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CrowdLending (Business) - Southern Europe

Southern Europe

The total transaction value in the Crowdlending (Business) market market in Southern Europe is expected to hit €0.78bn by 2024.
When compared globally, it is evident that China leads with a transaction value of €14,660m in 2024.
In Southern Europe, CrowdLending platforms in Spain are experiencing a surge in capital raising activities, attracting diverse investors seeking alternative investment opportunities.

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

Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

The CrowdLending (Business) market in Southern Europe has witnessed significant growth in recent years, driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Southern Europe, businesses are increasingly turning to CrowdLending as a source of funding due to its efficiency and convenience. With traditional lending institutions becoming more stringent in their lending criteria, businesses are finding it challenging to secure loans. CrowdLending platforms offer an alternative solution by connecting borrowers directly with lenders, providing them with access to a wider pool of potential investors. Additionally, the ease of the online application process and quick funding turnaround time make CrowdLending an attractive option for businesses in need of capital.

Trends in the market: One of the key trends in the CrowdLending (Business) market in Southern Europe is the rise of peer-to-peer lending platforms. These platforms facilitate direct lending between individuals or businesses without the involvement of traditional financial institutions. This trend has gained traction due to the lower costs associated with peer-to-peer lending and the ability to bypass the lengthy approval processes of banks. As a result, businesses in Southern Europe are increasingly turning to peer-to-peer lending platforms to secure funding for their operations or expansion plans. Another trend in the market is the emergence of specialized lending platforms catering to specific industries or sectors. These platforms understand the unique needs and challenges faced by businesses in particular sectors and tailor their lending services accordingly. This specialization allows businesses to access funding that is specifically designed to meet their requirements, increasing the likelihood of successful loan applications.

Local special circumstances: Southern Europe has a vibrant small and medium-sized enterprise (SME) sector, which plays a crucial role in the region's economy. However, SMEs often face difficulties in accessing traditional financing options due to their size and limited collateral. CrowdLending platforms have filled this gap by providing SMEs with an alternative source of funding. These platforms are more willing to lend to smaller businesses, as they focus on the creditworthiness of the borrower rather than solely relying on collateral.

Underlying macroeconomic factors: The economic recovery in Southern Europe following the global financial crisis has been slow, leading to a cautious approach by traditional lenders. This has created an opportunity for CrowdLending platforms to thrive, as they offer businesses a viable alternative to secure funding. Additionally, low interest rates in the region have made borrowing more affordable, further incentivizing businesses to seek financing through CrowdLending platforms. Furthermore, advancements in technology and the increasing digitization of financial services have contributed to the growth of the CrowdLending (Business) market in Southern Europe. The ease of accessing online platforms and the ability to compare different lending options have made it more convenient for businesses to explore CrowdLending as a funding source. In conclusion, the CrowdLending (Business) market in Southern Europe is developing rapidly due to customer preferences for efficient and convenient financing options, market trends such as the rise of peer-to-peer lending platforms and specialized lending platforms, local special circumstances including the vibrant SME sector, and underlying macroeconomic factors such as the slow economic recovery and low interest rates in the region.

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.