The global Remittance Market is estimated to be valued at US$ 334.7 million in 2022 and is expected to exhibit a CAGR of 26.9% over the forecast period 2022 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Remittance refers to funds transferred from migrant workers in foreign countries to their home countries. Remittance is an important source of external funding for developing countries and emerging markets. It provides benefits such as economic growth and poverty reduction.
Market key trends:
Digital transformation is driving innovations in remittance industry. The adoption of fintech solutions is enabling secure, convenient and affordable ways to send money across borders via digital platforms. Many FinTechs are leveraging blockchain technology to develop peer-to-peer remittance systems with lower transfer fees compared to traditional money transfer operators. This is positively impacting market growth.
Segment Analysis
The digital lending market is dominated by the small business loans segment. This segment accounted for the largest market share of over 35% in 2021 owing to the increasing demand for working capital and expansion needs among small businesses. Rising acceptance of digital platforms for financial transactions and government support for small and medium enterprises has further propelled the growth of this segment. Peer-to-peer lending is expected to witness the fastest growth during the forecast period due to the convenience offered, easy availability of funds, and competitive interest rates compared to traditional bank loans.
Key Takeaways
The global Digital Lending Market size is expected to witness high growth, exhibiting CAGR of 26.9% over the forecast period 2022 to 2030 due to increasing financial inclusion in developing countries.
Regional analysis: North America dominated the market with over 40% share in 2021. However, Asia Pacific is anticipated to showcase the fastest growth over the next few years owing to the presence of a large population that is adopting smartphones rapidly in countries like India and China.
Key players: Key players operating in the digital lending market are On Deck Capital Inc., Lendingclub Corp., and Social Finance Inc. (Sofi). These players have captured a significant market share in North America due to their early mover advantage and superior customer experience.
