The Latin America, Middle East and Africa Micro Lending Market should witness market growth of 15.2% CAGR during the forecast period (2022-2028).
Essentially all government development organizations have embraced micro lending, headed by the World Bank. It is said to have the potential to boost self-employment in the community, combat dependency on advantages and reduce the strain on the welfare state, and thus help in developing the local economy. Also in structurally deficient regions, this would aid in forming the foundation of the middle-class economy, and give employment opportunities to groups that are negatively affected in the labor market due to their lack of formal education.
Even the gender issue is resolved when women are given credit instead of males. Over the course of the projection period, the market expansion is predicted to be fueled by the attractive advantages of micro lending for both borrowers and investors. The advantages for microloan borrowers include secured microfinance and little to no loan collateral. Additionally, micro lending benefits borrowers by providing them with rapid & secure funding solutions.
Also, microloan investors profit since they may now invest passively through digital platforms and earn higher interest than they would with other fixed-income instruments. One of the main drivers of demand for micro lending services is the rise in small enterprises around the world. Peer-to-peer financing is also required by those in need of microloans. In the near future, it is believed that the adoption of cutting-edge technologies, like artificial intelligence that is capable of determining a customer's creditworthiness, would reduce the number of defaulter borrowers.
The expansion in this region can be linked to the region's rising micro lending platform provider population. Additionally, farmers in Latin America used microfinance to combat climate change through the United Nations Environment Program (UNEP). Likewise, to assist clients during the pandemic, companies in Latin America also increased their micro lending options. The growth of the banking and capital markets in the UAE and Brazil, as well as a surge in consumer demand for microcredit programs, all contribute to the favorability of micro lending.
The Brazil market dominated the LAMEA Micro Lending Market by Country in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $1,265.3 million by 2028. The Argentina market is estimated to grow a CAGR of 15.8% during (2022-2028). Additionally, The UAE market would experience a CAGR of 14.9% during (2022-2028).
Based on Service Provider, the market is segmented into Banks and Micro Finance Institutes (MFIs). Based on End-user, the market is segmented into Micro, Small & Medium Enterprises and Solo Entrepreneurs & Individuals. Based on countries, the market is segmented into Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Funding Circle Limited (Funding Circle Holdings plc), On Deck Capital, Inc. (Enova International, Inc.), American Express Kabbage Inc. (American Express Company), LendingClub Bank (LendingClub Corporation), Zopa Bank Limited, Biz2Credit, Inc., Lendio, Inc., Bluevine Capital, Inc., Fundera, Inc. (NerdWallet), and StreetShares, Inc.
Essentially all government development organizations have embraced micro lending, headed by the World Bank. It is said to have the potential to boost self-employment in the community, combat dependency on advantages and reduce the strain on the welfare state, and thus help in developing the local economy. Also in structurally deficient regions, this would aid in forming the foundation of the middle-class economy, and give employment opportunities to groups that are negatively affected in the labor market due to their lack of formal education.
Even the gender issue is resolved when women are given credit instead of males. Over the course of the projection period, the market expansion is predicted to be fueled by the attractive advantages of micro lending for both borrowers and investors. The advantages for microloan borrowers include secured microfinance and little to no loan collateral. Additionally, micro lending benefits borrowers by providing them with rapid & secure funding solutions.
Also, microloan investors profit since they may now invest passively through digital platforms and earn higher interest than they would with other fixed-income instruments. One of the main drivers of demand for micro lending services is the rise in small enterprises around the world. Peer-to-peer financing is also required by those in need of microloans. In the near future, it is believed that the adoption of cutting-edge technologies, like artificial intelligence that is capable of determining a customer's creditworthiness, would reduce the number of defaulter borrowers.
The expansion in this region can be linked to the region's rising micro lending platform provider population. Additionally, farmers in Latin America used microfinance to combat climate change through the United Nations Environment Program (UNEP). Likewise, to assist clients during the pandemic, companies in Latin America also increased their micro lending options. The growth of the banking and capital markets in the UAE and Brazil, as well as a surge in consumer demand for microcredit programs, all contribute to the favorability of micro lending.
The Brazil market dominated the LAMEA Micro Lending Market by Country in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $1,265.3 million by 2028. The Argentina market is estimated to grow a CAGR of 15.8% during (2022-2028). Additionally, The UAE market would experience a CAGR of 14.9% during (2022-2028).
Based on Service Provider, the market is segmented into Banks and Micro Finance Institutes (MFIs). Based on End-user, the market is segmented into Micro, Small & Medium Enterprises and Solo Entrepreneurs & Individuals. Based on countries, the market is segmented into Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Funding Circle Limited (Funding Circle Holdings plc), On Deck Capital, Inc. (Enova International, Inc.), American Express Kabbage Inc. (American Express Company), LendingClub Bank (LendingClub Corporation), Zopa Bank Limited, Biz2Credit, Inc., Lendio, Inc., Bluevine Capital, Inc., Fundera, Inc. (NerdWallet), and StreetShares, Inc.
Scope of the Study
By Service Provider
- Banks
- Micro Finance Institutes (MFIs)
By End-user
- Micro, Small & Medium Enterprises
- Solo Entrepreneurs & Individuals
By Country
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Funding Circle Limited (Funding Circle Holdings plc)
- On Deck Capital, Inc. (Enova International, Inc.)
- American Express Kabbage Inc. (American Express Company)
- LendingClub Bank (LendingClub Corporation)
- Zopa Bank Limited
- Biz2Credit, Inc.
- Lendio, Inc.
- Bluevine Capital, Inc.
- Fundera, Inc. (NerdWallet)
- StreetShares, Inc.
Unique Offerings
- Exhaustive coverage
- The highest number of Market tables and figures
- Subscription-based model available
- Guaranteed best price
- Assured post sales research support with 10% customization free
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market Overview
Chapter 4. LAMEA Micro Lending Market by Service Provider
Chapter 5. LAMEA Micro Lending Market by End-user
Chapter 6. LAMEA Micro Lending Market by Country
Chapter 7. Company Profiles
Companies Mentioned
- Funding Circle Limited (Funding Circle Holdings plc)
- On Deck Capital, Inc. (Enova International, Inc.)
- American Express Kabbage Inc. (American Express Company)
- LendingClub Bank (LendingClub Corporation)
- Zopa Bank Limited
- Biz2Credit, Inc.
- Lendio, Inc.
- Bluevine Capital, Inc.
- Fundera, Inc. (NerdWallet)
- StreetShares, Inc.
Methodology
LOADING...
