Market Insights Financial Capital Raising Digital Capital Raising

CrowdLending (Business) - France

France

The total transaction value in the Crowdlending (Business) market market in France is projected to reach €0.38bn in 2024.
When compared globally, it is evident that the highest transaction value is expected China (€14,810m in 2024).
France's CrowdLending market is experiencing a surge in interest from small and medium enterprises seeking alternative capital raising options.

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

Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

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

Customer preferences: French businesses are increasingly turning to CrowdLending as a source of financing due to its convenience and flexibility. CrowdLending platforms provide an alternative to traditional banks, offering businesses the opportunity to secure loans quickly and easily. This is particularly appealing to small and medium-sized enterprises (SMEs) that may have difficulty accessing traditional bank loans. Additionally, CrowdLending allows businesses to tap into a larger pool of potential lenders, increasing their chances of securing the funding they need.

Trends in the market: One of the key trends in the French CrowdLending market is the diversification of loan types. While initially focused on unsecured loans, CrowdLending platforms are now offering a wider range of financing options, including secured loans and invoice financing. This allows businesses to choose the type of loan that best suits their needs and risk appetite. Another trend in the market is the increasing use of technology and data analytics. CrowdLending platforms are leveraging technology to streamline the loan application process, making it faster and more efficient. They are also using data analytics to assess the creditworthiness of borrowers, allowing them to make more informed lending decisions. This not only benefits lenders by reducing the risk of default, but also borrowers by increasing their chances of securing a loan.

Local special circumstances: France has a strong entrepreneurial culture, with a large number of small businesses and startups. However, these businesses often face challenges when it comes to accessing financing. Traditional banks can be reluctant to lend to small businesses, particularly those without a long track record or significant collateral. This has created a gap in the market that CrowdLending platforms are filling, providing much-needed financing to these businesses. In addition, the French government has been supportive of the CrowdLending industry. It has introduced regulations to ensure the stability and transparency of the market, while also providing tax incentives for individuals and businesses that invest through CrowdLending platforms. This has helped to boost confidence in the sector and attract more borrowers and lenders.

Underlying macroeconomic factors: The growth of the CrowdLending market in France can also be attributed to underlying macroeconomic factors. The low interest rate environment has made traditional bank loans less attractive for both borrowers and lenders. Borrowers are looking for alternative sources of financing that offer more favorable terms, while lenders are seeking higher returns on their investments. CrowdLending platforms are able to offer competitive interest rates to borrowers, while providing attractive returns to lenders. Furthermore, the economic recovery in France has led to increased business activity and investment. As businesses look to expand and seize new opportunities, they require financing to support their growth. CrowdLending platforms are well-positioned to meet this demand, providing businesses with the capital they need to invest and expand. In conclusion, the CrowdLending (Business) market in France is experiencing growth due to customer preferences for convenience and flexibility, the diversification of loan types, the use of technology and data analytics, the local special circumstances of a strong entrepreneurial culture and government support, as well as underlying macroeconomic factors such as low interest rates and economic recovery.

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.