Market Research Report Germany banking and financial market,Germany banki | Page 2

Lower mortgage interest rates helped the consumers for an early payoff and this trend fueled the
stable economic situation and low unemployment. Consumer lending in Germany is projected to
record a short-term massive growth with its low interest rates. However, the long-term goals of
consumer lending are depressing with the rise in interest rates and increase in ageing population.
The stable economy in Germany increased consumer creditwhich helped overall consumer
lending to record enormous growth in terms of lending. In the year 2016, Germans financed
almost everything with a loan and the growth was registered across all consumer lending
categories.The consumer lending growth is the most promising growth with an average annual
growth rate of 95%.The key driving factors that reshaped the Germany consumer lending market
are changes in economic conditions, development of new technological solutions, the growth and
acceptance of online lending.
The financial industrywitnessed crisis that led to improvement in the banking sector.
Digitalization led to cost reduction and improved customer targets. Financial sector developed
additional regulations to ensure consumers are adequately protected which is more important
now-a-days. The consumer credit will reach the highest levels and banks will continue to grow in
mortgage-lending as house prices will rise and write-off risk will decrease. This is a good sign of
healthy recovery; while business lending will reach new heights.