Market to Reach $8 Billion by 2028 as Digital Platforms and Crowdfunding Revolutionize the Industry #JapanFinance
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Japanese Alternative Lending Market
Japanese Alternative Lending Market
Dublin, Oct. 25, 2024 (GLOBE NEWSWIRE) — The “Japan 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 22.2% on an annual basis to reach US$4.65 billion in 2024. Medium to long term growth story of alternative lending in Japan remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 14.5% during 2024-2028. The alternative lending market in the country will increase from US$3.81 billion in 2023 to reach US$8.00 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. It breaks down market opportunity by type of payment instrument, loan types, and consumer behavior. In addition, it provides a snapshot of marketing objective and industry spend dynamics in Japan. KPIs in both value and share term help in getting in-depth understanding of end market dynamics.
The alternative lending sector in Japan is experiencing significant growth driven by technological advancements, product innovation, and supportive regulatory changes. This trend is expected to continue as fintech solutions gain traction, with key developments in peer-to-peer lending, crowdfunding, and strategic partnerships further enhancing the sector’s expansion. As the regulatory environment evolves, focusing on financial stability and balanced financing approaches will be crucial for the sustainable growth of alternative lending in Japan.
Growth in the Alternative Lending Sector
Alternative lending in Japan has seen steady growth, driven by increasing acceptance of fintech solutions among consumers and businesses seeking more flexible financing options. Sub-segments such as peer-to-peer lending and digital credit platforms have gained traction, catering to the needs of small and medium-sized enterprises (SMEs) and individual borrowers. The next few months are expected to further enhance this growth as technological advancements and regulatory support create a more favorable environment for alternative lending solutions in the country.
Key Developments in the Alternative Lending Sector
Product Launches and Innovations
SoFi Japan’s Educational Loan Products: SoFi has introduced new educational loan offerings aimed at young professionals and students, focusing on personal development and skill enhancement. This initiative is designed to promote financial inclusion and support individuals seeking to invest in their education.
Crowdfunding Platforms Expansion: Several Japanese fintech companies have launched or expanded their crowdfunding platforms, allowing small businesses and startups to raise funds directly from individual investors. These platforms provide an alternative financing route for entrepreneurs facing challenges in securing traditional bank loans.
Digital Peer-to-Peer Lending Solutions: New peer-to-peer lending platforms have emerged, leveraging technology to connect borrowers directly with lenders, thus simplifying the loan process and reducing costs. These platforms are designed to cater to both consumer and small business needs, enhancing access to credit in the market.
Strategic Partnerships
KKR & Co. Inc. announced plans to enter the private credit market in Japan. This move is aimed at providing alternatives to traditional bank loans, marking a strategic expansion for KKR in the region. The CEO of KKR Japan emphasized that this initiative would be a medium to long-term effort, highlighting the importance of establishing a direct presence in the Japanese market.
Raymond James Financial formed a strategic partnership with Eldridge Industries and Raymond James Bank to create a private credit division. This collaboration is designed to offer tailored credit solutions specifically for portfolio companies of private equity firms, indicating a trend towards specialized lending services in the market.
Barclays PLC established a partnership with AGL Credit Management to launch a private credit investment platform. This collaboration aims to leverage AGL’s expertise in corporate credit alongside Barclays’ capabilities in leveraged finance, further enhancing their offerings in the private credit space.
Regulatory Framework Enhancements
Financial Services Agency (FSA) Reforms: The FSA has initiated a transformation of its supervisory approach, shifting from a checklist-based system to a principles-based, risk-focused engagement. This change aims to improve the effectiveness of banking supervision and regulation, enhancing the overall stability of the financial system while promoting effective financial intermediation.
Banking Act Amendments: Recent amendments to the Banking Act have been made to adapt to significant changes in the financial environment, including low interest rates and advancements in FinTech. These amendments have relaxed certain regulations, particularly concerning IT-related businesses and operations that support sustainable societal development and regional revitalization.
Financial Safety and Crisis Readiness
Financial Sector Assessment Program (FSAP): The FSAP conducted an assessment focusing on Japan’s financial safety net and crisis readiness. Recommendations from this program emphasize the need for a robust framework for financial stability surveillance and effective supervision of non-bank financial institutions (NBFIs), which are crucial for the alternative lending landscape.
Lender of Last Resort (LOLR) Functionality: The Bank of Japan (BOJ) continues to play a critical role as a lender of last resort, providing liquidity to financial institutions facing shortages. This function is vital for maintaining stability in the financial system, particularly for non-bank financial institutions that may be involved in alternative lending.
Focus on External Financing
Concerns Over Reliance on External Finance: The Japanese authorities have expressed concerns regarding the heavy reliance of enterprises on external finance rather than internal sources. This concern is particularly relevant for the alternative lending sector, as it highlights the need for a balanced approach to financing that includes both traditional and alternative sources.
Key Attributes:
Report Attribute
Details
No. of Pages
189
Forecast Period
2024 – 2028
Estimated Market Value (USD) in 2024
$4.7 Billion
Forecasted Market Value (USD) by 2028
$8 Billion
Compound Annual Growth Rate
14.5%
Regions Covered
Japan
Scope
This report provides in-depth data-centric analysis of Alternative Lending industry in Japan through 125 tables and 150 charts. Below is a summary of key market segments.
Japan Economic Indicators
Japan Alternative Lending Market Size and Forecast
Japan Alternative Lending Market Size and Forecast by End User
End User – Business
End User – Consumer
Japan 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
Japan 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
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
Japan 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
Japan Alternative Lending Analysis by Consumer Attitude and Behaviour
For more information about this report visit https://www.researchandmarkets.com/r/g8na13
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