest rates and favorable lending conditions. This combination of consumer confidence and lender readiness to issue credit creates a robust environment for the expansion of the consumer credit market.
- Changing consumer behavior:
Shifts in consumer behavior significantly impact the consumer credit market. Today’s consumers are increasingly relying on credit to manage cash flow and make purchases, driven by a desire for immediate gratification. The growing trend of “buy now, pay later” services has also gained traction, allowing consumers to finance smaller purchases without incurring traditional credit card debt. Additionally, younger generations, particularly millennials and Gen Z, tend to prioritize experiences over material possessions, leading to a higher propensity for borrowing to fund travel, entertainment, and other lifestyle expenses. This evolving mindset fosters a culture of credit usage, contributing to the expansion of the consumer credit market as financial institutions adapt their offerings to meet these changing preferences.
- Technological advancements:
Technological innovations have transformed the consumer credit landscape, enhancing accessibility and convenience for borrowers. The rise of online lending platforms and mobile applications has made it easier for consumers to apply for credit, compare rates, and receive approvals in real-time. These digital solutions often streamline the application process, reducing paperwork and waiting times, which appeals to tech-savvy consumers. Additionally, advancements in data analytics enable lenders to assess creditworthiness more accurately, allowing them to extend credit to a broader range of applicants, including those with limited credit histories. As technology continues to evolve, the consumer credit market is expected to benefit from increased efficiency and accessibility, further driving growth.
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Consumer Credit Market Report Segmentation:
Breakup By Credit Type:
- Revolving Credits
- Non-revolving Credits
Non-revolving credits account for the majority of shares as they do not replenish once paid off.
Breakup By Service Type:
- Credit Services
- Software and IT Support Services
Credit services dominate the market due to the increasing number of people seeking loans.
Breakup By Issuer:
- Banks and Finance Companies
- Credit Unions
- Others
Banks and finance companies represents the majority of shares as they provide various financial services such as borrowing, lending, and investing.
Breakup By Payment Method:
- Direct Deposit
- Debit Card
- Others
Debit cards hold the majority of shares as various banks are providing easy EMI services on debit cards.
Market Breakup by Region:
- North America (United States, Canada)
- Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
- Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
- Latin America (Brazil, Mexico, Others)
- Middle East and Africa
Top Consumer Credit Market Leaders:
- Bank of America
- Barclays
- BNP Paribas
- China Construction Bank
- Citigroup
- Deutsche Bank
- HSBC
- Industrial and Commercial Bank of China (ICBC)
- JPMorgan Chase
- Mitsubishi UFJ Financial
- Wells Fargo
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