- One of the key factors driving the growth of the alternative finance market is better returns for investors. The average yield on FDs or 10-year government bonds in developed countries such as the UK and the US is around 1%-3%, and alternative funding platforms such as LendingClub and Funding Circle provide a theoretical average yield of 7%.
- Another key factor driving the growth of the alternative finance market is rapid growth in APAC. For example, the number of SMEs in China was approximately 18.07 million by the end of 2018. Similarly, according to data released by the Ministry of Micro, Small and Medium Enterprises (MSMEs), from March 2020there were 63.3 million (6.33 Crore) SMEs present throughout India.
- High risk of loan default is one of the key challenges that hinders the growth of the alternative finance market. For example, default rates for LendingClub and Prosper Marketplace on loans with repayment periods of three years or more average around 10%-14%. High-risk lenders such as Bondora Capital, which provide loans to clients with very poor credit, have a loan rate of up to 25%-30% of the total loan volume.
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Alternative finance market: What are the revenue generating segments?
- P2P lending
- Crowdfunding
- Trading invoices
Alternative finance market: What are the key regions?
- APAC
- North America
- Europe
- south america
- MEA
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Covered companies:
- CircleUp Network Inc.
- Crowdfunder Ltd.
- Fundable LLC
- Funding Circle Holdings Plc
- Fundrise LLC
- GoFundMe Inc.
- Indiegogo Inc.
- Kickstarter PBC
- LendingClub Corp.
- Patreon Inc.
Alternative finance market is fragmented, and suppliers apply growth strategies such as organic and inorganic strategies to compete in the market. Moreover, to make the most of the opportunities and to recover from the impact of COVID-19, suppliers in the market should focus more on growth prospects in fast-growing segments, while maintaining their positions in slow-growing segments.
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- Strategic recommendations for new entrants
- Covers market data for 2020, 2021, to 2025
- Market trends (drivers, opportunities, threats, challenges, investment opportunities and recommendations)
- Strategic recommendations in key business segments based on market assessments
- Competitive Landscaping Mapping Key Common Trends
- Company profile with detailed strategies, financials and latest developments
- Supply chain trends that map the latest technological advances
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Scope of the alternative finance market |
|
Report Coverage |
Details |
Page number |
120 |
Primary year |
2020 |
Forecast period |
2021-2025 |
Growth momentum and CAGR |
Accelerate at 10% CAGR |
Market growth 2021-2025 |
176.15 billion dollars |
Market structure |
Fragmented |
Year-on-year growth (%) |
7.95 |
Regional analysis |
APAC, North America, Europe, South America and MEA |
Making a market contribution |
APAC at 73% |
Key consumer countries |
China, USA, Great Britain, Germany and Indonesia |
The competitive landscape |
Leading companies, competitive strategies, extent of consumer engagement |
Profiled companies |
CircleUp Network Inc., Crowdfunder Ltd., Fundable LLC, Funding Circle Holdings Plc, Fundrise LLC, GoFundMe Inc., Indiegogo Inc., Kickstarter PBC, LendingClub Corp. and Patreon Inc. |
Market Dynamics |
Analysis of the parent market, Inducers and barriers to market growth, Analysis of fast-growing and slow-growing segments, impact of COVID-19 and future consumer dynamics, analysis of market conditions for the forecast period, |
Customization overview |
If our report did not include the data you are looking for, you can contact our analysts and customize the segments. |
Content
1 Executive summary
2 Market Landscape
- 2.1 Market ecosystem
- Exhibit 01: Home market
- 2.2 Market characteristics
- Exhibit 02: Market characteristics
- 2.3 Value chain analysis
- Exhibit 03: Value Chain Analysis: Specialized Consumer Services
3 Determining the size of the market
- 3.1 Market definition
- Exhibit 04: Suppliers’ offers included in the market definition
- 3.2 Market segment analysis
- Exhibit 05: Market segments
- 3.4 Market Outlook: Forecast 2020 – 2025
- Exhibit 06: Global – Market Size and Forecast 2020 – 2025 ($ Billion)
- Exhibit 07: Global Market: Annual Growth 2020 – 2025 (%)
- 3.5 Types of financial models in alternative finance
4 Five forces analysis
- 4.1 Five forces analysis
- Exhibit 08: Analysis of the five forces in 2020 and 2025
- 4.2 Bargaining Power of Buyers
- Exhibit 09: Bargaining power of buyers
- 4.3 Supplier’s Bargaining Power
- Exhibit 10: Bargaining power of suppliers
- 4.4 Threat of New Entrants
- Exhibit 11: Threat of new entrants
- 4.5 Threat of Substitutions
- Exhibit 12: The threat of substitutes
- 4.6 Threat of Rivalry
- Exhibit 13: Rivalry Threat
- 4.7 Market Condition
- Exhibit 14: Market Status – Five Forces 2020
5 Market segmentation by type
- 5.3 P2P Lending – Market Size and Forecast 2020-2025
- Exhibit 17: P2P Lending – Market Size and Forecast 2020-2025 ($Billion)
- Exhibit 18: P2P Lending – Annual Growth 2020-2025 (%)
- 5.4 Crowdfunding – Market size and forecast 2020-2025
- Exhibit 19: Crowdfunding – Market Size and Forecast 2020-2025 ($Billion)
- Exhibit 20: Crowdfunding – Annual growth 2020-2025 (%)
- 5.5 Invoice Trading – Market Size and Forecast 2020-2025
- Exhibit 21: Invoice Trading – Market Size and Forecast 2020-2025 ($Billion)
- Figure 22: Invoice trading – Annual growth 2020-2025 (%)
- 5.6 Market opportunity by type
- Figure 23: Market opportunity by type
6 User landscape
7 Geographical landscape
- 7.1 Geographic segmentation
- 7.2 Geographical comparison
- 7.3 APAC – Market Size and Forecast 2020-2025
- 7.4 North America – Market size and forecast 2020-2025
- 7.5 Europe – Market size and forecast 2020-2025
- 7.6 south america – Market size and forecast 2020-2025
- 7.7 MEA – Market Size and Forecast 2020-2025
- 7.8 Key leading countries
- 7.9 Market opportunity by geography
8 Drivers, challenges and trends
9 The supplier landscape
10 Supplier analysis
- 10.2 Market positioning of suppliers
- 10.3 CircleUp Network Inc.
- 10.6 Funding Circle Holdings Plc
11 Appendix
- 11.2 Currency conversion rate for US$
- 11.3 Research methodology
- 11.4 List of Abbreviations
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