Crowdlending is that activity where people lend their money to companies or individuals, who will return the borrowed money according to the agreed conditions. In this type of alternative financing, crowdlending platforms appear, which manage the union between both parties.
Origin of crowdlending
Crowdlending emerged from crowdfunding, but instead of making contributions in the form of donations, non-bank financing is obtained in the form of loans, that is, the people who lend their money will recover capital and interest- see here now http://stannardhouse.com/wordpress/variet Stannardhouse.
Crowdlending has the largest volume in alternative financing
Within the alternative financing market, where we are, Crowdequity or participation in the capital, crowdfunding of donation, crowdfunding of reward … among others, the one that has a greater volume is crowdlending.
Crowdlending itself can be divided into crowdlending for individuals and crowdlending for companies. According to the data of the Study of the University of Cambridge, the following conclusions can be drawn:
- Crowdlending for individuals has a volume of 365.80 million euros growing at a rate of 54% between the years 2013-2015.
- Crowdlending for companies has a volume of 212,08 million, growing an average of 131% between the years 2013-2015.
Therefore, crowdlending for companies has a much higher growth than crowdlending for individuals, which suggests an advancement by crowdlending for companies in the coming years regarding volume.
Excluding the United Kingdom, the countries with the highest volume of corporate crowdlending are:
- The Netherlands with 74 million euros
- Germany with 49 million
- France with 29
We will analyze the data of each country according to data collected by the study of the University of Cambridge .
Alternative financing in the world
Only in Europe during the year 2015 have already reached 5,400 million euros financed through alternative financing with an annual growth of 92%, this volume in 2014 was 2,800 million euros.
In 2015, the alternative financing of Asia was 94 billion euros. The country with the largest volume of this type of financing is China.
The volume of alternative financing in America in 2015 was 33 billion euros. The regional market with the largest volume is the United States.
The volume of alternative financing in Europe during 2015 was 5 trillion euros. In Europe, the country with the highest volume in the UK.
If we remove China, the United Kingdom, and the United States from the analysis, Europe approaches the data of Asia and, on the other hand, America is further removed by not taking the United States into account.
Graphic: Study University of Cambridge of Alternative Financing.
The volume of alternative financing platforms in Europe
Graphic: Study University of Cambridge of Alternative Financing.
As can be observed in the previous graph, the volume in alternative financing has a great step from the United Kingdom to the following country that is France:
- 1. The United Kingdom with 4,300 million euros
- 2. France with 319 million euros
- 3. Germany with 249 million
- 4. The Netherlands with 111 million
- 5. Finland with 64 million
- 6. Spain with 50 million
Crowdlending in the United Kingdom
The United Kingdom, with more than 4,400 million euros of alternative financing volume in 2015, is by far the most powerful country in terms of this type of financing.
81% of the market volume of alternative financing in Europe is occupied by this country.
Only in the United Kingdom in 2015, there are a total of 94 platforms.
The crowdlending in France
In France, they have 49 alternative financing platforms. During 2015, it funded a total of 319 million euros, achieving a growth of 107% between 2013-2015.
The model with the most volume of euros is crowdlending for individuals followed by crowdequity. In France, crowdlending is in the 4th position with respect to volume with 28 million euros.
The greatest risk perceived by the platforms for the sector in the country is occupied by the collapse of the bad practices of known platforms.
The crowdlending in Germany
35 platforms appear in the alternative financing market that funded 249 million euros during 2015, having a growth of 78% between 2013-2015.
As in France, the model with the highest volume is crowdlending for individuals with 136 million euros, followed by crowdlending for companies with 48.7 million. Crowdlending for companies has experienced the highest growth compared to the previous year with a growth of 698%.
The biggest risk that the platforms declare is regulatory changes at European level.
Crowdlending in the Netherlands
In the Netherlands, there are a total of 27 alternative financing platforms, which funded 111 million euros, with a growth of 42% between the years 2013-2015.
The largest volume comes from crowdlending for companies with 73.9 million euros growing by 34% compared to 2014, followed by crowdequity. This volume of crowdlending for companies places them as the biggest crowdlending figure for companies excluded from the United Kingdom.
The biggest risk that the platforms declare is the collapse of the bad practices of known platforms.
Crowdlending in the Nordic countries
Norway, Sweden, Finland and Iceland.
The Nordic countries have suffered a unique situation when they are involved in a scandal of one of the largest platforms on misappropriation and misuse of funds. It is for this reason that the market for alternative financing in the Nordic countries was reduced by 19%, falling to 104 million euros from the 128 of the previous year.
The model that has the greatest volume is the crowdlending for individuals and also the one that has felt damaged by the scandal, from 114 million euros to 36.5 million. The crowdlending for companies is in second place with 28 million euros.
The biggest concern of the platforms is fraud and the percentage of failed loans.
Crowdlending in Spain
29 platforms form the Spanish market, which have funded 50 million euros in 2015. Compared to last year there has been a growth of 112%.
The model with the highest volume is crowdlending for companies with 21.8 million euros followed by reward crowdfunding. Crowdlending for companies has a growth of 222% per year between the years 2013-2015.
The biggest concern of the platforms is the regulatory change at the national level.
Central and Eastern Europe
Albania, Armenia, Austria, Belarus, Bosnia and Herzegovina, Bulgaria, Croazia, Czech Republic, Estonia, Georgia, Hungary, Kosovo, Latvia, Lithuania, Macedonia, Moldova, Montenegro, Poland, Romania, Serbia, Slovakia, Slovenia and Ukraine.
The average annual growth in these countries is 179%. In 2015 its volume is 89 million euros, with a growth of 167% between 2013-2015.
The models that have more volume are crowdlending for individuals with 46.3 million euros, followed by crowdfunding of reward. The crowdlending for companies is in the 5th position with millions of euros in volume.
The biggest risk that platforms detect is fraud.
The crowdlending in Italy
Italy has 30 financing platforms that have only funded 31 million euros in 2015. It has the highest growth year after year with 287% between 2013-2015.
The largest volume comes from crowdlending for individuals with 10.4 million euros followed by donation crowdfunding. Crowdlending for companies is in the last position according to volume with 0.6 million euros.
The biggest risk detected by the platforms is the violation of cyber security followed by regulatory changes at the European level.
In the following table, you can compare the number of platforms surveyed with the volume in millions of euros by alternative financing in each country. In the last column, the relationship between the number of platforms and volume appears.