CrowdLending (Business) - Australia & Oceania

The Crowdlending (Business) market market in Australia & Oceania is projected to reach a total transaction value of US$37.68m in 2024.
When compared on a global scale, China leads with a transaction value of US$16bn in the same year.
Australia's CrowdLending market is experiencing a surge in platforms offering diverse investment opportunities, attracting both local and international investors.

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 Australia & Oceania has been experiencing significant growth in recent years.

Customer preferences: In Australia & Oceania, businesses are increasingly turning to crowd lending as a source of funding. This is due to the ease and convenience of accessing capital through online platforms, as well as the competitive interest rates offered by crowd lenders. Additionally, crowd lending provides businesses with an alternative to traditional bank loans, which can be difficult to obtain for small and medium-sized enterprises (SMEs).

Trends in the market: One of the key trends in the CrowdLending (Business) market in Australia & Oceania is the rise of peer-to-peer lending platforms. These platforms connect borrowers directly with lenders, cutting out the middleman and reducing costs for both parties. This trend is driven by the increasing popularity of online lending platforms, which offer a streamlined and efficient borrowing process. Another trend in the market is the growth of specialized crowd lending platforms. These platforms focus on specific industries or sectors, such as real estate or renewable energy. By catering to the unique needs of these industries, these platforms are able to attract borrowers and lenders who have a specific interest in those sectors.

Local special circumstances: Australia & Oceania has a strong entrepreneurial culture, with many small businesses and startups looking for funding to grow and expand. Crowd lending provides these businesses with an accessible and flexible source of capital, which is particularly important in a region where traditional funding options may be limited. Additionally, the region has a high level of internet penetration, making it easy for businesses to access crowd lending platforms online.

Underlying macroeconomic factors: The growth of the CrowdLending (Business) market in Australia & Oceania can be attributed to several underlying macroeconomic factors. Firstly, the region has experienced steady economic growth in recent years, creating a favorable environment for businesses to seek funding. Secondly, low interest rates have made traditional borrowing options less attractive, leading businesses to explore alternative sources of funding such as crowd lending. Finally, regulatory frameworks in Australia & Oceania have been supportive of the crowd lending industry, providing a stable and secure environment for lenders and borrowers. Overall, the CrowdLending (Business) market in Australia & Oceania is thriving due to customer preferences for convenient and competitive funding options, as well as the rise of peer-to-peer lending platforms and specialized crowd lending platforms. The region's strong entrepreneurial culture, high internet penetration, and favorable macroeconomic factors have also contributed to the growth of the market. As crowd lending continues to gain popularity, it is expected to play an increasingly important role in the financing landscape of Australia & Oceania.

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.