CrowdLending (Business) - China | Statista Market Forecast

The total transaction value in the Crowdlending (Business) market market is forecasted to hit US$15.97bn in 2024.
When compared globally, China is expected to reach the highest transaction value of US$15.97bn in 2024.
China's CrowdLending market is experiencing a surge in capital raising activities, with tech companies leading the trend in seeking alternative funding sources.

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 China is witnessing significant growth and development.

Customer preferences: Chinese businesses are increasingly turning to CrowdLending platforms as a source of financing due to the ease and convenience it offers. With traditional banks imposing strict lending criteria and lengthy approval processes, many small and medium-sized enterprises (SMEs) find it difficult to secure loans. CrowdLending platforms provide an alternative solution by connecting borrowers directly with individual investors, offering faster access to funds and more flexible lending terms.

Trends in the market: One of the key trends in the CrowdLending (Business) market in China is the rise of peer-to-peer (P2P) lending platforms. These platforms act as intermediaries, matching borrowers with lenders, and have gained popularity due to their user-friendly interfaces and lower interest rates compared to traditional financial institutions. Additionally, the increasing adoption of mobile technology in China has further facilitated the growth of CrowdLending platforms, allowing borrowers and lenders to connect anytime, anywhere. Another trend in the market is the emergence of specialized CrowdLending platforms catering to specific industries or sectors. These platforms provide tailored financing solutions to businesses operating in sectors such as real estate, agriculture, and technology. By focusing on specific industries, these platforms are able to better understand the needs and challenges faced by businesses, and provide customized lending options.

Local special circumstances: China's large population and rapid urbanization have created a favorable environment for the growth of the CrowdLending (Business) market. The country is home to a vast number of SMEs that require access to capital for expansion and development. CrowdLending platforms offer a viable solution for these businesses, enabling them to secure financing without the need for collateral or extensive paperwork. Furthermore, the Chinese government has been supportive of the development of the CrowdLending industry. In recent years, regulations have been implemented to ensure the stability and transparency of the market, protecting both borrowers and lenders. This has instilled confidence among participants and encouraged the growth of the industry.

Underlying macroeconomic factors: China's strong economic growth and increasing disposable income have contributed to the growth of the CrowdLending (Business) market. As businesses seek to capitalize on the country's expanding consumer market, they require access to capital for investment in new projects and expansion. CrowdLending platforms provide a convenient and efficient way for businesses to secure funding and fuel their growth. Additionally, the low interest rate environment in China has made borrowing more attractive for businesses. With interest rates at historic lows, CrowdLending platforms offer competitive rates that are often more favorable than those offered by traditional financial institutions. This has further incentivized businesses to turn to CrowdLending as a source of financing. In conclusion, the CrowdLending (Business) market in China is experiencing rapid growth and development due to customer preferences for faster and more flexible financing options, the rise of P2P lending platforms, the emergence of specialized platforms, favorable local circumstances, and underlying macroeconomic factors such as strong economic growth and low interest rates.

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.