NEW YORK, July 15, 2022 /PRNewswire/ — The Alternative Finance Market is a part of the global specialized consumer services industry. The global specialized consumer services market was valued at $4,388.46 billion in 2020. The global alternative finance market was a fragmented industry that was in a phase of innovation in 2020. By 2025, the market structure would continue to be fragmented. Its lifecycle stage would continue to be in the innovation phase. Moreover, the alternative finance market value is set to grow by USD 176.15 billion, progressing at a CAGR of 10% from 2020 to 2025, as per the latest report by Technavio.
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- One of the key factors driving the alternative finance market growth is the 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 finance investment platforms such as LendingClub and Funding Circle provide returns at a theoretical average of 7%.
- Another key factor driving the alternative finance market growth is the rapid growth in APAC. For instance, the number of SMEs in China was approximately 18.07 million by the end of 2018. Similarly, according to the data published by the Ministry of Micro, Small and Medium Enterprises (MSMEs), as of March 2020, there were 63.3 million (6.33 Crore) SMEs present across India.
- High risk of credit default is one of the key challenges hindering the alternative finance market growth. For instance, the default rates for LendingClub and Prosper Marketplace on loans with a payback period of three years or more average at around 10%-14%. High-risk lenders such as Bondora Capital, which provide loans to customers 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 is the Revenue-generating Type Segments?
- P2P Lending
- Invoice Trading
Alternative Finance Market: Which are the Key Regions?
- North America
- South America
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- CircleUp Network Inc.
- Crowdfunder Ltd.
- Fundable LLC
- Funding Circle Holdings Plc
- Fundrise LLC
- GoFundMe Inc.
- Indiegogo Inc.
- Kickstarter PBC
- LendingClub Corp.
- Patreon Inc.
The alternative finance market is fragmented, and the vendors are deploying growth strategies such as organic and inorganic strategies to compete in the market. Moreover, to make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
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Alternative Finance Market Scope
Growth momentum & CAGR
Accelerate at a CAGR of 10%
Market growth 2021-2025
$ 176.15 billion
YoY growth (%)
APAC, North America, Europe, South America, and MEA
Performing market contribution
APAC at 73%
Key consumer countries
China, US, UK, Germany, and Indonesia
Leading companies, competitive strategies, consumer engagement scope
CircleUp Network Inc., Crowdfunder Ltd., Fundable LLC, Funding Circle Holdings Plc, Fundrise LLC, GoFundMe Inc., Indiegogo Inc., Kickstarter PBC, LendingClub Corp., and Patreon Inc.
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and future consumer dynamics, market condition analysis for forecast period,
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Table of Contents
1 Executive Summary
2 Market Landscape
- 2.1 Market ecosystem
- Exhibit 01: Parent market
- 2.2 Market characteristics
- Exhibit 02: Market characteristics
- 2.3 Value chain analysis
- Exhibit 03: Value chain analysis: Specialized consumer services
3 Market Sizing
- 3.1 Market definition
- Exhibit 04: Offerings of vendors included in the market definition
- 3.2 Market segment analysis
- Exhibit 05: Market segments
- 3.3 Market size 2020
- 3.4 Market outlook: Forecast for 2020 – 2025
- Exhibit 06: Global – Market size and forecast 2020 – 2025 ($ billion)
- Exhibit 07: Global market: Year-over-year growth 2020 – 2025 (%)
- 3.5 Type of financial models in alternative finance
4 Five Forces Analysis
- 4.1 Five forces analysis
- Exhibit 08: Five forces analysis 2020 & 2025
- 4.2 Bargaining power of buyers
- Exhibit 09: Bargaining power of buyers
- 4.3 Bargaining power of suppliers
- Exhibit 10: Bargaining power of suppliers
- 4.4 Threat of new entrants
- Exhibit 11: Threat of new entrants
- 4.5 Threat of substitutes
- Exhibit 12: Threat of substitutes
- 4.6 Threat of rivalry
- Exhibit 13: Threat of rivalry
- 4.7 Market condition
- Exhibit 14: Market condition – Five forces 2020
5 Market Segmentation by Type
- 5.1 Market segments
- 5.2 Comparison 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 – Year-over-year 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 – Year-over-year growth 2020-2025 (%)
- 5.5 Invoice trading – Market size and forecast 2020-2025
- Exhibit 21: Invoice trading – Market size and forecast 2020-2025 ($ billion)
- Exhibit 22: Invoice trading – Year-over-year growth 2020-2025 (%)
- 5.6 Market opportunity by Type
- Exhibit 23: Market opportunity by Type
6 Customer landscape
7 Geographic Landscape
- 7.1 Geographic segmentation
- 7.2 Geographic 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
- 8.1 Market drivers
- 8.2 Market challenges
- 8.3 Market trends
9 Vendor Landscape
- 9.1 Vendor landscape
- 9.2 Landscape disruption
- 9.3 Competitive scenario
10 Vendor Analysis
- 10.1 Vendors covered
- 10.2 Market positioning of vendors
- 10.3 CircleUp Network Inc.
- 10.4 Crowdfunder Ltd.
- 10.5 Fundable LLC
- 10.6 Funding Circle Holdings Plc
- 10.7 Fundrise LLC
- 10.8 GoFundMe Inc.
- 10.9 Indiegogo Inc.
- 10.10 Kickstarter PBC
- 10.11 LendingClub Corp.
- 10.12 Patreon Inc.
- 11.1 Scope of the report
- 11.2 Currency conversion rates for US$
- 11.3 Research methodology
- 11.4 List of abbreviations
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