CrowdLending (Business) - Chile | Statista Market Forecast

The total transaction value in the Crowdlending (Business) market market in Chile is expected to reach US$16.05m by 2024.
When looking at a global scale, it is evident that China leads with a transaction value of US$16bn in 2024.
Chile's CrowdLending market in Capital Raising is seeing a surge in tech startups seeking alternative financing options for expansion.

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 Chile is experiencing significant growth and development.

Customer preferences: Chilean businesses are increasingly turning to CrowdLending as a source of funding due to its convenience and accessibility. This form of financing allows businesses to bypass traditional banks and connect directly with individual lenders, providing them with greater flexibility and potentially lower interest rates. Additionally, the rise of online platforms has made it easier for businesses to access a larger pool of potential lenders, increasing their chances of securing funding.

Trends in the market: One of the key trends in the CrowdLending market in Chile is the increasing number of platforms offering business loans. As more businesses recognize the benefits of CrowdLending, new platforms are emerging to cater to this demand. This trend is driven by the success of existing platforms, which have demonstrated the viability of the business model and attracted investors and borrowers alike. Another trend in the market is the growing popularity of peer-to-peer lending. In this model, individual lenders directly fund business loans, cutting out the intermediaries and reducing costs for both borrowers and lenders. This trend is fueled by the trust and transparency that peer-to-peer lending offers, as borrowers can see exactly who is funding their loan and lenders can assess the creditworthiness of borrowers.

Local special circumstances: Chile's strong entrepreneurial culture and supportive government policies have created a favorable environment for the growth of the CrowdLending market. The government has implemented initiatives to promote entrepreneurship and innovation, which has led to an increase in the number of small and medium-sized enterprises seeking funding. CrowdLending provides these businesses with an alternative financing option that is often more accessible than traditional bank loans.

Underlying macroeconomic factors: The growth of the CrowdLending market in Chile is also influenced by macroeconomic factors. The country has experienced steady economic growth in recent years, which has led to an increase in business activity and the demand for financing. Additionally, low interest rates have made borrowing more attractive for businesses, further driving the demand for CrowdLending. In conclusion, the CrowdLending market in Chile is experiencing growth and development due to customer preferences for convenience and accessibility, as well as the emergence of new platforms and the popularity of peer-to-peer lending. The country's supportive government policies and favorable macroeconomic factors have also contributed to the growth of the market.

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.