USA Loan Aggregator Market Outlook to 2027

Market Overview:

The loan aggregator market in the United States has witnessed significant transformation & growth in the recent years. This is driven by increasing digitization of financial services and changing consumer preferences. The financial sector's transitioning towards digital services has greatly influenced the USA loan aggregator market. Online platforms have gained attention as consumers increasingly seek convenient and efficient ways to access financial products.

Loan aggregators play an important role by offering a variety of loan products, ranging from personal loans to mortgages and auto loans. This diversity encourages consumers to compare options and choose loans tailored to their specific needs. The market is becoming increasingly competitive, prompting loan aggregators to bring innovation in user experience, interest rates, and loan terms. This competition nurtures an environment where platforms continuously strive to differentiate themselves to attract a larger user base.

USA Loan Aggregator market is a fairly fragmented market with the presence of certain large, established players in the market & many upcoming small companies & fintechs. A few of the well-established players in the market include Lending Tree, NerdWallet, Credit Karma, Bankrate, Fiona, Zillow etc.

USA Loan Aggregator Market Analysis

• USA Loan Aggregator is still reeling from the effects of COVID-19 pandemic, during 2020-2021 and it is still recovering from the effects of COVID-19.
• The demand for home loans and credit cards declined between 2017-2022 while the demand grew for refinancing.
• In 2017 and 2018, the market was driven by an increasing demand for personal loan, credit cards, mortgages and other related products.
• In 2020, there have been changes in economic conditions due to COVID-19 which caused lower demand for credit cards and personal loans among consumers. The declining interest rates led to refinance mortgage products’ demand to increase but reduced the demand for purchase mortgage loans.
• During 2022, the disbursement of consumer related loans increased but the rise of interest rates significantly reduced the demand for refinancing mortgage transactions to balance the growth in revenue from consumer related products.

Key Trends by Market Segment:

By Mode of Operations: The USA loan aggregator market is segmented by mode operations in online & offline operations. The offline operations tend to have higher amount of market share with over 80% of revenue contribution in 2022. The reason for its dominance is that, financial services which includes loans and lending are subject to strict regulations. Compliance with these regulations may favor traditional offline processes that ensure a more thorough verification and documentation process.

By Loan Type: The USA loan aggregator market is segmented into home loans, credit cards, personal, auto and SME/Commercial. Out of these, personal loans market has dominated the segment with over ~45% of market share in 2022. Many personal loans have fixed interest rates, providing borrowers with predictability and stability in their monthly payments. This can be attractive to individuals who want to budget and plan their finances with certainty.

By Region: The US region is segmented into East, West, Midwest, Northwest, North East, South, Northeast & Pacific Northwest. In 2022, the East Coast has dominated the market with ~30% of revenue contribution. East Coast includes financial hubs like New York, which consists of numerous financial institutions. The concentration of financial resources & expertise leads to its highest contribution in the overall loan aggregator market.

Competitive Landscape:

Major Players in USA Loan Aggregator Market

• NerdWallet, Credit Karma are the pioneers in loan aggregation as they deal across multiple products & are also present outside USA in Canada, UK, Australia which has established a strong geographical presence.
• The challengers in loan aggregation in United States are NerdWallet, Bankrate as they have various products like loans, insurance etc. and have a significant presence inside of USA but not operating outside of United States.
• Engine by MoneyLion, Fiona etc. are some of the many niche players in the market. These players are still developing their product portfolio and are currently operating within USA restricting their reach.
• One of the factors which drives the market is, increase in revenue from consumer loans. This is happening due to increased demand for debt consolidation as their credit card balances increased among the consumers.

Recent Developments:

• May 2023: US Banks’ aggregate loan-to-deposit ratio went up in the first quarter, making the fourth consecutive quarter in which the ratio has increased.
• Apr 2023: US Bank lending slumps by most on record in final weeks of March wherein commercial loans by banks declined by nealry $105 billion.
• Feb 2023: The Federal Insurance Deposit Corporation (FDIC) insured institutions reported net income of $68.4 in the fourth quarter of 2022.

Future Outlook:

• The market is expected to grow at a CAGR of 12.1% during 2022-2027.
• The rise of per capita disposable income by 7.4% from previous year and further expected rise is likely to represent a potential opportunity for industry.
• Technological advancements from online loan aggregators is expected to provide a boost in the market’s growth due to increased efficiency in operations, scalability and marketing.
• However, competition will become more intense in future with entry of new players and launch of innovations by the existing ones.
• If interest rates are further increased by the Federal Reserve due to runaway inflation it will lead to increase in mortgage and other rates in the economy. It will reduce people’s willingness to take loans and would impact the profit margins and revenue generating ability of loan aggregators in USA.