Market Overview

The global Consumer Credit Market size reached USD 12.0 Billion in 2024 and is projected to grow to USD 17.0 Billion by 2033, with a CAGR of 3.9% during 2025-2033. Growth is driven by economic expansion, urbanization, digitization of financial services, AI-driven credit scoring, BNPL adoption, financial inclusion, and rising demand for customized credit products, particularly in North America which holds over 35% market share.

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

Consumer Credit Market Key Takeaways

• The consumer credit market was valued at USD 12.0 Billion in 2024 and is expected to grow at a CAGR of 3.9% to reach USD 17.0 Billion by 2033.
• North America dominates the market with over 35% share in 2024.
• Increasing economic conditions for consumers and rising MSMEs in developing countries are key growth factors.
• Expanding financial management services and digital financial platforms promote market growth.
• Innovations in fintech, such as AI-driven credit scoring and BNPL, enhance credit accessibility.

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Market Growth Factors

The global consumer credit market is expected to grow. It is forecast to be driven by a recovering economy, urbanization, growth in digital financial services, and rising urban middle-class population in developing economies seeking credit to improve their standard of living. AI and digital distribution channels improve credit access to a wider range of borrowers. Some credit options are BNPL, like Visa's November 2024 rollout of its Flexible Credential with Affirm Card, which offer more credit options, easier access to credit, and flexible repayment schedules.

The increase has been driven partly by the growth of micro, small and medium-sized enterprises (MSMEs) in developing markets in which banks and other lenders have invested, due to a credit gap with local suppliers. They generate 120 million jobs and account for 33% of India's GDP. Tier-2 and Tier-3 cities' startup population is growing faster than tier-1 cities, contributing 49% of total startups in India. A result of this rapid startup activity is increased demand for credit. In the US, microbusinesses are the largest market segment for consumer credit, comprising 92% of businesses.

Another factor that propels market growth is the increasing demand for digitalization. Implementation of advanced technologies such as artificial intelligence, machine learning, and cloud computing in BFSI benefits banks and Fintech, allowing customers to take loans easily and reducing loan processing time and risk involved. Government policies supporting digital credit platforms, e.g., the Reserve Bank of India's working group on digital credit in January 2023, can support the rise of safe credit. Social media provides a channel for credit businesses to reach consumers. For example, South Korean bank kakaobank signed up two million subscribers within 15 days of its product launch. US banks have a strong presence on social media.

Market Segmentation

Analysis by Credit Type:

• Non-revolving Credits: The largest segment in 2024, consisting of fixed amount loans repaid in installments. Growth is driven by increasing auto and education loans. Vehicle loans in India rose by 137% over three years, while Americans took USD 55.0 Billion in new auto loans monthly in Q4 2023.
• Revolving Credits: Not detailed with specific data.

Analysis by Service Type:

• Credit Services: Market leader in 2024. Includes loans and credit-related information for personal and business use, boosted by rising education and vehicle loans. For example, 58% of American adults aged 18-29 hold student loan debt.
• Software and IT Support Services: Mentioned but no specific data included.

Analysis by Issuer:

• Banks and Finance Companies: Leading segment in 2024, offering financial services such as lending, borrowing, and investing, facilitating domestic and global transactions.
• Credit Unions: Mentioned without specific data.
• Others: Mentioned without specific data.

Analysis by Payment Method:

• Debit Card: Leading with approximately 60% market share in 2024. Enables easy EMI payments with low or no-cost EMI options. For example, HDFC Bank offers EASYEMI allowing installment payments online or offline with low maintenance charges compared to credit cards.
• Direct Deposit: Mentioned without specific data.
• Others: Mentioned without specific data.

Regional Insights

North America dominates the consumer credit market with over 35% share in 2024. Strong growth is fueled by adoption of consumer credit by SMEs, increasing personal loan uptake, and presence of major banks such as Citibank, Bank of America, and Goldman Sachs. Total loans in the US reached USD 12,305.379 billion by March 2024. Investment banking expansion by institutions like Citigroup further supports market growth.

Recent Developments & News

In December 2024, Axis Bank launched 'Primus,' a super-premium Visa credit card targeting ultra-high-net-worth individuals in India, offering bespoke global privileges. The same month, ICICI Bank and Times Internet introduced the 'Times Black ICICI Bank Credit Card' with luxury benefits and reward points. Earlier, in October 2024, General Motors partnered with Barclays U.S. Consumer Bank to exclusively issue GM Rewards Mastercard in the US. September 2024 saw CARD91 introduce a 3-in-1 card platform integrating ID, access, and prepaid functionalities. In August 2024, Visa showcased multiple payment innovations at the Global Fintech Fest 2024 in India.

Key Players

• Bank of America
• Barclays
• BNP Paribas
• China Construction Bank
• Citigroup
• Deutsche Bank
• HSBC
• Industrial and Commercial Bank of China (ICBC)
• JPMorgan Chase
• Mitsubishi UFJ Financial
• Wells Fargo

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