CrowdLending (Business) - New Zealand

New Zealand

Highlights

The total transaction value in the Crowdlending (Business) market market in New Zealand is expected to reach US$5.35m by 2024.
When compared globally, it is evident that China leads with a projected transaction value of US$16bn in 2024.
In New Zealand, CrowdLending platforms are gaining popularity among small businesses seeking alternative capital raising options in the financial market.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The CrowdLending (Business) market in New Zealand is experiencing significant growth and development in recent years.

Customer preferences: Businesses in New Zealand are increasingly turning to crowd lending as a source of financing. This is driven by several factors, including the ease and convenience of accessing funds through online platforms, the ability to reach a large pool of potential lenders, and the potential for lower interest rates compared to traditional bank loans. Additionally, crowd lending offers businesses the opportunity to engage with their customers and supporters, creating a sense of community and loyalty.

Trends in the market: One of the key trends in the CrowdLending (Business) market in New Zealand is the rise of peer-to-peer lending platforms. These platforms connect businesses directly with individual lenders, bypassing traditional financial institutions. This trend is fueled by the increasing trust and confidence in online platforms, as well as the desire for businesses to have more control over their financing options. Peer-to-peer lending platforms also offer a more streamlined and efficient process compared to traditional banks, allowing businesses to access funds more quickly. Another trend in the market is the emergence of specialized crowd lending platforms catering to specific industries or sectors. These platforms understand the unique needs and challenges of businesses in these sectors and are able to provide tailored financing solutions. For example, there are crowd lending platforms that focus on providing funding for renewable energy projects, agricultural businesses, or technology startups. This trend reflects the growing demand for niche financing options and the recognition that one size does not fit all in the business lending landscape.

Local special circumstances: New Zealand has a vibrant and dynamic small and medium-sized enterprise (SME) sector, which forms the backbone of the country's economy. These businesses often face challenges in accessing traditional financing options, particularly from banks that may have stricter lending criteria. Crowd lending provides an alternative source of funding for these businesses, allowing them to grow and thrive. Additionally, New Zealand has a strong entrepreneurial culture and a supportive ecosystem for startups and innovative businesses. Crowd lending platforms play a crucial role in supporting these ventures by providing the necessary capital to fuel their growth.

Underlying macroeconomic factors: The development of the CrowdLending (Business) market in New Zealand is also influenced by underlying macroeconomic factors. The low interest rate environment in the country has made borrowing more affordable, encouraging businesses to seek financing options. Additionally, the increasing digitization of the economy and the rise of online platforms have made crowd lending more accessible to businesses of all sizes. The government of New Zealand has also recognized the importance of alternative financing options and has implemented supportive policies and regulations to foster the growth of the crowd lending industry. In conclusion, the CrowdLending (Business) market in New Zealand is experiencing significant growth and development, driven by customer preferences for convenience and access to a larger pool of lenders. The rise of peer-to-peer lending platforms and specialized crowd lending platforms are key trends in the market. Local special circumstances, such as the vibrant SME sector and the supportive ecosystem for startups, contribute to the growth of crowd lending in New Zealand. Underlying macroeconomic factors, including low interest rates and government support, further fuel the development of the market.

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.