Market Insights Financial Capital Raising Digital Capital Raising

CrowdLending (Business) - Thailand

Thailand

The total transaction value in the Crowdlending (Business) market market in Thailand is expected to reach US$10.06m in 2024.
When comparing globally, it is evident that China leads with a projected transaction value of US$15,970m in 2024.
Thailand's CrowdLending market in Capital Raising is experiencing rapid growth due to increasing investor interest in alternative financing options.

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

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Analyst Opinion

The CrowdLending (Business) market in Thailand has been experiencing significant growth in recent years.

Customer preferences: Thai businesses are increasingly turning to CrowdLending platforms as a source of financing. This is driven by several factors. Firstly, small and medium-sized enterprises (SMEs) in Thailand often face challenges in accessing traditional bank loans due to strict lending criteria and high interest rates. CrowdLending platforms offer an alternative financing option that is more accessible and flexible for these businesses. Additionally, Thai businesses value the speed and convenience of CrowdLending platforms, as the application and approval processes are typically faster compared to traditional banks.

Trends in the market: One of the key trends in the CrowdLending (Business) market in Thailand is the rise of sector-specific platforms. These platforms focus on providing financing to businesses in specific industries, such as agriculture, technology, and real estate. This trend reflects the growing demand for specialized financing solutions tailored to the unique needs of different sectors. By focusing on specific industries, these platforms are able to better understand the risks and opportunities associated with the businesses they serve, leading to more accurate risk assessments and potentially lower interest rates for borrowers. Another trend in the market is the increasing participation of institutional investors. As CrowdLending platforms in Thailand mature, they are attracting interest from institutional investors such as banks, insurance companies, and pension funds. These institutional investors are drawn to the potential returns offered by CrowdLending, as well as the diversification benefits it provides to their investment portfolios. The participation of institutional investors brings additional credibility and stability to the market, which in turn attracts more borrowers and investors.

Local special circumstances: Thailand has a large and vibrant SME sector, which contributes significantly to the country's economy. However, many SMEs struggle to access financing from traditional sources. This is partly due to the dominance of large corporations in the Thai banking sector, which often prioritize lending to established companies with strong credit profiles. CrowdLending platforms provide an alternative avenue for SMEs to access the capital they need to grow and expand their businesses.

Underlying macroeconomic factors: The growth of the CrowdLending (Business) market in Thailand is also influenced by macroeconomic factors. The country has experienced stable economic growth in recent years, which has created a favorable environment for businesses to seek financing. Additionally, the Thai government has implemented initiatives to support SMEs, including providing financial assistance and promoting digital innovation. These initiatives have helped to create awareness and promote the use of alternative financing options such as CrowdLending. In conclusion, the CrowdLending (Business) market in Thailand is growing rapidly due to the preferences of Thai businesses for accessible and flexible financing options, as well as the emergence of sector-specific platforms and the participation of institutional investors. The local special circumstances, such as the challenges faced by SMEs in accessing traditional bank loans, further contribute to the growth of the market. The underlying macroeconomic factors, including stable economic growth and government support for SMEs, also play a role in driving the development of the market.

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.