CrowdLending (Business) - Brazil | Statista Market Forecast

The total transaction value in the Crowdlending (Business) market market in Brazil is expected to reach US$7.23m by 2024.
When compared globally, it is evident that China leads with a transaction value of US$16bn in 2024.
Brazil's CrowdLending market in Capital Raising is experiencing a surge in investor interest, driven by growing confidence in the country's economic stability.

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 Brazil has been experiencing significant growth in recent years.

Customer preferences: Brazilian businesses are increasingly turning to CrowdLending platforms as a source of financing. This is due to the convenience and accessibility of these platforms, which allow businesses to access funding quickly and easily. Additionally, CrowdLending platforms often offer competitive interest rates, making them an attractive option for businesses looking for affordable financing options.

Trends in the market: One of the key trends in the CrowdLending market in Brazil is the increasing number of platforms available to businesses. As the market continues to grow, more and more platforms are entering the industry, offering a wider range of options for businesses to choose from. This increased competition is driving innovation and improvement in the industry, resulting in better services and more favorable terms for borrowers. Another trend in the market is the growing popularity of peer-to-peer lending. This form of CrowdLending allows businesses to borrow directly from individual investors, bypassing traditional financial institutions. This trend is driven by the desire for more personalized and flexible financing options, as well as the potential for lower interest rates.

Local special circumstances: Brazil's economy has been experiencing a period of economic recovery, following a recession in recent years. This has created a favorable environment for the development of the CrowdLending market, as businesses are seeking financing to support their growth and expansion plans. Additionally, the Brazilian government has implemented policies to support small and medium-sized enterprises (SMEs), which make up a significant portion of the businesses accessing CrowdLending platforms.

Underlying macroeconomic factors: Several macroeconomic factors are contributing to the development of the CrowdLending market in Brazil. Firstly, the low interest rate environment in the country is encouraging businesses to seek alternative financing options, such as CrowdLending, as traditional bank loans may be less attractive due to higher interest rates. Additionally, the increasing digitization of the financial sector in Brazil is making it easier for businesses to access CrowdLending platforms, as they can now apply for loans online and receive funds quickly. In conclusion, the CrowdLending market in Brazil is experiencing significant growth, driven by customer preferences for convenient and affordable financing options. The increasing number of platforms and the popularity of peer-to-peer lending are key trends in the market. The favorable economic environment and government support for SMEs are local special circumstances that are contributing to the development of the market. Finally, the low interest rate environment and the digitization of the financial sector are underlying macroeconomic factors that are fueling the growth of the CrowdLending market in Brazil.

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.