Commercial Lending Market Report 2024

The commercial lending market size has grown rapidly in recent years. It will grow from $14.15 trillion in 2023 to $16.44 trillion in 2024 at a compound annual growth rate (CAGR) of 16.2%. The growth observed during the historic period can be attributed to factors such as economic expansion, low interest rates, financial sector deregulation, increased consumer spending, and favorable credit conditions.

The commercial lending market size is expected to see rapid growth in the next few years. It will grow to $30.09 trillion in 2028 at a compound annual growth rate (CAGR) of 16.3%. The growth expected in the forecast period can be attributed to variations in interest rates, economic recovery trends, government fiscal policies, business investment strategies, and inflationary pressures. Major trends during this period include greater fintech adoption, advancing digital transformation, increased regulatory scrutiny, broader credit access, and evolving market dynamics.

The expansion of small and medium-sized enterprises (SMEs) is expected to drive significant growth in the commercial lending market. SMEs, defined as businesses with a limited number of employees and revenue thresholds varying by country and industry, are increasing due to their ability to adapt to market changes, lower operational costs, innovative capabilities, government support initiatives, and enhanced access to digital tools and technologies. Commercial lending plays a critical role in supporting SME growth by providing necessary capital for business expansion, operational needs, and new investments. For instance, in October 2022, according to the Department for Business, Energy, and Industrial Strategy (BEIS), a UK-based government department, SMEs accounted for 61% of total employment in 2022. The total employment in SMEs rose from 16.3 million at the start of 2021 to 16.4 million at the start of 2022, marking a 0.6% increase. This data highlights the substantial role of SMEs in the employment landscape and underscores their growth potential. As of May 2024, the House of Commons Library, a UK-based parliamentary research and information service, reported that there were 5.5 million SMEs in the UK in 2023. These SMEs represented over 99% of the total business population. This prevalence illustrates the significant impact of SMEs on the overall business environment and their substantial contribution to the commercial lending market.

Major players in the commercial lending market are increasingly focused on developing cutting-edge solutions, including next-generation corporate lending artificial intelligence (AI) technologies, to improve decision-making efficiency and risk management. These advanced AI technologies aim to automate and optimize lending processes, enhance credit risk assessment, and support better decision-making in the lending sector. For instance, in January 2023, Temenos AG, a Switzerland-based provider of banking software systems, introduced a next-generation AI-driven corporate lending solution. This platform is designed to assist banks in optimizing their commercial loan portfolios and enhancing servicing capabilities. It addresses the complexities associated with loan processing and lifecycle management across various lending lines and geographies, targeting both large-tier and regional banks that often encounter challenges due to fragmented systems and lack of integration.

In October 2023, Loan Market Group (LMG), an Australia-based broker aggregator, acquired Commercial Lending Excellence (CLE) for an undisclosed amount. This strategic acquisition is poised to enhance operational efficiency within the commercial lending sector by integrating streamlined processes, establishing a centralized knowledge hub, and elevating application quality. The transaction is expected to expedite deal submissions, ensure precise calculations, and result in improved conversion rates and client satisfaction. Commercial Lending Excellence (CLE) is a commercial lending technology platform based in Australia, specializing in providing advanced commercial lending services.

Major companies operating in the commercial lending market are JPMorgan Chase & Co., Bank of America Corporation, Santander Group, Wells Fargo & Co, HSBC Holdings plc, Citigroup Inc., Morgan Stanley, BNP Paribas, TD Bank Group, Goldman Sachs Group Inc., ING Group, Mitsubishi UFJ Financial Group, UBS Group AG, Capital One Financial Corporation, Barclays Bank PLC, Societe Generale SA, Sumitomo Mitsui Financial Group, Deutsche Bank AG, UniCredit Group, Truist Financial Corp, U.S. Bancorp, Standard Chartered PLC, PNC Financial Services Group Inc., Mizuho Financial Group Inc., Credit Suisse Group AG, Royal Bank of Scotland Group plc.

Asia-Pacific was the largest region in the commercial lending market in 2023 and it is expected to be the fastest-growing region in the forecast period. The regions covered in the commercial lending market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the commercial lending market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Commercial lending involves financial institutions issuing loans to businesses for various uses, including expansion, capital expenditures, and operational requirements. Businesses utilize these loans to fund growth projects, acquire equipment, manage cash flow, and support other capital-intensive and operational activities.

Commercial lending primarily includes unsecured lending and secured lending. Unsecured lending involves loans that are not backed by collateral and depend on the borrower’s creditworthiness and repayment capability, often leading to higher interest rates than secured loans. Both banks and non-banking financial companies (NBFCs) offer these loans, which are used by a range of businesses, from large enterprises to small and medium-sized enterprises.

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

The commercial lending market includes revenues earned by entities by providing services such as term loans, invoice financing, commercial mortgages, equipment leasing, trade finance, asset-based lending, and bridge loans. 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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