The secured lending market is on course to hit $34.3tn (\u00a325.9tn) by 2033, according to a report by Allied Market Research, more than double its current size.<\/p>\n
According to the report, the secured lending market was valued at $12.4tn in 2023, and is estimated to grow at a compound annual growth rate of 10.5 per cent from 2024 to 2033.<\/p>\n
Lower interest rates and longer repayment periods in addition to a rise in the adoption of digital platforms and advancements in financial technology have driven the demand for loans secured by collateral, according to the report.<\/p>\n
Read more:<\/strong> Blackstone Secured Lending Fund reports record $186m Q3 net investment income<\/a><\/p>\n Financial institutions are partnering with technology firms to introduce embedded card payment solutions, creating seamless checkout experiences, spurring growth in the sector.<\/p>\n At the same time, the integration of data analytics and artificial intelligence is enhancing risk assessment, optimising loan terms, and improving the overall experience for borrowers.<\/p>\n However, the risk of asset loss in case of default and longer processing time to access the value of the collateral remain concerns for industry players, the Allied report found.<\/p>\n