CrowdLending (Business) - EAEU | Statista Market Forecast

The total transaction value in the Crowdlending (Business) market market in EAEU is expected to reach US$2.80m in 2024.
When compared globally, it is evident that China leads with a transaction value of US$16bn in 2024.
In the EAEU, CrowdLending platforms are gaining traction as a popular alternative for businesses seeking capital raising opportunities in the region.

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 EAEU has been experiencing significant growth in recent years, driven by customer preferences for alternative financing options, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In the CrowdLending (Business) market, customers in the EAEU region have shown a growing preference for online platforms that connect borrowers and lenders directly. This preference is driven by the convenience and efficiency of the online lending process, as well as the potential for higher returns compared to traditional financial institutions. Additionally, customers appreciate the transparency and flexibility offered by CrowdLending platforms, as they can choose the specific projects or businesses they want to support.

Trends in the market: One of the key trends in the CrowdLending (Business) market in the EAEU region is the increasing number of platforms entering the market. This trend is driven by the growing demand for alternative financing options and the success of existing platforms. As more platforms enter the market, competition is intensifying, leading to innovation and improved services for both borrowers and lenders. Additionally, there is a trend towards specialization, with platforms focusing on specific industries or types of businesses, catering to the unique needs of different sectors.

Local special circumstances: The EAEU region is characterized by a diverse business landscape, with companies operating in various industries and sectors. This diversity creates opportunities for CrowdLending platforms to cater to specific niches and provide tailored financing solutions. Furthermore, the region has a large number of small and medium-sized enterprises (SMEs) that often face challenges in accessing traditional bank loans. CrowdLending platforms fill this gap by offering alternative financing options to SMEs, enabling them to grow and expand their operations.

Underlying macroeconomic factors: The development of the CrowdLending (Business) market in the EAEU region is also influenced by underlying macroeconomic factors. Economic growth and stability play a crucial role in driving demand for financing and investment opportunities. As the EAEU economies continue to grow and diversify, businesses are seeking alternative sources of funding to support their expansion plans. Additionally, low interest rates in the region have made traditional bank loans less attractive for both borrowers and lenders, further fueling the demand for CrowdLending platforms. In conclusion, the CrowdLending (Business) market in the EAEU region is experiencing significant growth due to customer preferences for alternative financing options, trends in the market, local special circumstances, and underlying macroeconomic factors. As more customers and businesses turn to online lending platforms, the market is expected to continue expanding, driving innovation and providing new opportunities for both borrowers and lenders.

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.