Market Insights Financial Capital Raising Digital Capital Raising

CrowdLending (Business) - Mongolia

Mongolia

The total transaction value in the Crowdlending (Business) market market in Mongolia is expected to reach US$0.0 by 2024.
When comparing globally, it is evident that China leads with a transaction value of US$15,970m in 2024.
In Mongolia, CrowdLending platforms are gaining traction as a popular alternative for capital raising among small businesses in the current financial landscape.

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

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Analyst Opinion

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

Customer preferences: In Mongolia, businesses are increasingly turning to CrowdLending as a source of financing. This is driven by the convenience and accessibility of online platforms, which allow businesses to connect with a large pool of potential lenders. Additionally, CrowdLending offers businesses the opportunity to secure funding quickly and easily, without the need for extensive paperwork or collateral.

Trends in the market: One of the key trends in the CrowdLending market in Mongolia is the emergence of specialized platforms catering specifically to the needs of businesses. These platforms offer features such as higher loan amounts and longer repayment terms, which are more suitable for the financing needs of businesses compared to platforms that primarily serve individual borrowers. This trend reflects the growing demand for tailored financing solutions in the business sector. Another trend in the market is the increasing use of technology and data analytics in the lending process. CrowdLending platforms in Mongolia are leveraging technology to streamline the loan application and approval process, as well as to assess the creditworthiness of borrowers. This allows for faster and more accurate lending decisions, benefiting both borrowers and lenders.

Local special circumstances: Mongolia is a country with a relatively small population and a large rural area. Traditional banking services may not be easily accessible to businesses in remote areas, making CrowdLending an attractive alternative. The online nature of CrowdLending platforms allows businesses located anywhere in the country to access financing, bridging the gap between urban and rural areas.

Underlying macroeconomic factors: The development of the CrowdLending market in Mongolia is also influenced by macroeconomic factors. The country has experienced rapid economic growth in recent years, driven by sectors such as mining and agriculture. This growth has created a demand for financing among businesses, leading to the rise of alternative financing options like CrowdLending. Furthermore, Mongolia has a relatively young and tech-savvy population, which is comfortable with online transactions and digital platforms. This demographic factor contributes to the growth of the CrowdLending market, as businesses and lenders are more willing to embrace online lending solutions. In conclusion, the CrowdLending (Business) market in Mongolia is developing rapidly due to customer preferences for convenience and accessibility, the emergence of specialized platforms, the use of technology and data analytics, local special circumstances such as the need for financing in remote areas, and underlying macroeconomic factors such as rapid economic growth and a young, tech-savvy population.

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.