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CrowdLending (Business) - Finland

Finland

The total transaction value in the Crowdlending (Business) market market is expected to reach US$11.3m in Finland by 2024.
When compared globally, it is evident that China is projected to have the highest transaction value, estimated at US$15,970m in 2024.
In Finland, CrowdLending platforms are gaining popularity as a preferred method for businesses to raise capital in the current market landscape.

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

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Analyst Opinion

CrowdLending (Business) market in Finland is experiencing significant growth and development.

Customer preferences: Finland has a strong entrepreneurial culture, with a high number of small and medium-sized enterprises (SMEs) operating in the country. These businesses often face challenges in accessing traditional bank loans due to stringent lending criteria. As a result, many Finnish businesses are turning to crowd lending as an alternative source of financing. Crowd lending offers a more flexible and accessible funding option for SMEs, allowing them to bypass the traditional banking system and connect directly with individual lenders.

Trends in the market: One of the key trends in the CrowdLending (Business) market in Finland is the increasing popularity of peer-to-peer lending platforms. These platforms connect borrowers directly with individual lenders, eliminating the need for intermediaries such as banks. This not only streamlines the lending process but also reduces costs for both borrowers and lenders. In addition, peer-to-peer lending platforms offer a wider range of loan options and more competitive interest rates compared to traditional banks, making them an attractive choice for Finnish businesses. Another trend in the market is the growing interest in sustainable and socially responsible investing. Many Finnish businesses are looking for funding options that align with their values and contribute to positive social and environmental impact. Crowd lending platforms in Finland are responding to this demand by offering loan options that support sustainable and socially responsible projects. This trend is driven by both consumer demand for ethical investments and government initiatives to promote sustainable business practices.

Local special circumstances: Finland has a well-developed digital infrastructure, with high internet penetration and widespread use of online banking services. This has created a favorable environment for the growth of crowd lending platforms, as it allows for easy and secure online transactions. In addition, Finland has a strong regulatory framework for crowdfunding, providing investor protection and ensuring transparency in the lending process. This regulatory environment has helped to build trust and confidence among both borrowers and lenders, further driving the growth of the CrowdLending (Business) market in Finland.

Underlying macroeconomic factors: The Finnish economy has been steadily recovering from the global financial crisis, with stable economic growth and low unemployment rates. This positive economic environment has created favorable conditions for business expansion and investment, driving the demand for financing options. At the same time, traditional banks in Finland have become more cautious in their lending practices, making it more difficult for businesses to access loans. This has created a gap in the market that crowd lending platforms are filling, providing much-needed financing options for Finnish businesses. In conclusion, the CrowdLending (Business) market in Finland is experiencing significant growth and development due to customer preferences for flexible and accessible financing options, the increasing popularity of peer-to-peer lending platforms, the demand for sustainable and socially responsible investments, the favorable digital infrastructure and regulatory environment, and the underlying macroeconomic factors driving the demand for financing options.

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.