Market Insights Financial Capital Raising Digital Capital Raising

CrowdLending (Business) - Laos

Laos

The country in Laos is expected to see the total transaction value in the Crowdlending (Business) market market reach US$0.0 by 2024.
When comparing globally, it is evident that China leads with a projected transaction value of US$15,970m in the same year.
Laos' CrowdLending market is gaining traction among local businesses seeking alternative capital raising options in a growing economy.

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

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Analyst Opinion

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

Customer preferences: Laos, a landlocked country in Southeast Asia, is witnessing a shift in customer preferences towards alternative financing options such as CrowdLending. This can be attributed to several factors including limited access to traditional banking services, a growing entrepreneurial spirit, and the increasing demand for capital among small and medium-sized enterprises (SMEs).

Trends in the market: One of the key trends in the CrowdLending market in Laos is the rising number of platforms catering specifically to business lending. These platforms connect borrowers with investors, providing a streamlined and efficient way to access funding. This trend is fueled by the increasing number of SMEs in Laos seeking financing options to support their growth and expansion plans. Another trend in the market is the emergence of peer-to-peer (P2P) lending platforms. These platforms allow individuals to lend money directly to businesses, bypassing traditional financial intermediaries. P2P lending offers a more inclusive and accessible financing option for both borrowers and lenders, particularly in rural areas where access to formal banking services is limited.

Local special circumstances: Laos, being a developing country, faces several unique circumstances that contribute to the development of the CrowdLending market. The country has a large unbanked population, with limited access to formal financial services. This creates a significant market opportunity for alternative financing options like CrowdLending, which can reach underserved segments of the population. Additionally, Laos has a vibrant and growing entrepreneurial ecosystem, with many startups and SMEs looking for funding to support their business ideas. CrowdLending provides an alternative to traditional bank loans, which are often difficult to access for small businesses without a long credit history or collateral.

Underlying macroeconomic factors: The development of the CrowdLending market in Laos is also influenced by underlying macroeconomic factors. The country has been experiencing steady economic growth in recent years, driven by sectors such as manufacturing, tourism, and agriculture. This growth has created a demand for financing among businesses, particularly those in the SME sector. CrowdLending platforms are able to meet this demand by providing a flexible and accessible source of funding. Furthermore, the government of Laos has recognized the importance of supporting SMEs and promoting entrepreneurship as drivers of economic development. This has led to the implementation of policies and initiatives aimed at facilitating access to finance for small businesses, including the promotion of alternative financing options like CrowdLending. In conclusion, the CrowdLending (Business) market in Laos is developing rapidly due to customer preferences for alternative financing options, the emergence of business-focused lending platforms, unique local circumstances, and underlying macroeconomic factors. As the market continues to grow, it is expected to play a crucial role in supporting the growth and development of the SME sector in Laos.

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.