The global consumer
finance market was valued USD1221 billion in 2022 and is predicted to grow at
CAGR of 7.16% through 2028 on account of growing demand for credit-based
consumption, rising disposable incomes and strong economic growth. This sector
is seeing a lot of new firms enter and grow, including significant peer-to-peer
lenders and all-digital players.
Consumer lifestyles and
financial conditions are changing quickly, which drives the consumer finance
business. It is believed that one of the most coordinated and developed
industries in the world is consumer finance. Consumer finance has been
increasing steadily as a result of the ongoing population growth and economic
expansion. Additionally, the quick processing of loan requests from a number of
public and private banks or financial institutions, as well as the simple
availability of various loans including home loans, vehicle loans, and school
loans, are anticipated to support the expansion of the global consumer finance
market.
The COVID-19 pandemic
slowed the nation's overall economic expansion. The consumer finance market was
also impacted by the economic slump. Consumer spending across loan categories,
such as personal loans and consumer durable loans, had been significantly hit
by issues like job losses, wage reductions, and concerns about the future,
which further hampered the expansion of the global consumer finance sector
during that period. As the primary secure and accessible choice for customers
during the lockdown, the online options, reported increasing usage of
financial services.