Global Alternative Financing Market is valued at approximately USD 9.0 billion in 2021 and is anticipated to grow with a healthy growth rate of more than 20.2% over the forecast period 2022-2029. The term “alternative financing” refers to the channels that have developed independently of the conventional financial system, including capital markets, regulated banks, and other tools. Technology-enabled alternative finance products like social impact bonds and bitcoin generally define the market’s use of third-party capital. Alternative finance can assist minimize transaction costs and increase market efficiency for the company by putting fundraisers in direct contact with investors. Accordingly, the rising accessibility of financing services and the cost savings obtained by customers is expected to propel the use of alternative financial instruments. The rising government support, increasing adoption of digitalization in the financing sector, and increasing penetration of online lending platforms are prominent factors that are stipulating market growth across the globe.
The rapid rise in the fintech companies and development of fintech sector is exhibiting a positive influence on the growth of the market during the estimated period. As per Statista, an estimated 5,686 fintech companies existed in the United States in 2018, along with 3,581 in the EMEA region (Europe, the Middle East, and Africa) and 2,864 in the Asia Pacific. In addition, the number of fintech startups is rising and reach around 10,775 in the United States, 9,323 in EMEA, and 6,268 in Asia Pacific by 2021. Thus, these factors are exhibiting a positive impact on the market development globally. Moreover, increase in the adoption of internet-of-things & blockchain-based alternative lending platforms, as well as growing investment in technological developments are presenting various lucrative opportunities over the forecasting years. However, high security threats while alternative financing and the lack of awareness and understanding of the options available are challenging the market growth throughout the forecast period of 2022-2029.
The key regions considered for the Global Alternative Financing Market study include Asia Pacific, North America, Europe, Latin America, and the Rest of the World. North America dominated the market in terms of revenue, owing to the presence of well-developed infrastructure, along with a large pool of potential investors and borrowers. Whereas, the Asia Pacific is expected to grow with the highest CAGR during the forecast period, owing to factors such as the availability of supportive regulatory environment for alternative financing, as well as growth and development of alternative financing providers in the market space.
Major market players included in this report are:
LendingCrowd
Upstart Network, Inc.
Funding Circle
OnDeck
GoFundMe
Wefunder, Inc.
LendingTree, LLC
Prosper Funding LLC
Fundly
Kickstarter, PBC
Recent Developments in the Market:
Ø In May 2022, OnDeck unveiled a growing list of key partnerships including SoFi Technologies, Inc. and LendingTree in order to support small businesses across the nation. In these partnerships, OnDeck’s artificial intelligence (AI) and machine learning (ML) technology is combined with best-in-class fintech offers and digital lending products to give small businesses more options for getting quick access to working capital to assist their expansion.
Global Alternative Financing Market Report Scope:
Historical Data 2019-2020-2021
Base Year for Estimation 2021
Forecast period 2022-2029
Report Coverage Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
Segments Covered Type, End-user, Region
Regional Scope North America; Europe; Asia Pacific; Latin America; Rest of the World
Customization Scope Free report customization (equivalent up to 8 analyst’s working hours) with purchase. Addition or alteration to country, regional & segment scope*
The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values to the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within countries involved in the study.
The report also caters detailed information about the crucial aspects such as driving factors & challenges which will define the future growth of the market. Additionally, it also incorporates potential opportunities in micro markets for stakeholders to invest along with the detailed analysis of competitive landscape and product offerings of key players. The detailed segments and sub-segment of the market are explained below:
By Type:
Peer-to-Peer Lending
Crowdfunding
Invoice Trade
Others
By End-user:
Individual
Businesses
By Region:
North America
U.S.
Canada
Europe
UK
Germany
France
Spain
Italy
ROE
Asia Pacific
China
India
Japan
Australia
South Korea
RoAPAC
Latin America
Brazil
Mexico
RoLA
Rest of the World