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". The global consumer credit market size reached USD 11.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 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 global consumer credit market is profoundly affected by current economic conditions and income levels. In periods of economic prosperity characterized by low unemployment and consistent GDP growth, consumers generally exhibit greater confidence in their financial situations. This heightened confidence frequently results in increased borrowing and expenditure. Under such favorable circumstances, financial institutions are inclined to extend credit more liberally, often accompanied by appealing interest rates and terms. Consequently, this environment fosters a rise in the demand for consumer credit. Conversely, during times of economic decline, the consumer credit market may encounter significant obstacles. Elevated unemployment rates, diminished income levels, and pervasive economic uncertainty can prompt consumers to adopt a more cautious approach towards incurring debt.
Rapid Technological Advancements and Digitalization:
The second element influencing the global consumer credit market is the progress in technology and the growing inclination towards digitalization. In today's interconnected environment, consumers demand convenience and rapidity in financial transactions, particularly in borrowing. Fintech firms have been instrumental in reshaping the consumer credit sector by launching innovative digital lending platforms and enhancing application procedures. These technological improvements have facilitated easier access to credit for consumers. Online lenders, peer-to-peer lending platforms, and mobile applications have streamlined both the application and approval processes.
Changing Consumer Behavior and Lifestyle:
The transformation of consumer behavior and lifestyle preferences represents a significant factor influencing the global consumer credit market. In recent years, there has been a notable evolution in how individuals shop, settle payments for goods and services, and manage their financial affairs. The rise of e-commerce, for instance, has surged dramatically, resulting in a higher volume of online transactions and a growing demand for digital payment solutions. Consumers are increasingly embracing cashless payment alternatives, including credit cards, mobile wallets, and Buy Now, Pay Later (BNPL) services. These payment methods offer both convenience and flexibility, thereby promoting the use of credit as a preferred payment option.
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
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