Market Insights Financial Capital Raising Digital Capital Raising

CrowdLending (Business) - South America

South America

The total transaction value in the Crowdlending (Business) market market in South America is expected to hit US$28.62m by 2024.
When comparing globally, it is evident that China leads with a transaction value of US$15,970m by 2024.
In South America, CrowdLending in the Capital Raising market is gaining traction as a viable alternative for businesses seeking funding.

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

Market

Region

Region comparison

Currency

Analyst Opinion

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

Customer preferences: In South America, businesses are increasingly turning to CrowdLending platforms as a source of funding. This is driven by several factors, including the ease and convenience of accessing capital through online platforms. Additionally, businesses are attracted to the competitive interest rates offered by CrowdLending platforms, which can be more favorable than traditional bank loans.

Trends in the market: One of the key trends in the CrowdLending market in South America is the increasing number of platforms catering specifically to businesses. These platforms provide a dedicated space for businesses to connect with potential lenders, making it easier for them to secure the funding they need. Furthermore, there is a growing trend of businesses using CrowdLending platforms to fund specific projects or initiatives, rather than seeking traditional loans. This allows businesses to have more control over their funding and tailor it to their specific needs.

Local special circumstances: South America is a region with a diverse and vibrant business landscape. Many businesses in the region are small and medium-sized enterprises (SMEs) that may have difficulty accessing traditional financing options. CrowdLending platforms provide an alternative solution for these businesses, allowing them to access capital without the need for extensive collateral or a long credit history. Additionally, the rise of digital technology and internet connectivity in South America has made it easier for businesses to connect with potential lenders through online platforms.

Underlying macroeconomic factors: The development of the CrowdLending market in South America is also influenced by underlying macroeconomic factors. For example, the region has experienced periods of economic volatility and uncertainty, which can make it challenging for businesses to secure traditional financing. CrowdLending platforms offer a more flexible and accessible option for businesses in these circumstances. Additionally, the relatively high interest rates offered by traditional banks in some countries in South America make CrowdLending platforms an attractive alternative for businesses seeking more competitive rates. In conclusion, the CrowdLending (Business) market in South America is experiencing growth and development as businesses increasingly turn to online platforms for funding. The convenience, competitive interest rates, and flexibility offered by CrowdLending platforms are driving this trend. Additionally, the unique characteristics of the South American business landscape, such as the prevalence of SMEs and economic volatility, contribute to the popularity of CrowdLending as an alternative financing option.

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.