CrowdLending (Business) - Jordan | Statista Market Forecast

The total transaction value in the Crowdlending (Business) market market in Jordan is forecasted to reach US$8.25m in 2024.
When compared globally, it is evident that China leads with the highest transaction value, expected to reach US$16bn in 2024.
Jordan's CrowdLending market is gaining traction among local businesses seeking alternative capital-raising options amidst evolving financial landscapes.

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 Jordan has been experiencing significant growth in recent years.

Customer preferences: Jordanian businesses are increasingly turning to CrowdLending platforms as a source of funding. This is due to several factors. Firstly, CrowdLending offers a more streamlined and efficient process compared to traditional lending institutions. Businesses can easily access funds without the need for extensive paperwork or lengthy approval processes. Additionally, CrowdLending platforms often offer competitive interest rates, making it an attractive option for businesses looking to secure affordable financing.

Trends in the market: One of the key trends in the CrowdLending (Business) market in Jordan is the rise of sector-specific platforms. These platforms cater to businesses operating in specific industries, such as technology, healthcare, and agriculture. This trend is driven by the increasing demand for specialized funding options among businesses in these sectors. Sector-specific platforms offer tailored financing solutions and expertise, which can be highly beneficial for businesses looking to expand or innovate within their respective industries. Another trend in the market is the growing popularity of peer-to-peer lending. This model allows businesses to borrow directly from individual lenders, rather than through a centralized platform. Peer-to-peer lending offers businesses more flexibility and personalized terms, as they can negotiate directly with lenders. This trend is particularly appealing to small and medium-sized enterprises (SMEs) that may have difficulty accessing funding through traditional channels.

Local special circumstances: The CrowdLending (Business) market in Jordan is shaped by several local special circumstances. Firstly, the country has a strong entrepreneurial culture, with a high number of startups and SMEs. These businesses often face challenges when it comes to accessing financing, making CrowdLending an attractive alternative. Additionally, Jordan has a relatively young population, with a large percentage of tech-savvy individuals. This demographic is more likely to embrace digital platforms and online lending, contributing to the growth of the CrowdLending market.

Underlying macroeconomic factors: The growth of the CrowdLending (Business) market in Jordan can be attributed to several underlying macroeconomic factors. Firstly, the country has a stable and growing economy, which provides a favorable environment for businesses seeking funding. Additionally, the government has implemented initiatives to support entrepreneurship and innovation, including the establishment of startup incubators and funding programs. These initiatives have created a conducive environment for businesses to thrive and seek alternative funding options such as CrowdLending. In conclusion, the CrowdLending (Business) market in Jordan is experiencing significant growth due to customer preferences for streamlined and efficient financing options, as well as the rise of sector-specific platforms and peer-to-peer lending. Local special circumstances, such as a strong entrepreneurial culture and a tech-savvy population, further contribute to the market's development. Underlying macroeconomic factors, including a stable economy and government support for entrepreneurship, also play a role in driving the growth of the CrowdLending market in Jordan.

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.