Market Insights Financial Capital Raising Digital Capital Raising

CrowdLending (Business) - ASEAN

ASEAN

The projected total transaction value in the Crowdlending (Business) market market for ASEAN is expected to reach US$1.52bn in 2025.
When compared globally, it is evident that China is set to achieve the highest transaction value, reaching US$16,700m in 2025.
In ASEAN, CrowdLending platforms are gaining traction as a popular choice for capital raising among small and medium enterprises.

Key regions: China, United Kingdom, Brazil, Israel, India

Market

Region

Region comparison

Currency

Analyst Opinion

The CrowdLending (Business) market in ASEAN is experiencing significant growth and development.

Customer preferences: Businesses in ASEAN are increasingly turning to crowd lending as a source of funding due to its convenience and accessibility. This financing option allows businesses to bypass traditional financial institutions and directly connect with individual lenders. The flexibility of crowd lending platforms also appeals to businesses, as they can negotiate the terms and conditions of the loan directly with the lenders. Additionally, crowd lending provides an opportunity for businesses to tap into a broader pool of lenders, potentially attracting investors from different countries within the ASEAN region.

Trends in the market: One of the key trends in the crowd lending market in ASEAN is the rise of peer-to-peer (P2P) lending platforms. These platforms connect borrowers directly with lenders, removing the need for intermediaries. P2P lending platforms have gained popularity due to their ability to offer competitive interest rates and quick loan approval processes. This trend is driven by the increasing digitalization of the ASEAN region, with more businesses and individuals embracing online platforms for financial transactions. Another trend in the market is the growing interest in sustainable and socially responsible investments. Businesses in ASEAN are increasingly seeking funding from crowd lending platforms that prioritize environmentally friendly and socially responsible projects. This trend aligns with the global shift towards sustainable financing and reflects the growing awareness and importance of environmental and social issues in the ASEAN region.

Local special circumstances: The crowd lending market in ASEAN is influenced by the diverse economic and regulatory environments across the region. Each country in ASEAN has its own set of regulations governing crowd lending, which can impact the growth and development of the market. Some countries have implemented specific regulations to protect lenders and borrowers, ensuring transparency and fairness in the crowd lending process. However, other countries are still in the process of developing regulations, which can create uncertainties for businesses and investors.

Underlying macroeconomic factors: The growth of the crowd lending market in ASEAN is supported by several macroeconomic factors. The ASEAN region has experienced rapid economic growth in recent years, with a rising middle class and increasing entrepreneurial activity. This has created a demand for financing options beyond traditional banks, leading to the emergence of crowd lending platforms. Furthermore, the digitalization of the ASEAN region has played a significant role in the development of the crowd lending market. The widespread use of smartphones and internet connectivity has made it easier for businesses and individuals to access crowd lending platforms and participate in the lending process. This digital transformation has also facilitated the growth of P2P lending platforms, enabling borrowers and lenders to connect seamlessly. In conclusion, the CrowdLending (Business) market in ASEAN is driven by customer preferences for convenience and accessibility, as well as the rise of P2P lending platforms and the demand for sustainable investments. The market is influenced by local regulations and supported by macroeconomic factors such as economic growth and digitalization.

Methodology

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.