DUBLIN--(BUSINESS WIRE)--The "Consumer Credit Market Opportunities and Strategies to 2034" report has been added to ResearchAndMarkets.com's offering.
This report describes and explains the consumer credit market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.
The global consumer credit market reached a value of nearly $11.73 billion in 2024, having grown at a compound annual growth rate (CAGR) of 4.12% since 2019. The market is expected to grow from $11.73 billion in 2024 to $15.98 billion in 2029 at a rate of 6.37%. The market is then expected to grow at a CAGR of 6.03% from 2029 and reach $21.42 billion in 2034.
Growth in the historic period resulted from the increasing cybersecurity threats, growing number of small businesses, decentralized finance (DeFi) expansion and favorable government initiatives. Factors that negatively affected growth in the historic period were shortage of skilled expertise and limited consumer awareness.
Going forward, rising digitalization, rising cross-border payments, increasing demand for personalized financial services and rising use of cryptocurrency will drive the growth. Factor that could hinder the growth of the consumer credit market in the future include regulatory uncertainty and legacy system and integration complexity.
North America was the largest region in the consumer credit market, accounting for 33.94% or $3.98 billion of the total in 2024. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the consumer credit market will be Asia-Pacific and Africa where growth will be at CAGRs of 7.64% and 7.12% respectively. These will be followed by Middle East and South America where the markets are expected to grow at CAGRs of 6.11% and 6.07% respectively.
The global consumer credit markets is fairly fragmented, with large number of players operating in the market. The top 10 competitors in the market made up 14.69% of the total market in 2023. JPMorgan Chase & Co. was the largest competitor with a 2.38% share of the market, followed by Bank of America Corporation. with 2.37%, Wells Fargo & Company with 2.14%, Citigroup Inc. with 1.30%, American Express with 1.25%, Capital One Financial Corporation with 1.08%, Synchrony Financial with 1.07%, HSBC Holdings plc with 1.06%, Barclays plc with 1.03% and Deutsche Bank AG with 1.00%.
The consumer credit market is segmented by service type into credit services and software and IT support services. The credit services market was the largest segment of the consumer credit market segmented by service type, accounting for 90.71% or $10.64 billion of the total in 2024. Going forward, the software and IT support services segment is expected to be the fastest growing segment in the consumer credit market segmented by service type, at a CAGR of 13.49% during 2024-2029.
The consumer credit market is segmented by credit type into revolving credits and non-revolving credits. The revolving credits market was the largest segment of the consumer credit market segmented by credit type, accounting for 63.08% or $7.4 billion of the total in 2024. Going forward, the non-revolving credits segment is expected to be the fastest growing segment in the consumer credit market segmented by credit type, at a CAGR of 6.96% during 2024-2029.
The consumer credit market is segmented by issuer into banks and finance companies, credit unions and other issuers. The banks and finance companies market was the largest segment of the consumer credit market segmented by issuer, accounting for 77.02% or $9.04 billion of the total in 2024. Going forward, the other issuers segment is expected to be the fastest growing segment in the consumer credit market segmented by issuer, at a CAGR of 8.32% during 2024-2029.
The consumer credit market is segmented by payment method into direct deposit, debit card and other payment methods. The debit card market was the largest segment of the consumer credit market segmented by payment method, accounting for 55.00% or $6.45 billion of the total in 2024. Going forward, the debit card segment is expected to be the fastest growing segment in the consumer credit market segmented by payment method, at a CAGR of 7.09% during 2024-2029.
The consumer credit market is segmented by application into individual, enterprise and other applications. The individual market was the largest segment of the consumer credit market segmented by application, accounting for 70.00% or $8.21 billion of the total in 2024. Going forward, the individual segment is expected to be the fastest growing segment in the consumer credit market segmented by application, at a CAGR of 6.88% during 2024-2029.
The top opportunities in the consumer credit market segmented by service type will arise in the credit services segment, which will gain $3.28 billion of global annual sales by 2029. The top opportunities in the consumer credit market segmented by credit type will arise in the non-revolving credits segment, which will gain $2.95 billion of global annual sales by 2029. The top opportunities in the consumer credit market segmented by issuer will arise in the banks and finance companies segment, which will gain $3.23 billion of global annual sales by 2029. The top opportunities in the consumer credit market segmented by payment method will arise in the debit card segment, which will gain $2.63 billion of global annual sales by 2029. The top opportunities in the consumer credit market segmented by application will arise in the individual segment, which will gain $3.24 billion of global annual sales by 2029. The consumer credit market size will gain the most in the USA at $1.1 billion.
Market trend-based strategies for the consumer credit market include focus on revolutionizing the consumer credit landscape by offering innovative products that cater to diverse consumer needs, focus on utilizing alternative data sources such as utility payments, rental histories, and online transaction records to assess creditworthiness, focus on buy-now-pay-later (BNPL) model, focus on transforming risk assessment in consumer lending by enabling more precise credit evaluations and fraud detection, focus on leveraging micro-loans and mobile credit platforms to enhance financial inclusion, particularly in underserved regions and focus on implementing policies and incentives to boost consumer credit and drive economic activity.
Player-adopted strategies in the consumer credit market include focus on business expansion through new launches and focus on expanding diagnostics segment through strategic partnerships.
To take advantage of the opportunities, the analyst recommends the consumer credit to focus on digital transformation and personalization, focus on leveraging alternative data for credit assessment, focus on expanding buy-now-pay-later options, focus on leveraging AI and ML for enhanced risk assessment and customer experience, focus on expanding micro-loan and mobile credit platforms, focus on expanding credit access to stimulate growth, expand in emerging markets, continue to focus on developed markets, focus on expanding distribution channels for consumer credit companies, focus on optimizing pricing strategies to enhance competitiveness, focus on digital marketing and targeted campaigns, focus on partnerships with fintech companies and focus on targeting the right consumer segments.
Major Market Trends
- Digital Transformation and Fintech Integration
- Personalized Lending Through Alternative Data
- Expansion of Buy-Now-Pay-Later (BNPL) Services
- Integration of Artificial Intelligence in Risk Assessment
- Focus on Financial Inclusion
- Government Initiatives to Boost Spending
Key Mergers and Acquisitions
- Affirm's $4 Billion Investment Deal with Sixth Street
- Capital One's Proposed Acquisition of Discover Financial Services
- Axis Bank's Acquisition of Citibank India's Consumer Business
- Ally Financial's Acquisition of Fair Square Financial
- Recent Developments in the Consumer Credit Market
- Klarna Partners with OnePay to Offer Installment Loans at Walmart
- Affirm Holdings Partnership with Apple
- PhonePe and Groww Expansion into Consumer Lending
Markets Covered:
- Service Type: Credit Services; Software
- Credit Type: Revolving Credits; Non-Revolving Credits
- Issuer Type: Banks and Finance Companies; Credit Unions; Other Issuers
- Payment Method: Direct Deposit; Debit Card; Other Payment Methods
- Application: Individual; Enterprise; Other Applications
Key Companies Profiled:
- JPMorgan Chase & Co
- Bank of America Corporation
- Wells Fargo & Company
- Citigroup Inc
- American Express
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 331 |
| Forecast Period | 2024 - 2034 |
| Estimated Market Value (USD) in 2024 | $11.73 Billion |
| Forecasted Market Value (USD) by 2034 | $21.42 Billion |
| Compound Annual Growth Rate | 6.2% |
| Regions Covered | Global |
Companies Featured
- JPMorgan Chase & Co.
- Bank of America Corporation
- Wells Fargo & Company
- Citigroup Inc.
- American Express
- Capital One Financial Corporation
- Synchrony Financial
- HSBC Holdings plc
- Barclays plc
- Deutsche Bank AG
- Commonwealth Bank of Australia (CBA)
- Westpac Banking Corporation
- National Australia Bank (NAB)
- Australia and New Zealand Banking Group (ANZ)
- Industrial and Commercial Bank of China (ICBC)
- China Construction Bank (CCB)
- Agricultural Bank of China (ABC)
- Bank of China (BOC)
- State Bank of India (SBI)
- HDFC Bank
- ICICI Bank
- Axis Bank
- Bank Central Asia (BCA)
- Bank Rakyat Indonesia (BRI)
- Bank Mandiri
- Bank Negara Indonesia (BNI)
- Mizuho Bank
- MUFG Bank
- Sumitomo Mitsui Banking Corporation (SMBC)
- Japan Post Bank
- DBS Bank
- Oversea-Chinese Banking Corporation (OCBC)
- United Overseas Bank (UOB)
- Kookmin Bank (KB)
- Shinhan Bank
- Lloyds Bank
- Chase UK
- Commerzbank
- Santander Consumer Bank
- BNP Paribas
- Credit Agricole
- Societe Generale
- UniCredit
- Intesa Sanpaolo
- BNL
- Banco Santander
- BBVA
- CaixaBank
- Ceska sporitelna
- mBank
- Banca Comerciala Romana (BCR)
- UniCredit Bank Romania
- Russian Standard Bank
- Discover
- Royal Bank of Canada (RBC)
- Toronto-Dominion Bank (TD)
- Scotiabank
- Bank of Montreal (BMO)
- Canadian Imperial Bank of Commerce (CIBC)
- BBVA
- Banorte
- Santander
- Citibanamex
- Uala
- Naranja X
- Nubank
- Banco Bradesco
- Banco Santander Chile
- Banco Falabella
- Excel Credit
- Banco de Credito del Peru (BCP)
- Aafaq Islamic Finance
- Amlak Finance
- Deem Finance
- Finance House
- Mawarid Finance
- Reem Finance
- Tabby
- Tamara
- Postpay
- MNT-Halan
- Capitec Bank
- African Bank
- FNB (First National Bank, South Africa)
- JUMO (Pan-Africa)
- Kenya Commercial Bank (KCB, Kenya)
For more information about this report visit https://www.researchandmarkets.com/r/n2yic
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