The alternative lending in this region is expected to grow by 26.5% on an annual basis to reach US$5.93 billion in 2024.
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 17.4% during 2024-2028. The alternative lending market in the country will increase from US$4.68 billion in 2023 to reach US$11.26 billion by 2028.
The Australian alternative lending sector is rapidly evolving, marked by innovative products, strategic partnerships, and significant mergers. Increased SME adoption and regulatory changes, including proposed BNPL legislation and enhanced governance standards, underscore a shift towards more flexible, accessible, and regulated financial solutions. This growth reflects a dynamic shift away from traditional banking, aiming to better meet the needs of businesses and consumers in an evolving financial landscape.
Moula also made strides with its new Moula Pay product, designed to enable businesses to offer BNPL options for B2B transactions, thus expanding their financing capabilities. These launches reflect a growing trend towards providing more adaptable and accessible financial solutions in the Australian market.
One notable collaboration is between Prospa and Xero, which integrated Prospa's lending solutions into Xero's accounting platform. This partnership enables small businesses using Xero to access Prospa's financing options directly, streamlining the application process and improving accessibility to funds.
Additionally, the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have released guidance related to the Financial Accountability Regime. This framework is designed to enhance the accountability of financial institutions, including non-bank lenders, by imposing stricter governance and risk management standards. The guidance aims to improve the overall stability of the financial system while addressing potential risks associated with non-bank lending activities.
These regulatory changes indicate a proactive approach by Australian authorities to monitor and manage the evolving landscape of alternative lending, ensuring that consumers and the financial system are adequately protected as the sector grows.
This report provides a detailed data-centric analysis of the Alternative Lending industry, covering market opportunities and risks across a range of industry categories. With over 50 KPIs at the country level, this report provides a comprehensive understanding of Alternative Lending market dynamics, market size and forecast, and market share statistics.
It breaks down market opportunity by type of payment instrument, loan types, and consumer behavior. In addition, it provides a snapshot of marketing objective and industry spend dynamics in Australia. KPIs in both value and share term help in getting in-depth understanding of end market dynamics.
The publisher’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.
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 17.4% during 2024-2028. The alternative lending market in the country will increase from US$4.68 billion in 2023 to reach US$11.26 billion by 2028.
The Australian alternative lending sector is rapidly evolving, marked by innovative products, strategic partnerships, and significant mergers. Increased SME adoption and regulatory changes, including proposed BNPL legislation and enhanced governance standards, underscore a shift towards more flexible, accessible, and regulated financial solutions. This growth reflects a dynamic shift away from traditional banking, aiming to better meet the needs of businesses and consumers in an evolving financial landscape.
Growth in the Alternative Lending Sector
The alternative lending sector in Australia has grown significantly, particularly among small and medium-sized enterprises (SMEs) seeking faster and more flexible financing options as traditional banks tighten their lending criteria. This trend is expected to continue, with increasing awareness of non-bank lending solutions and a growing reliance on brokers to facilitate access to these funds.Key Developments in the Alternative Lending Sector
Product Launches and Innovations
Prospa introduced its Line of Credit product, which offers businesses flexible access to funds ranging from $2,000 to $25,000, allowing them to pay interest only on the amount they utilize. Additionally, Prospa launched Prospa Pay, a buy now, pay later solution tailored for SMEs, facilitating easier payment options for their customers.Moula also made strides with its new Moula Pay product, designed to enable businesses to offer BNPL options for B2B transactions, thus expanding their financing capabilities. These launches reflect a growing trend towards providing more adaptable and accessible financial solutions in the Australian market.
Strategic Partnerships
The Alternative Lending sector in Australia has witnessed several key partnerships aimed at enhancing service offerings and expanding market reach.One notable collaboration is between Prospa and Xero, which integrated Prospa's lending solutions into Xero's accounting platform. This partnership enables small businesses using Xero to access Prospa's financing options directly, streamlining the application process and improving accessibility to funds.
Regulatory Changes
One significant initiative is the proposed legislative reform regarding Buy Now, Pay Later (BNPL) arrangements. The Australian Government has introduced draft legislation to amend the National Consumer Credit Protection Act to bring BNPL services under the existing regulatory framework for credit products. This move is intended to ensure that BNPL offerings are regulated in a manner that is flexible and proportionate to the risks of consumer harm, reflecting a growing recognition of the need for consumer protection in this rapidly expanding market.Additionally, the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have released guidance related to the Financial Accountability Regime. This framework is designed to enhance the accountability of financial institutions, including non-bank lenders, by imposing stricter governance and risk management standards. The guidance aims to improve the overall stability of the financial system while addressing potential risks associated with non-bank lending activities.
These regulatory changes indicate a proactive approach by Australian authorities to monitor and manage the evolving landscape of alternative lending, ensuring that consumers and the financial system are adequately protected as the sector grows.
This report provides a detailed data-centric analysis of the Alternative Lending industry, covering market opportunities and risks across a range of industry categories. With over 50 KPIs at the country level, this report provides a comprehensive understanding of Alternative Lending market dynamics, market size and forecast, and market share statistics.
It breaks down market opportunity by type of payment instrument, loan types, and consumer behavior. In addition, it provides a snapshot of marketing objective and industry spend dynamics in Australia. KPIs in both value and share term help in getting in-depth understanding of end market dynamics.
The publisher’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.
Scope
This report provides in-depth data-centric analysis of Alternative Lending industry in Australia through 125 tables and 150 charts. Below is a summary of key market segments.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
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Property Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Consumer Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Business Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Property Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Invoice Trading
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Debt Based Securities
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Equity Based Crowd Funding
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Real Estate Crowd funding
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
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
Reasons to buy
- Gain a thorough understanding of the Alternative Lending market dynamics: Market opportunities, significant trends, and forecasting (2019 - 2028) are listed. To stay ahead of the curve, comprehend market trends using important KPIs like Value and Share.
- Insights by Industry: Evaluate new opportunities across multiple industries, and obtain market dynamics by industry in order to swiftly catch up with the latest and upcoming developments in Alternative Lending markets.
- Market-specific strategies: With our unique blend of quantitative forecasting and cutting-edge insights, we can identify growth sectors that are focused on particular opportunities and analyse market-specific risks as well as significant trends in the Alternative Lending industry.
- Through industry intelligence, forward-looking research of Alternative Lending market spend, and key opportunities in Australia, develop proactive and profitable company plans.
Table of Contents
1. About this Report
2. Australia Economic Indicators
3. Australia Alternative Lending Industry Attractiveness
4. Australia Alternative Lending Market Size and Forecast by End User
5. Australia Alternative Lending Market Size and Forecast by Finance Models
6. Australia Alternative Lending Market Size and Forecast by Payment Instrument
7. Australia Alternative Lending Market Size and Forecast by Payment Instrument to Model
8. Australia Alternative Lending Market Size and Forecast by Loan Types
9. Australia Alternative Lending Analysis by Consumer Attitude and Behaviour
10. Further Reading
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 189 |
| Published | September 2024 |
| Forecast Period | 2024 - 2028 |
| Estimated Market Value ( USD | $ 5.9 Billion |
| Forecasted Market Value ( USD | $ 11.3 Billion |
| Compound Annual Growth Rate | 17.4% |
| Regions Covered | Australia |
