DUBLIN–(BUSINESS WIRE)–The “United States Alternative Lending Market Business and Investment Opportunities Databook – 75+ KPIs on Alternative Lending Market Size, By End User, By Finance Model, By Payment Instrument, By Loan Type and Demographics – Q2 2023 Update” report has been added to ResearchAndMarkets.com’s offering.
The United States alternative lending market is expected to grow by 16.3% on an annual basis to reach US$ 254.23 billion in 2023. The medium to long term growth story of alternative lending in United States remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 8.7% during 2023-2027. The alternative lending market in the U.S. will increase from US$ 218.61 billion in 2022 to reach US$ 354.49 billion by 2027.
Americans are borrowing more to cope with rising inflation and soaring cost of living. With the Federal Reserve hiking rates consistently over the last few quarters, traditional borrowing has become significantly expensive compared to the time during the pandemic outbreak. The alternative lending segment is expected to benefit from this, as consumers look for more affordable and conveniently available short-term loans.
Amid the growing demand, which is poised to accelerate further in 2023, firms are expected to raise capital from venture capital and private equity firms to offer credit to underbanked customers in the United States. Furthermore, domestic players are also projected to expand their geographical presence, as the alternative lending market is poised for accelerated growth in the global market.
Firms are raising capital to offer credit services to more underbanked and unbanked consumers in the United States
With consumers struggling to cover their bills as pandemic savings run out, the demand for credit has been on the surge amid the current macroeconomic environment. To serve the underbanked and unbanked section of the community, who do not have easy access to credit cards and traditional borrowing, alternative lending providers are raising capital rounds.
In addition to alternative lenders, infrastructure providers are also raising funding rounds to accelerate their expansion.
- In April 2023, Presta, the digital lending infrastructure provider in the United States, announced that the firm had raised US$3.3 million. The capital round was backed by Distributed Ventures and included participation from Zeal Capital Partners, The Fund, Matchstick Ventures, Jumpstart Ventures, and Tech Stars. The software solution offered by Presta enables lenders to efficiently manage their lending processes, including underwriting, closing, servicing, and reporting.
As the market continues to record accelerated growth in the United States, the publisher expects more venture capital and private equity funding to enter the fast-growing fintech sector. This will further drive the competitive landscape in the United States’ alternative lending industry.
Domestic lending automation platforms are expanding their global presence to drive accelerated growth
The demand for credit is expected to grow significantly in the global market due to rising inflation and the interest rate environment. This, in turn, will accelerate the number of players entering the alternative lending market in 2023. To offer infrastructure to such players, United States-based lending automation platforms are expanding their global presence in the European region, where inflation has reached multi-year highs.
Prospective homeowners are turning to alternative financing options in the United States
Rising homeownership costs, coupled with the growing difficulties in accessing mortgages through conventional channels, have resulted in millions of Americans turning to alternative financing options. With interest rates rising consistently, coupled with recessionary fears, more and more Americans are expected to flock to alternative lenders in 2023. This, therefore, will keep aiding the growth of the alternative lending market in the United States from the short to medium-term perspective.
Report Scope
This report provides in-depth data-centric analysis of Alternative Lending industry in United States through 127 tables and 150 charts. Below is a summary of key market segments:
- United States Economic Indicators
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United States Alternative Lending Market Size and Forecast
- by End User
- by Finance Models
- by Payment Instrument – Transaction Value, Volume and Average Value
- by Payment Instrument to Model
- Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Consumer Lending
- Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Business Lending
- Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Property Lending
- Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Consumer Lending
- Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Business Lending
- Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Property Lending
- Alternative Lending Market Size and Forecast by Payment Instrument to Invoice Trading
- Alternative Lending Market Size and Forecast by Payment Instrument to Debt Based Securities
- Alternative Lending Market Size and Forecast by Payment Instrument to Equity Based Crowd Funding
- Alternative Lending Market Size and Forecast by Payment Instrument to Real Estate Crowd funding
- United States Alternative Lending Market Size and Forecast by Loan Types
- United States Alternative Lending Analysis by Consumer Attitude and Behaviour
This report offers a comprehensive insight into the alternative lending market in United States, covering the following key areas:
- Comprehensive Market Intelligence: This report offers a thorough scrutiny of the alternative lending market in United States, providing a deep dive into its size, growth potential, emerging trends, and key industry leaders. Investors and entrepreneurs can identify potential areas for market expansion, based on the payment instruments, finance models, and loan types covered in the report.
- Economic Indicators: Access to United States’ economic indicators, including GDP, unbanked population, unemployment rate, and loan default rate, to empower your business with crucial data for market analysis and strategic planning.
- Industry Attractiveness Analysis: In-depth trend analyses for transaction value, average value, and transaction volume within the United States alternative lending sector. This information aids in assessing the industry’s appeal and potential for growth.
- Strategic Segmentation Analysis: The report presents an extensive analysis of market segments based on financial models, payment methods and end-users.
- Growth Projections: The report contains future growth projections for the United States alternative lending market, classified by end-user, financial model, and payment instrument. These projections offer insights into areas with growth potential within various market segments, aiding your company in strategy alignment and informed decision-making.
- Loan Type Analysis: A thorough examination of loan types, including B2C Loans and B2B Loans, offering valuable market insights.
- Consumer Attitude and Behaviour Analysis: Get a closer look at consumer behaviour and attitude, segmented by age, income, and gender, which can aid in developing targeted marketing and lending strategies.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 164 |
| Forecast Period | 2023 – 2027 |
| Estimated Market Value (USD) in 2023 | $254.2 Billion |
| Forecasted Market Value (USD) by 2027 | $354.5 Billion |
| Compound Annual Growth Rate | 8.7% |
| Regions Covered | United States |
For more information about this report visit https://www.researchandmarkets.com/r/4bkboe
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