Skip to main content

New Entrants Grow The Global Consumer Finance Market

Staff Writer
Oct 04, 2021

Because consumers' lives and financial decisions are constantly changing, so is the global consumer financial market.

KEY TAKEAWAYS
  • Global consumer finance is expected to grow over a compound annual growth rate (CAGR) of 5% in value terms to reach $1306.1 billion by 2026. 
  • Consumer finance refers to decisions that households make over time about saving, borrowing, and investing. Meanwhile, the global consumer finance market is witnessing consistent growth because of increasing disposable incomes and high economic growth.
  • The availability of various loans, such as home loans, car loans, and education loans from a variety of public and private banks or financial institutions, has boosted the global consumer finance market, as well as the quick processing of loan requests. 
  • The secure consumer finance market is the dominating segment compared to the unsecure consumer finance market, accounting for more than 65% of global consumer finance market in 2020.

The Global Consumer Finance Market report has been added to ResearchandMarkets.com’s offerings, including secured and unsecured finance types, organized by product type, region, competition, as well as forecast and opportunities. Global consumer finance is expected to grow over a compound annual growth rate (CAGR) of 5% in value terms to reach $1306.1 billion by 2026. 

Consumer finance refers to decisions that households make over time about saving, borrowing, and investing. Meanwhile, the global consumer finance market is witnessing consistent growth because of increasing disposable incomes and high economic growth. New entrants are also rapidly expanding the market, including peer-to-peer lenders and pure digital players. 

Because consumers' lives and financial decisions are constantly changing, so is the global consumer financial market. The continuous rise in population and economic development, consumer finance production has experienced spectacular growth. 

Additionally, the availability of various loans, such as home loans, car loans, and education loans from a variety of public and private banks or financial institutions, has boosted the global consumer finance market, as well as the quick processing of loan requests. 

The global consumer finance market is segmented into two main categories: secured consumer finance and unsecured consumer finance. The secure consumer finance market is the dominating segment compared to the unsecure consumer finance market, accounting for more than 65% of global consumer finance market in 2020. This means the most popular way to borrow large sums of money is through secured loans, due to factors such as lower interest rates, higher borrowing limits, longer repayment terms, less financial risk to the lender, and more. 

In 2020, housing loans accounted for the majority of the market share in the global consumer finance market primarily because of low interest rates, high demand, and affordable real estate. However, auto loans are expected to grow throughout the forecast period. 

The unsecured consumer finance product types are divided into consumer durable finance, personal loan, credit card, home improvement loan, education loan and others. The global consumer finance industry is profiting as a result of these changing lifestyles and the increasing amount spent on consumer durables. 

ResearchandMarkets.com listed some of the leading players in the global consumer finance market that are developing advanced technologies and launching new services to stay competitive. These companies include:

  • JPMorgan Chase & Co.
  • Citigroup, Inc.
  • Wells Fargo & Company
  • BNP Paribas
  • American Express Company
  • HSBC Holdings plc
  • TD Bank, N.A.
  • Berkshire Hathaway Inc.
  • Bank of America Corporation
  • Industrial and Commercial Bank of China

 

About the author
Staff Writer
Katie Jensen is a staff writer at NMP.
Published
Oct 04, 2021
Home Price Appreciation Decelerates In Latest Indices

Case-Shiller and FHFA analytics point to price gains slowing

Jun 25, 2024
The Trillion-Dollar Race For Millennial Market Share

Millennials are cynical on homebuying, according to an Alkami report.

Jun 24, 2024
Average Buyers Must Put Down Nearly $128,000 To Afford Mortgage Payments

Depending on the region, some buyers need six-digit down payments while others need none.

Jun 24, 2024
Existing-Home Sales Fall 2.8% Annually In May

The year-over-year decline was most pronounced in the South and Northeast, where sales fell 5.1% and 4% respectively.

Jun 24, 2024
High Rates Dampen Builder Confidence

Builder confidence in the market for newly built single-family homes was 43 in June, down two points from May.

Jun 20, 2024
Mortgage Rates Fell For The Third Straight Week

The 30-year fixed-rate mortgage averaged 6.87%.

Jun 20, 2024