CrowdLending (Business) - Singapore

The country in Singapore is expected to see a total transaction value of US$9.14m in the Crowdlending (Business) market market by 2025.
When comparing globally, it is evident that China will lead with a transaction value of US$17bn in the same year.
Singapore's CrowdLending market is experiencing a surge in tech-based platforms, attracting both local investors and businesses seeking alternative capital raising solutions.

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)

Digital Capital Raising: market data & analysis

The CrowdLending market within the Digital Capital Raising sector in Singapore is experiencing moderate growth. Factors influencing this growth include increased investor interest, regulatory support, and the rising demand for alternative financing options among businesses and startups.

Customer preferences: Investors in Singapore are increasingly gravitating towards CrowdLending platforms as a viable alternative to traditional financing methods. This shift is influenced by a growing appetite for socially responsible investing, with many individuals keen to support local businesses and startups that align with their values. Additionally, the rise of digital literacy among younger demographics has facilitated a broader acceptance of online lending solutions. As a result, there is heightened engagement in peer-to-peer lending, reflecting a cultural shift towards community-oriented financial practices.

Trends in the market: In Singapore, the CrowdLending market is experiencing a significant surge as investors increasingly seek alternative financing options that emphasize community support and social responsibility. This trend is driven by a younger, digitally savvy demographic that values transparency and ethical investing. Furthermore, local businesses are leveraging these platforms to access capital more efficiently, fostering a more inclusive financial ecosystem. As the market evolves, stakeholders, including regulators and platform operators, must adapt to ensure sustainable growth, enhance user trust, and maintain compliance with emerging financial regulations.

Local special circumstances: In Singapore, the CrowdLending market is thriving, fueled by a strong emphasis on innovation and technology adoption, which is characteristic of its digital landscape. The city-state's robust regulatory framework fosters a secure environment for investors and borrowers alike, enhancing trust in these platforms. Additionally, Singapore's multicultural society encourages diverse investment preferences, further enriching the CrowdLending ecosystem. As local enterprises increasingly turn to these platforms for financing, the focus on sustainability and social impact aligns with the values of the community, propelling market growth.

Underlying macroeconomic factors: The CrowdLending market in Singapore is significantly shaped by macroeconomic factors such as global economic stability, national GDP growth, and the government’s proactive fiscal policies. A resilient economy encourages consumer confidence, leading to increased participation in digital capital raising platforms. Furthermore, low interest rates globally enhance the appeal of alternative financing options like CrowdLending, making them attractive to both borrowers and investors. Additionally, Singapore’s strategic focus on innovation and digital transformation, supported by government initiatives, further stimulates market activity. As sustainability gains traction, the alignment of CrowdLending with green financing trends also attracts socially conscious investors, bolstering growth in this sector.

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 Finance 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.

CrowdLending (Business) - Singapore

Capital Raised

Key Players

Average Deal Size

Global Comparison

Number of Deals

Analyst Opinion

Methodology

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