NEW YORK, July 15, 2022 /PRNewswire/ — The Alternative financial market is part of the world the specialized consumer services industry. The global specialist consumer service market was valued at $4,388.46 billion in 2020. The global alternative finance market was a fragmented industry which was in an innovation stage in 2020. By 2025, the market structure would continue to be fragmented. Its life cycle stage would continue to be in the innovation stage. In addition, the market value of alternative finance is set at grow from $176.15 billiongrowing at a CAGR of 10% from 2020 to 2025, according to the latest Technavio report.
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One of the main growth drivers for the alternative finance market is the best returns for investors. The average yield on FDs or 10-year government bonds in developed countries like the UK and the US is around 1% to 3%, and alternative finance investment platforms such as LendingClub and Funding Circle offer average theoretical returns of 7%.
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Another key driver for the growth of the alternative finance market is the rapid growth in Asia-Pacific. For example, the number of SMEs in China was around 18.07 million at the end of 2018. Similarly, according to data released by the Ministry of Micro, Small and Medium Enterprises (MSMEs), in March 2020there were 63.3 million (6.33 billion) SMEs present through India.
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High risk of credit default is one of the major challenges hindering the growth of the alternative finance market. For example, default rates for LendingClub and Prosper Marketplace on loans with a repayment period of three years or more average around 10% to 14%. High-risk lenders such as Bondora Capital, which provide loans to clients with very poor creditworthiness, have a credit default rate of up to 25-30% of their overall loan volume.
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Alternative finance market: what are the revenue-generating type segments?
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P2P loan
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Crowdfunding
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Invoice trade
Alternative financial market: what are the key regions?
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APAC
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North America
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Europe
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South America
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AEM
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Companies covered:
The alternative finance market is fragmented, and sellers are deploying growth strategies such as organic and inorganic strategies to compete in the market. In addition, to make the most of the opportunities and to recover from the post COVID-19 impact, market vendors are expected to focus more on growth prospects in fast-growing segments, while maintaining their positions in low-growth segments.
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What our reports offer:
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Market share assessments for regional and country segments
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Strategic recommendations for new entrants
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Covers market data for 2020, 2021, through 2025
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Market Trends (Drivers, Opportunities, Threats, Challenges, Investment Opportunities and Recommendations)
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Strategic recommendations in key business segments based on market estimates
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Competitive landscaping mapping major common trends
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Company profiling with detailed strategies, financials and recent developments
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Supply chain trends mapping the latest technological advancements
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Scope of the alternative finance market |
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Report cover |
Details |
Page number |
120 |
base year |
2020 |
Forecast period |
2021-2025 |
Growth momentum and CAGR |
Accelerate at a CAGR of 10% |
Market Growth 2021-2025 |
$176.15 billion |
Market structure |
Fragmented |
Annual growth (%) |
7.95 |
Regional analysis |
APAC, North America, Europe, South America and MEA |
Successful market contribution |
Asia-Pacific at 73% |
Main consumer countries |
China, USA, UK, Germany and Indonesia |
Competitive landscape |
Leading companies, competitive strategies, scope 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 |
Parent Market Analysis, Market Growth Drivers and Barriers, Fast and Slow Growing Segment Analysis, COVID 19 Impact and Future Consumer Dynamics, Market Condition Analysis for the Forecast Period, |
Customization overview |
If our report does not include the data you are looking for, you can contact our analysts and customize the segments. |
Contents
1. Summary
2 Market landscape
3 Market sizing
4 Five forces analysis
5 Market Segmentation by Type
6 Customer Landscape
7 Geographic landscape
8 drivers, challenges and trends
9 Supplier Landscape
10 Vendor Analysis
11 Appendix
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