Germany Alternative Lending Business Report 2024: A $9+ Billion Market by 2028 – 75+ KPIs on Market Size By End User, Finance Model, Payment Instrument, Loan Type and Demographics – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The “Germany Alternative Lending Market Business and Investment Opportunities Databook – 75+ KPIs on Alternative Lending Market Size, By End User, By Finance Model, By Payment Instrument, By Loan Type and Demographics – Q2 2024 Update” report has been added to ResearchAndMarkets.com’s offering.

The alternative lending in this region is expected to grow by 13.5% on an annual basis to reach US$6.44 billion in 2024. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 8.8% during 2024-2028. The alternative lending market in the country will increase from US$5.68 billion in 2023 to reach US$9.03 billion by 2028.

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.

The German alternative lending sector is showing cautious recovery and growth, driven by technological advancements and strategic partnerships. Key developments include innovative product launches, mergers and acquisitions, and increased regulatory oversight aimed at ensuring consumer protection and financial stability. Despite high interest rates and macroeconomic uncertainties, the sector’s expansion is supported by evolving digital solutions and government-backed funding initiatives for SMEs.

Growth in the Alternative Lending Sector

Alternative lending in Germany has experienced a cautious recovery, particularly in segments like peer-to-peer lending and consumer credit, driven by improving consumer confidence and slightly easing lending conditions. Alternative lending is expected to continue growing over the next few months, especially as banks anticipate a moderate increase in loan demand. However, challenges such as high interest rates and macroeconomic uncertainties may temper this growth.

Key Developments in the Alternative Lending Sector

Product Launches and Innovations

KfW announced plans to issue its first “tokenised bond” in 2024. This bond will utilize blockchain technology to streamline funding processes. It will also include biodiversity initiatives in a revamped “Green Bond Framework.” Additionally, the alternative lending platform market has seen growth driven by technological advancements. It focuses on real-time lending decisions powered by algorithms and caters to micro, small, and medium enterprises as well as startups.

Strategic Partnerships

Alternative lenders have forged partnerships with non-financial companies to offer embedded finance solutions. For example, Ratepay, a leading German payment provider, partnered with Funding Circle, a UK-based P2P lending platform, to integrate SME financing options into its payment services.

Mergers and Acquisitions

Large German banks have been actively acquiring fintech platforms to enhance their digital lending capabilities and reach new customer segments. For example, Commerzbank bought a significant stake in the SME-focused platform Billie. A previous report stated that Deutsche Bank acquired a majority stake in the online lending platform Auxmoney, however Deutsche Bank does not hold any shares in Auxmoney.

• Consolidation Among Peer-to-Peer Lenders – The peer-to-peer lending market has experienced some consolidation, with smaller players being acquired by larger competitors. Lendico, one of the leading P2P platforms, acquired its rival Zencap in a move to strengthen its position in the market.
• Cross-Border Deals – German alternative lenders have also been involved in cross-border transactions, leveraging their expertise to expand into new markets. Creditshelf, a German online lender, acquired a majority stake in the Austrian fintech Finnest to bolster its presence in the DACH region.
• Partnerships with Non-Financial Firms – Alternative lenders have been forging partnerships with non-financial companies to offer embedded finance solutions. Ratepay, a leading German payment provider, partnered with Funding Circle, a UK-based P2P lending platform, to provide SME financing options integrated into its payment services.

Regulatory Changes

• Enhanced Regulatory Framework for Non-Bank Lenders – The German Federal Financial Supervisory Authority (BaFin) has emphasized the need for stricter regulations on non-bank retail lenders, particularly in light of the growing reliance on alternative lending models. This includes clarifying that entities engaging in lending activities on a commercial basis must obtain a banking license, thereby extending regulatory oversight to ensure consumer protection and financial stability.
• Support for SMEs through Government Programs – The German government has continued to support small and medium enterprises (SMEs) through various funding initiatives, notably the ERP Special Fund, which offers low-interest loans tailored for startups and business succession. This program aims to enhance credit availability and reduce the credit default risk for banks involved in financing these ventures.
• Anti-Money Laundering Regulations – Regulatory authorities have reinforced the Money Laundering Act, which mandates compliance measures for alternative lenders to combat money laundering and terrorism financing. This includes strict reporting obligations and customer due diligence processes to enhance the integrity of the financial system.

These developments reflect a proactive approach by the German government and regulatory bodies to foster a secure and supportive environment for alternative lending while ensuring that risks are managed effectively.

Key Attributes:

Scope

Germany Economic Indicators

• Gross Domestic Product at Current Prices
• Population
• Unbanked Population
• Unemployment Rate
• Loan Default Rate

Germany Alternative Lending Market Size and Forecast

• Transaction Value
• Average Transaction Value
• Transaction Volume

Germany Alternative Lending Market Size and Forecast by End User

• End User – Business
• End User – Consumer

Germany 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

Germany 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

Germany 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

Germany 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

Germany Alternative Lending Analysis by Consumer Attitude and Behaviour

• By Age
• By Income
• Gender

For more information about this report visit https://www.researchandmarkets.com/r/gxod9u

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