CrowdLending (Business) - Mexico | Statista Market Forecast

The total transaction value in the Crowdlending (Business) market market in Mexico is expected to reach US$1.60m in 2024.
When compared globally, it is evident that China leads with a transaction value of US$16bn in 2024.
In Mexico, CrowdLending platforms are gaining traction as a popular alternative for capital raising among small and medium enterprises.

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 Mexico has been experiencing significant growth in recent years.

Customer preferences: Mexican businesses are increasingly turning to CrowdLending as a source of funding due to several reasons. Firstly, traditional lending options such as bank loans can be difficult to access for small and medium-sized enterprises (SMEs), which make up a large portion of the Mexican business landscape. CrowdLending platforms provide a more accessible and streamlined process for obtaining financing, making it an attractive option for these businesses. Additionally, the flexibility and variety of loan terms offered by CrowdLending platforms allow businesses to find the funding that best suits their needs.

Trends in the market: One of the key trends in the CrowdLending market in Mexico is the emergence of specialized platforms catering to specific industries. These platforms focus on providing funding for businesses in sectors such as agriculture, technology, and renewable energy. This trend reflects the growing demand for industry-specific financing options and the recognition of the unique needs of businesses in different sectors. Furthermore, the use of technology and data analytics in the CrowdLending process is also on the rise. Platforms are leveraging advanced algorithms and machine learning to assess creditworthiness and determine loan terms, resulting in more accurate risk assessment and faster loan approval processes.

Local special circumstances: The Mexican business landscape is characterized by a large number of SMEs, which often face challenges in accessing traditional financing options. This has created a favorable environment for the growth of the CrowdLending market, as these platforms offer a viable alternative for SMEs to secure funding. Additionally, the government has implemented initiatives to support the development of the fintech sector, including CrowdLending platforms. This has further contributed to the growth of the market by creating a supportive regulatory framework and fostering innovation in the sector.

Underlying macroeconomic factors: The growth of the CrowdLending market in Mexico is also influenced by underlying macroeconomic factors. The country has experienced steady economic growth in recent years, which has created a favorable environment for businesses to thrive and seek financing. Additionally, the low interest rate environment has made traditional lending options less attractive for businesses, leading them to explore alternative sources of funding such as CrowdLending. The increasing adoption of digital technology and internet connectivity in Mexico has also played a role in the growth of the market, as it has made it easier for businesses to access and utilize CrowdLending platforms.

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.