Consumer Credit Market Overview

Customers can borrow money or accrue debt and postpone paying it back over time thanks to consumer credit systems. When a customer obtains credit, they can purchase products or assets without needing to pay cash at the time of purchase. In financial services, consumer credit refers to personal debt incurred via the purchase of products and services. 

In 2023, the size of the worldwide consumer credit market was estimated to be USD 12.53 billion. It is projected to increase at a CAGR of 4.14% over the forecast period (2024–2032), reaching USD 18.05 billion by 2032.

The worldwide consumer credit market has been expanding recently due to the rising demand for loans from people and small enterprises as well as the many advantages offered by consumer lenders. Credit demand is impacted by the growth of e-commerce, the sharing economy, and new payment options. Furthermore, younger generations frequently have greater tolerance for alternative lending models and digital credit products.

Competitive Landscape

Some of the prominent players operating in the Consumer Credit Market are 

  1. Experian Information Solutions, Inc.
  2. TransUnion LLC
  3. Equifax, Inc.
  4. Barclay
  5. BNP Paribas
  6. China Construction Bank
  7. Citigroup
  8. Deutsche Bank
  9. HSBC
  10. Industrial and Commercial Bank of China (ICBC)
  11. JPMorgan Chase
  12. Mitsubishi UFJ Financial
  13. Wells Fargo

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Latest trends in the Consumer Credit Market report

  • Modifying the Attitude of Consumers Because of the impact that high interest rates and inflation have placed on affordability, consumers want to borrow less and pay off debt more quickly.
    Customers are evaluating more alternative lending options than just traditional personal loans, increasing competition for personal loan customers.
  • The Dynamics of the Lending Market because of the heightened economic risk, lenders are imposing stricter creditworthiness requirements and tightening credit standards. Lenders have the potential to boost earnings from high interest rates even in the face of decreased loan demand, which is why they are concentrating on speeding credit disbursement as a competitive advantage.
  • Modifications to Regulations: Lenders are being forced to improve compliance and connect their operations and product portfolios with responsible lending standards using new regulatory mandates such as the EU Consumer Credit Directive and the UK Consumer Duty Act.
  • Trends in Sustainability: As customers and authorities focus more emphasis on environmentally friendly lending products and sustainable finance, green lending is on the rise.
  • Technological Progress: To obtain better consumer data and provide more individualized credit possibilities, lenders are utilizing account information services and open banking technologies.

Inflation plays a significant role in shaping consumer credit behaviors in the following ways:

  1. Higher Debt and Borrowing: Consumers are compelled to utilize credit cards and take out loans to pay for necessities because their income isn't keeping up with inflation. According to research, as of June 2023, 30% of consumers owed 30% more than they did at the start of the year.
  2. Tighter Credit Requirements: Because of the heightened economic risk that rising inflation poses, lenders are applying stricter creditworthiness requirements and tightening credit standards. High inflation reduces buying power and makes it less likely that people will have extra money after meeting their fundamental needs to spend on non-essential items.
  3. Delayed Large Purchases: Increased interest rates significantly increase the cost of many consumer purchases, particularly those of luxury goods like jewelry or cars that are made on credit, discouraging such outlays.
    After peaking in 2022, the percentage of Americans deferring major purchases decreased from 56% to 42%.
  4. Decreased Trust from Customers: Households are immediately impacted financially by inflation, and it can also have an indirect effect on credit health through things like high credit utilization rates and late payments.
    When inflation peaked in June 2022, Deloitte's financial well-being index, which typically moves inversely with inflation, reached a four-year low.

Global Consumer Credit Market: Segmentation

As a result of the Consumer Credit Market segmentation, the market is divided into sub-segments based on product type, application, as well as regional and country-level forecasts.

  • By Type
    • Cloud
    • On-Premise
  • By Application
    • Personal Loan
    • Vehicle Loan
    • Student Loan

The report forecasts revenue growth at all geographic levels and provides an in-depth analysis of the latest industry trends and development patterns from 2022 to 2030 in each of the segments and sub-segments. Some of the major geographies included in the market are given below:

  • North America (U.S., Canada)
  • Europe (U.K., Germany, France, Italy)
  • Asia Pacific (China, India, Japan, Singapore, Malaysia)
  • Latin America (Brazil, Mexico)
  • Middle East & Africa

Regional Analysis

  • North America
    With the biggest proportion of the worldwide consumer credit market in 2022, North America leads the way.
    The region's early embrace of digital payment methods, extensive consumer awareness, and strong financial infrastructure are all factors contributing to its top position.
    As of 2022, the United States possessed credit card balances of $1.071 trillion, a 14.7% rise from 2021.
    Over 70% of credit cards sold in the United States are issued by Visa and Mastercard together.
  • Asia-Pacific
    Throughout the projection period, Asia Pacific is anticipated to experience the greatest growth in consumer credit.
    The development of the internet, the rising use of smartphones, and the rise in small-business and consumer loan demand are all factors contributing to growth.

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Key Highlights

  • To explain the Consumer Credit Market the following: introduction, product type and application, market overview, market analysis by countries, market opportunities, market risk, and market driving forces
  • The purpose of this study is to examine the manufacturers of the Consumer Credit Market, including profile, primary business, news, sales and price, revenue, and market share.
  • To provide an overview of the competitive landscape among the leading manufacturers in the world, including sales, revenue, and market share of Consumer Credit Market percent
  • In order to illustrate the market subdivided by kind and application, complete with sales, price, revenue, market share, and growth rate broken down by type and application
  • To conduct an analysis of the main regions by manufacturers, categories, and applications, covering regions such as North America, Europe, Asia Pacific, the Middle East, and South America, with sales, revenue, and market share segmented by manufacturers, types, and applications.
  • To conduct an investigation into the production costs, essential raw materials, and production method, etc.

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