Consumer Credit Market Report 2025

The consumer credit market size has grown strongly in recent years. It will grow from $11.74 billion in 2024 to $12.48 billion in 2025 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to economic growth and prosperity, access to financial services, changing lifestyles and consumption patterns, housing market dynamics, promotion and marketing strategies.

The consumer credit market size is expected to see strong growth in the next few years. It will grow to $15.99 billion in 2029 at a compound annual growth rate (CAGR) of 6.4%. The growth in the forecast period can be attributed to demographic changes and millennial behavior, education and healthcare expenses, innovation in credit products, global economic trends, regulatory environment. Major trends in the forecast period include open banking initiatives, fintech disruption, credit education and financial wellness, pandemic-influenced trends, sustainable finance.

The growing adoption of cashless transactions is anticipated to drive the expansion of the consumer credit market in the coming years. Cashless transactions refer to digital methods for transferring financial transactions between two parties without the use of physical currency, utilizing a payment gateway to transmit payments electronically. Fintech lenders are more inclined to extend loans to individuals who engage in cashless payment methods than to those who do not, as the payment histories of cashless users provide lenders with reliable information, facilitating more effective loan application screenings. Furthermore, these borrowers may enjoy lower interest rates and reduced default risks, leading them to prefer cashless payment options. For example, in July 2024, the Bangko Sentral ng Pilipinas, the central bank of the Philippines, reported that the percentage of digital payment transactions compared to total monthly retail payments rose from 42.1% in 2022 to 52.8% in 2023. Thus, the increasing adoption of cashless transactions is propelling the growth of the consumer credit market.

The anticipated surge in demand within the banking, financial services, and insurance (BFSI) sector is poised to fuel the expansion of the consumer credit market. BFSI encompasses institutions offering diverse financial products such as banking services, investment management, and insurance coverage. Within this sector, consumer credit plays a pivotal role, empowering individuals with access to funds for purchases, investments, and financial management. This symbiotic practice yields benefits for both consumers and financial entities by stimulating economic growth, generating interest income, and mitigating risk through rigorous credit assessment procedures. For example, as reported by Monster.com in March 2022, the BFSI industry in India observed a notable 27% growth in February 2022, attributed to the swift adoption of digital payment methods and advanced technologies such as AI, ML, and blockchain. Consequently, the robust presence of the banking, financial services, and insurance (BFSI) segment stands as a driving force behind the expansion of the consumer credit market.

Innovative product development stands as a prominent trend driving traction within the consumer credit market. Key players in this market are prioritizing the creation of pioneering solutions, leveraging technologies such as Artificial Intelligence (AI) and data analytics to fortify their market positions. A noteworthy example is LoanDepot Inc.'s introduction in November 2022 of a groundbreaking digital home equity line of credit (HELOC). This product boasts a user-friendly interface and swift processing, enabling closure within a mere seven-day timeframe from application initiation. Customers benefit from obtaining online rate quotes hassle-free in under five minutes, along with the ability to pre-qualify without impacting their credit scores. This unique technology platform harnesses digital tools and data, offering homeowners an efficient financing avenue to address inflation and escalating consumer debt, delivering an electronic convenience unparalleled by traditional HELOC products.

Leading companies within the consumer credit market are increasingly embracing a strategic partnership approach to bolster their access to insightful credit information and services. These strategic partnerships entail collaborative agreements or alliances between multiple entities, be it companies, organizations, or even governments, all aimed at achieving mutually advantageous goals. A case in point occurred in May 2023 when CreditWorks Group, a credit reporting firm based in New Zealand, forged a partnership with Equifax Inc., a prominent US-based credit bureau company. The objective behind this collaboration is to elevate their risk management strategies and enhance decision-making processes by tapping into Equifax's vast repository of comprehensive and accurate consumer credit data. Through this partnership, both entities seek to augment their capabilities in assessing risks and making informed credit-related decisions.

In June 2022, National Australia Bank Ltd. (NAB), a prominent financial institution headquartered in Australia, successfully acquired Citibank N.A. The specifics of the transaction amount were not disclosed. This acquisition primarily targeted Citigroup's consumer division, aligning with NAB's strategic objective of positioning itself as a leading personal bank while emphasizing a streamlined and digitally enhanced customer experience. Citibank N.A., an established consumer bank based in the United States, provides a diverse range of banking and financial services, amplifying NAB's reach and offerings in the consumer banking sphere.

Major companies operating in the consumer credit market include Industrial and Commercial Bank of China Limited, JPMorgan Chase & Co., China Construction Bank Corporation, The Bank of America Corporation, WELLS FARGO & CO., HSBC Holdings plc, Citigroup Inc., American Express Company, Mitsubishi UFJ Financial Group Inc., BNP Paribas SA, Capital One Financial Corporation, Barclays plc, Deutsche Bank AG, PayPal Holdings Inc., Synchrony Financial, Discover Financial Services, Navient Corporation, Hilltop Holdings Inc., Affirm Holdings Inc., Afterpay Touch Group Ltd., Zip Co. Limited, Sezzle Inc., Klarna Bank AB.

North America was the largest region in the consumer credit market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global consumer credit market report during the forecast period. The regions covered in the consumer credit market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the consumer credit market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Consumer credit involves personal debt for purchasing goods and services, often utilizing credit cards, allowing repayment over time with interest.

Consumer credit services encompass two primary categories such as credit services and software/IT support services. Credit services involve providing loans, various credit types, and credit information to both individuals and businesses. Types of credit offered include revolving and non-revolving credit issued by banks, finance companies, credit unions, and other financial institutions. These services are provided through various means such as direct deposit, debit cards, and other payment methods, catering to individuals, enterprises, and other applications.

The consumer credits market research report is one of a series of new reports that provides consumer credits market statistics, including the consumer credits industry global market size, regional shares, competitors with a consumer credits market share, detailed consumer credits market segments, market trends and opportunities, and any further data you may need to thrive in the consumer credits industry. This consumer credits market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The consumer credit market consists of revenues earned by entities by providing money lending services for closed-end credits and open-end credits. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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