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CrowdLending (Business) - Malawi

Malawi

The total transaction value in the Crowdlending (Business) market market in Malawi is expected to hit US$0.0 by 2024.
When comparing globally, it is evident that China leads with a transaction value of US$15,970m in 2024.
Malawi's CrowdLending market is gaining traction as local businesses turn to alternative capital raising methods amidst traditional financing challenges.

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

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Analyst Opinion

The CrowdLending (Business) market in Malawi is experiencing significant growth and development, driven by several factors.

Customer preferences: In Malawi, businesses are increasingly turning to CrowdLending as a source of financing. This is due to the convenience and accessibility of online platforms, which allow businesses to connect directly with lenders and access funding quickly. Additionally, CrowdLending offers businesses more flexibility in terms of loan terms and interest rates, allowing them to find the best financing options for their specific needs.

Trends in the market: One of the key trends in the CrowdLending market in Malawi is the rise of peer-to-peer lending platforms. These platforms connect individual lenders with businesses in need of funding, bypassing traditional financial institutions. This trend is driven by the desire for businesses to access funding quickly and easily, without the need to go through a lengthy loan application process. Peer-to-peer lending also offers lenders the opportunity to earn higher returns on their investments compared to traditional savings accounts or other investment options. Another trend in the market is the increasing focus on social impact lending. Many businesses in Malawi are social enterprises or have a strong social mission, and they are seeking funding from lenders who share their values. CrowdLending platforms are responding to this demand by offering dedicated social impact lending options, allowing businesses to access funding from lenders who are specifically interested in supporting socially responsible initiatives.

Local special circumstances: Malawi is a country with a high level of financial exclusion, with many businesses and individuals lacking access to traditional banking services. CrowdLending provides an alternative source of financing for these businesses, allowing them to access the funding they need to grow and expand. Additionally, CrowdLending platforms are often more willing to lend to businesses in rural or remote areas, where traditional financial institutions may be hesitant to provide financing.

Underlying macroeconomic factors: The development of the CrowdLending market in Malawi is also influenced by underlying macroeconomic factors. The country has a relatively stable economy, with steady GDP growth and low inflation. This provides a favorable environment for businesses to seek financing and invest in growth opportunities. Additionally, the government of Malawi has recognized the importance of supporting small and medium-sized enterprises (SMEs) as a driver of economic growth, and has implemented policies to promote access to financing for these businesses. This supportive regulatory environment has contributed to the growth of the CrowdLending market in the country. Overall, the CrowdLending (Business) market in Malawi is experiencing significant growth and development, driven by customer preferences for convenience and flexibility, as well as the rise of peer-to-peer lending platforms and the focus on social impact lending. The local special circumstances of financial exclusion and the supportive regulatory environment, combined with the underlying macroeconomic factors of a stable economy and government support for SMEs, are further fueling the growth of the market.

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.