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CrowdLending (Business) - Eastern Asia

Eastern Asia

The Crowdlending (Business) market market in Eastern Asia is anticipated to achieve a total transaction value of US$16.64bn by 2024.
When comparing globally, China is expected to lead with a transaction value of US$15,970m in 2024.
In South Korea, the CrowdLending market is flourishing, with a growing number of businesses turning to this alternative capital raising method.

Key regions: China, United Kingdom, Brazil, Israel, India

Market

Region

Region comparison

Currency

Analyst Opinion

The CrowdLending (Business) market in Eastern Asia has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the growth in the CrowdLending (Business) market in Eastern Asia is the increasing demand for alternative financing options among businesses. Traditional banks have become more stringent in their lending practices, making it difficult for small and medium-sized enterprises (SMEs) to access the capital they need to grow. As a result, businesses are turning to CrowdLending platforms as a viable alternative.

Trends in the market: One of the key trends in the CrowdLending (Business) market in Eastern Asia is the rise of peer-to-peer lending platforms. These platforms connect individual lenders with borrowers, allowing businesses to access capital directly from investors. This trend has gained popularity due to its convenience and the potential for higher returns for lenders. Additionally, there has been a growing interest in sustainable and socially responsible lending in the region. Many businesses are seeking funding for projects that have a positive impact on society or the environment. CrowdLending platforms are well-suited to cater to this demand, as they can connect businesses with investors who share their values.

Local special circumstances: Eastern Asia is home to several countries with rapidly growing economies, such as China, Japan, and South Korea. These countries have a large number of small and medium-sized enterprises (SMEs) that are in need of financing to support their growth. CrowdLending platforms offer an efficient and accessible way for these businesses to access capital, fueling the growth of the market in the region. Furthermore, the high level of technological advancement in Eastern Asia has also contributed to the growth of the CrowdLending (Business) market. The region has a high internet penetration rate and a tech-savvy population, making it easier for businesses and investors to connect through online platforms.

Underlying macroeconomic factors: The growth of the CrowdLending (Business) market in Eastern Asia is also influenced by underlying macroeconomic factors. For example, low interest rates in the region have made traditional savings accounts less attractive for investors. As a result, many individuals are turning to CrowdLending platforms as a way to earn higher returns on their investments. In addition, the region's growing middle class and rising disposable incomes have led to increased consumer spending. This has created a favorable environment for businesses to expand and seek financing through CrowdLending platforms. Overall, the CrowdLending (Business) market in Eastern Asia is experiencing significant growth due to the increasing demand for alternative financing options, the rise of peer-to-peer lending platforms, the interest in sustainable and socially responsible lending, the presence of a large number of SMEs in need of financing, the high level of technological advancement, low interest rates, and the region's growing middle class.

Methodology

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.