Australia Alternative Lending Business Databook 2023: 75+ KPIs on Market Size, By End User, By Finance Model, By Payment Instrument, By Loan Type and Demographics 2018-2027
DUBLIN, Nov. 20, 2023 /PRNewswire/ -- The "Australia Alternative Lending Market Business and Investment Opportunities Databook - 75+ KPIs on Alternative Lending Market Size, By End User, By Finance Model, By Payment Instrument, By Loan Type and Demographics - Q2 2023 Update" report has been added to ResearchAndMarkets.com's offering.
According to the publisher, the alternative lending market in the country is expected to grow by 36.9% on an annual basis to reach US$ 5.49 billion in 2023.
Medium to long term growth story of alternative lending in Australia remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 20.3% during 2023-2027. The alternative lending market in the country will increase from US$ 4.01 billion in 2022 to reach US$ 11.50 billion by 2027.
As rising interest rates drive borrowers away from the big banks, the alternative lending segment is poised to record accelerated growth in Australia in 2023. Six in ten borrowers are considering online lenders to access low-cost loans in Australia. Cheaper interest rates, lower fees, convenience, and faster loan approvals are among the factors aiding the popularity of alternative lenders.
The shift towards alternative lenders has resulted in higher loan disbursals for providers and the trend is projected to further continue in 2023. In addition to the domestic market, alternative lenders are also seeking to expand their footprint in the global region. This is expected to lead to more strategic collaborations and mergers and acquisition deals from the short to medium-term perspective.
Firms are experiencing high growth in customer acquisition amid high demand for credit in Australia
With access to credit from banking institutions becoming more expensive and difficult, more businesses and consumers are turning to alternative lending providers in Australia. This is driving the uptake in new client onboarding for providers in the region.
In February 2023, Opti Pay, the Australian financing firm announced that the firm had issued over A$25 million in new facilities since January 2023. This represents a growth of 10x for the financing firm in Australia. The growth has been largely driven by rising interest rates and the soaring cost of living, as access to traditional credit becomes difficult for most businesses.
The firm offers invoice financing, thereby enabling businesses to improve their cash flow. The majority of the new customers for the firm are coming from sectors such as agriculture, mining services, transport and logistics, and manufacturing. The need for working capital amid the current inflationary environment is expected to further aid the growth of alternative lending providers. In addition to the B2B sector, providers focused on the B2C segment are also expected to achieve high growth in terms of customer acquisition and loan disbursals from the short to medium-term perspective.
Australian firms are acquiring digital mortgage lenders globally to drive geographical expansion in 2023
With the global alternative lending market expected to enter into a high-growth period in 2023, Australian firms are seeking acquisition deals to drive their geographical expansion and achieve accelerated growth.
In March 2023, ColCap, the Australian non-bank lender, announced that the firm had acquired an 80% stake in United Kingdom-based Molo. The acquisition comes after the two firms entered into a strategic collaboration in 2022. Leveraging the expertise and presence of Molo in the United Kingdom, ColCap is seeking to tap into the multi-billion-dollar mortgage market. For Molo, the acquisition by ColCap will enable the firm to further innovate its product offering, while making the mortgage process more simplified.
From the short to medium-term perspective, the publisher expects more such acquisition deals to take place in the Australian and global markets, thereby aiding the competitive landscape and industry growth over the next three to four years.
Firms are raising funding rounds to innovate their product offering and strengthen their position in the Australian market
To transform the digital lending category in Australia and to strengthen their position by entering into new business verticals, firms are raising venture capital and private equity funding in Australia.
In December 2022, Tic:Toc, the Australia-based fintech firm, announced that the firm had secured another A$24 million in funding as part of its Series D round, which was led by IAG Firemark Ventures. With this round, the firm has an approximate valuation of A$230 million. The firm is planning to use the funding round to develop its platform and drive transformation in the digital lending category. Furthermore, the firm will also use the capital to embed additional products and services, including insurance into its digital lending platform.
As the market becomes increasingly competitive, more such providers are expected to raise venture capital and private equity funding in Australia from the short to medium-term perspective. This will further aid the growth of the Australian alternative lending market in Australia over the next three to four years.
This report provides a detailed data-centric analysis of the alternative lending market covers in-depth market potential and various. Embark on a detailed exploration of the alternative lending market with our latest report, dissecting key economic indicators to provide a holistic view of this dynamic landscape. Delve into the alternative lending market's expansive horizons, from overall market size and forecasts to granular analyses of end-user segments, diverse finance models, and payment instrument intricacies.
This report helps in navigating the nuanced relationships between payment instruments and lending models, offering a detailed breakdown of transaction dynamics. Uncover the multifaceted nature of loans, from personalized B2C offerings like payroll advances to strategic B2B solutions like lines of credit. Complementing these insights, delve into consumer attitudes and behaviors, decoding the impact of age, income, and gender on financial choices.
Scope
Australia Alternative Lending Market Size and Forecast by Loan Types
- B2C Loans
- Personal Loan
- Payroll Advance
- Home Improvement
- Education/Student Loans
- Point of Sale
- Auto Loans
- Medical Loans
- B2B Loans
- Lines of Credit
- Merchant Cash Advance
- Invoice Factoring
- Revenue Financing
Australia Alternative Lending Analysis by Consumer Attitude and Behaviour
- By Age
- By Income
- Gender
Australia Economic Indicators
- Gross Domestic Product at Current Prices
- Population
- Unbanked Population
- Unemployment Rate
- Loan Default Rate
Australia Alternative Lending Market Size and Forecast
- Transaction Value
- Average Transaction Value
- Transaction Volume
Australia Alternative Lending Market Size and Forecast by End User
- End User - Business
- End User - Consumer
Australia Alternative Lending Market Size and Forecast by Finance Models
- P2P Marketplace Consumer Lending
- P2P Marketplace Business Lending
- P2P Marketplace Property Lending
- Balance Sheet Consumer Lending
- Balance Sheet Business Lending
- Balance Sheet Property Lending
- Invoice Trading
- Debt Based Securities
- Equity Based Crowd Funding
- Real Estate Crowd funding
Australia Alternative Lending Market Size and Forecast by Payment Instrument - Transaction Value, Volume and Average Value
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Australia Alternative Lending Market Size and Forecast by Payment Instrument to Model
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Consumer Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Business Lending
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Property Lending
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Consumer Lending
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Business Lending
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Property Lending
Alternative Lending Market Size and Forecast by Payment Instrument to Invoice Trading
Alternative Lending Market Size and Forecast by Payment Instrument to Debt Based Securities
Alternative Lending Market Size and Forecast by Payment Instrument to Equity Based Crowd Funding
Alternative Lending Market Size and Forecast by Payment Instrument to Real Estate Crowd funding
For more information about this report visit https://www.researchandmarkets.com/r/pp8jk5
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