IMARC Group's report titled "Consumer Credit Market Report by Credit Type (Revolving Credits, Non-revolving Credits), Service Type (Credit Services, Software and IT Support Services), Issuer (Banks and Finance Companies, Credit Unions, and Others), Payment Method (Direct Deposit, Debit Card, and Others), and Region 2024-2032". offers a comprehensive analysis of the industry, which comprises insights on the global consumer credit market forecast. The global market size reached US$ 11.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 16.8 Billion by 2032, exhibiting a growth rate (CAGR) of 4.1% during 2024-2032.
Factors Affecting the Growth of Consumer Credit Industry:
- Economic Conditions and Income Levels:
The state of the global consumer credit market is heavily swayed by the prevailing economic climate and individual purchasing power. When the economy is robust, characterized by low joblessness and consistent economic expansion, people tend to feel more optimistic about their financial futures. This optimism typically translates to increased borrowing and consumption. In such favorable economic circumstances, financial institutions are more inclined to extend credit, often with appealing interest rates and repayment terms. This, in turn, boosts demand for consumer credit. Conversely, during economic slumps, consumer credit markets often struggle. High joblessness, reduced income, and overall economic uncertainty can prompt consumers to exercise greater caution when taking on debt. In response to increased credit risk, banks and lenders may implement stricter lending criteria, making credit less accessible. The COVID-19 pandemic provides a recent example of how economic conditions can impact consumer credit markets. In the early stages of the pandemic, widespread job losses and income disruptions led to reduced borrowing and a greater emphasis on debt management.
- Rapid Technological Advancements and Digitalization:
The global consumer credit market is also being shaped by the rapid pace of technological innovation and the growing shift towards digital channels. In today's connected era, consumers are demanding faster and more convenient financial services, including borrowing. The emergence of fintech companies has revolutionized the consumer credit space by introducing cutting-edge digital lending solutions and efficient application processes. As a result, consumers now have easier access to credit facilities. The rise of online lenders, peer-to-peer platforms, and mobile apps has simplified the application and approval process. Furthermore, the abundance of big data and advanced analytics has improved credit risk assessment, enabling lenders to extend credit to a broader range of consumers, including those with limited credit profiles. Moreover, digitalization has empowered financial institutions to design personalized loan products and targeted marketing strategies. By analyzing consumer data, they can tailor credit offerings to individual needs and preferences, thereby driving up demand for consumer credit.
- Changing Consumer Behavior and Lifestyle:
Changes in consumer behavior and lifestyle preferences play a key role in driving the global consumer credit market. The way people shop, make payments, and manage their money has undergone significant changes in recent times. The rapid growth of e-commerce has led to an increase in online shopping and the demand for digital payment methods. Consumers are increasingly embracing cashless payment options like credit cards, mobile wallets, and Buy Now, Pay Later services for and flexibility, promoting the use of credit for transactions. Additionally, lifestyle decisions such as pursuing education, buying a house, or starting a business often substantial financial investments, prompting many individuals to turn to credit for funding. The aspiration for a comfortable lifestyle and the growing expenses in certain areas drive people to consider credit solutions to accomplish their objectives.
Leading Companies Operating in the Global Consumer Credit Industry:
- 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
For an in-depth analysis, you can refer sample copy of the report: https://www.imarcgroup.com/consumer-credit-market/requestsample
Consumer Credit Market Report Segmentation:
By Credit Type:
- Revolving Credits
- Non-revolving Credits
Non-revolving dominates the market as it includes long-term loans for items such as automobiles, education, and real estate, which typically involve higher loan amounts and longer repayment periods compared to revolving credit, leading to a larger overall loan volume.
By Service Type:
- Credit Services
- Software and IT Support Services
Credit services hold maximum number of shares due to the widespread demand for borrowing and lending solutions, encompassing credit cards, personal loans, mortgages, and various financial instruments, which cater to diverse consumer and business needs.
By Issuer:
- Banks and Finance Companies
- Credit Unions
- Others
Banks and finance companies represent the largest segment due to their pivotal role in providing a wide range of financial products and services, including loans, credit cards, and mortgages, to both individual consumers and businesses, making them a significant source of credit in the market.
By Payment Method:
- Direct Deposit
- Debit Card
- Others
Debit cards dominate the market due to their widespread acceptance, ease of use, and the fact that they directly access the bank account of a cardholder, making them a popular choice for everyday transactions and purchases.
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
Global Consumer Credit Market Trends:
The growing ties between economies worldwide have created new avenues for consumers to access credit across borders. As people travel, shop, and do business internationally more frequently, there is a growing need for credit solutions that can facilitate these global exchanges. This has led to the emergence of international credit cards and global payment systems, which are fuelling the consumer credit market. Furthermore, emerging markets, with their rapidly growing middle-class populations, offer significant growth potential for the consumer credit industry. As more people in these regions gain access to banking services and experience increasing incomes, their demand for credit products, such as personal loans and credit cards, continues to rise, driving the global consumer credit market forward. Moreover, the regulatory landscape and government policies have a significant impact on the consumer credit market, with strict regulations aimed at protecting consumers and promoting responsible lending practices influencing the availability and terms of consumer credit.
Note: If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.
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