European fintech lending industry to hit USD 9.6 billion in 2020

Wednesday 4 March 2020 10:53 CET | News

The European fintech, or the alternative loans industry, is expected to hit a USD 9.6 billion transaction value in 2020, growing by 10% year-on-year, according to data gathered by

In 2017, the European fintech lending market hit USD 6.3 billion value, revealed the Statista Alternative Lending Market Outlook. By the end of 2018, the market value increased by 20% and reached USD 7.5 billion worth. The rising trend continued in the next twelve months with the entire market reaching USD 8.7 billion value.

The statistics indicate the European fintech lending industry is expected to show an annual growth rate of 3.0% between 2020 and 2023, resulting in a USD 10.5 billion transaction value in the next three years.

The market's largest segment is crowdlending or peer-to-peer business lending. In 2017, European peer-to-peer loans in the business sector reached USD 3.6 billion worth. Over the last three years, the market value of the crowdlending loans increased by more than 75% and hit USD 6.5 billion transaction value in 2020. Statistics show this amount will grow to nearly USD 7.2 billion in the next three years.

Consumer peer-to-peer loans are forecast to edge up to USD 3.1 billion value in 2020, twice less than business lending. Although peer-to-peer business loans represent the leading market segment, the statistics indicate a much higher number of consumer peer-to-peer loans in Europe. In 2017, there were more than 911,000 successfully funded alternative loans in the consumer segment.

Business peer-to-peer loans reached over 63,000, or 14 times less compared to consumer loans. In the last three years, consumer and business alternative loans rose to 1 million and 75,900, respectively. The average funding per loan in the crowdlending segment is expected to reach USD 86,185 in 2020. Statista survey indicates the total number of European fintech loans will amount to over 1.3 million by 2023.

Compared by geography, the UK represents the largest European fintech lending market, and the third largest fintech lending market globally. According to statistics, the total value of UK fintech loans is expected to peak at a value of USD 4.8 billion in 2020.

Switzerland ranked as the second-largest market in Europe with USD 1.4 billion worth transactions in 2020, growing by remarkable 27.4% year-on-year. With a USD 796 million transaction value in 2020, Italy ranked as the third largest fintech lending market in Europe.

However, besides Switzerland, Denmark and Spain are expected to see the highest growth rates in the following years, rising by 23.7% and 22.9% respectively year-on-year.

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Keywords: European fintech, loans, lending, peer to peer loans, payments , banking, lending industry, study
Categories: Banking & Fintech
Countries: Europe
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Banking & Fintech

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