CrowdLending (Business) - Greece | Statista Market Forecast

The projected total transaction value in the Crowdlending (Business) market market in Greece is expected to reach US$7.78m in 2024.
When comparing globally, it is evident that China leads with the highest transaction value of US$16bn in 2024.
In Greece, the CrowdLending market for Capital Raising is gaining traction among small businesses seeking alternative funding options amidst economic challenges.

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 Greece has witnessed significant growth in recent years, driven by changing customer preferences and favorable local circumstances.

Customer preferences: In Greece, businesses are increasingly turning to CrowdLending platforms as a source of financing due to the ease and convenience it offers. CrowdLending provides an alternative to traditional bank loans, allowing businesses to access funding quickly and without the need for extensive paperwork or collateral. This appeals to small and medium-sized enterprises (SMEs) that may struggle to meet the strict requirements of traditional lenders. Additionally, the ability to connect directly with individual lenders gives businesses a sense of transparency and control over the lending process.

Trends in the market: One of the key trends in the CrowdLending (Business) market in Greece is the rise of peer-to-peer (P2P) lending platforms. These platforms connect borrowers directly with individual lenders, cutting out the middleman and reducing costs. P2P lending has gained popularity in Greece due to its ability to offer competitive interest rates to borrowers and attractive returns to lenders. This trend is expected to continue as more businesses recognize the benefits of P2P lending and as the regulatory environment becomes more favorable. Another trend in the market is the increasing diversification of lending platforms. While initially, most CrowdLending platforms in Greece focused on specific industries or sectors, there has been a shift towards platforms that cater to a wider range of businesses. This diversification allows businesses from various sectors to access funding, promoting economic growth and innovation.

Local special circumstances: Greece has faced significant economic challenges in recent years, including a prolonged recession and a debt crisis. This has led to a tightening of credit conditions, making it difficult for businesses to secure financing through traditional channels. CrowdLending has emerged as a viable alternative, providing businesses with much-needed access to capital. The government has also recognized the potential of CrowdLending to stimulate economic growth and has introduced regulatory reforms to encourage its development.

Underlying macroeconomic factors: The growth of the CrowdLending (Business) market in Greece is also influenced by underlying macroeconomic factors. The country's economic recovery, albeit slow, has created a more favorable environment for businesses and investors. As the economy continues to stabilize, businesses are becoming more confident in seeking financing options, including CrowdLending. Additionally, low-interest rates in Greece have made borrowing more affordable, further driving demand for CrowdLending services. In conclusion, the CrowdLending (Business) market in Greece is experiencing significant growth due to changing customer preferences, favorable local circumstances, and underlying macroeconomic factors. The rise of P2P lending platforms and the diversification of lending options are key trends in the market. The economic challenges faced by Greece in recent years have also contributed to the growth of CrowdLending as businesses seek alternative sources of financing. As the economy continues to recover and regulatory reforms are implemented, the CrowdLending (Business) market in Greece is expected to further expand.

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.