CrowdLending (Business) - Worldwide

The total transaction value in the Crowdlending (Business) market market worldwide is expected to reach US$32.30bn by 2024.
When comparing globally, China is set to achieve the highest transaction value, reaching US$16bn in 2024.
In the worldwide CrowdLending market, the United States continues to lead in innovative capital raising strategies through online platforms.

Definition:

Crowdlending platforms, otherwise know as lending-based Crowdfunding enable small and medium-sized enterprises to get loans from single or multiple, private and institutional investors via an online brokering platform. On credit platforms such as Funding Circle, OnDeck, Kabbage and Lending Club, businesses can obtain small loans up to a set maximum value. As a rule, financing requests are analyzed by the provider via an internal scoring system and are checked against additional minimum requirements such as turnover. Subsequently, these financing requests can be invested in by private and institutional investors at an appropriate interest rate determined by the credit rating of the company. This makes it possible for SMEs to borrow quickly and easily, as the basic requirements for obtaining finance are more flexible compared to traditional bank loans.

Alternative financing for SMEs and freelancers (bank-independent loans)
Small business loans issued by single or multiple private and institutional investors (non-banks)
Online loan request, scoring and approval

Traditional bank loans
Consumer loans and credit card transactions
Business-to-Business credit scoring and rating services
Online marketplaces for consumer loans (see Marketplace Lending)

The CrowdLending (Business) market in Worldwide is witnessing significant growth and development, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In today's digital age, businesses are increasingly turning to crowd lending as a viable alternative to traditional financing options. Crowd lending platforms offer businesses the opportunity to access funding quickly and easily, without the need for extensive paperwork or collateral. This appeals to small and medium-sized enterprises (SMEs) that may have difficulty obtaining loans from traditional banks. Additionally, crowd lending provides businesses with a platform to showcase their ideas and gain support from a community of investors who are interested in supporting innovative ventures.

Trends in the market: One of the key trends in the crowd lending market is the rise of peer-to-peer (P2P) lending platforms. These platforms connect borrowers directly with lenders, cutting out the intermediaries such as banks. P2P lending has gained popularity due to its ability to offer competitive interest rates and flexible loan terms. This trend is particularly evident in countries with a large number of tech-savvy individuals who are comfortable using online platforms for financial transactions. Another trend in the market is the increasing focus on sustainability and impact investing. Many crowd lending platforms are now offering loans specifically for businesses that have a positive social or environmental impact. This trend reflects the growing demand from investors who want to support businesses that align with their values.

Local special circumstances: The development of the crowd lending market varies across different countries and regions. In some countries, regulations may be more favorable towards crowd lending, allowing for greater innovation and growth in the industry. Additionally, cultural factors may play a role in the adoption of crowd lending, with some countries embracing the concept more readily than others.

Underlying macroeconomic factors: The global economic landscape also influences the development of the crowd lending market. In times of economic uncertainty, businesses may turn to crowd lending as a more accessible and flexible source of funding. Furthermore, low-interest rates in many countries have made traditional financing options less attractive, leading businesses to explore alternative avenues such as crowd lending. In conclusion, the CrowdLending (Business) market in Worldwide is experiencing significant growth and development due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The rise of P2P lending platforms, the focus on sustainability and impact investing, favorable regulations, cultural factors, and the global economic landscape all contribute to the expansion of the market. As businesses continue to seek convenient and accessible financing options, crowd lending is likely to play an increasingly important role in the global business landscape.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Crowdfunding is the collective effort of a large number of individuals who network and pool small amounts of capital to finance a new or existing business venture. Each campaign is set for a goal amount of money and a fixed timeframe, each day is counted down and the money raised will be tallied up for visitors to follow its success. The size of the global crowdfunding market is growing and the largest markets are North America and Asia.