Europe Crowd Lending And Crowd Investing Market Size

Europe Crowdlending and Crowd Investing Market Analysis

The Europe Crowd Lending and Crowd Investing Market size was estimated at USD 13.21 billion in the current year to USD 14.41 billion in five years, registering a CAGR of 1.76% during the forecast period.

• The Europe crowd lending and crowd investing market is analyzed to witness steady growth in the coming years. The growing digitization coupled with growing easy access to financing services is driving the studied market growth in Europe. Further, the shift towards digital transformation opens up new opportunities for the market vendors in the region. Countries like Spain, the Netherlands, and the United Kingdom are witnessing significant growth in the market.
• Moreover, the shift to digital media opens up several new possibilities for private loans offered online and bank-independent loans. Additionally, the pandemic significantly accelerated the development of crowdlending. According to a recent report by Mastercard, 62% of Europeans have been considering moving from traditional banking to digital platforms, and 42% of Europeans now manage their finances digitally more regularly than before the pandemic. The transition to digital technologies has made it simpler for lenders to obtain funding.
• The transformation and the expansion of access to essential financial services are being driven by the widespread use of smartphones and digital technologies, which include a variety of newly released applications that enable online banks to reach more customers and web-based platforms to connect savers and borrowers for lending money directly.
• Additionally, the region is witnessing significant partnership and acquisition activities among market vendors, thus significantly supporting the market expansion. For instance, several acquisitions in the past few months, such as the Dutch platform Symbid acquisition by Romanian crowdfunding firm SeedBlink, which focuses on tech startups and scale-ups, and the October platform acquisition by its French competitor Credit.fr, etc., are analyzed to transform the market in the region.
• The COVID-19 pandemic impacted the market, considering the funds raised were decreased due to the region's loss of jobs and economic downturn. Vendors operating in the market studied have witnessed a significant slump in revenue during the pandemic, which was due to the effect of the pandemic-induced lockdown, which forced businesses to close, thereby resulting in low levels of investment in business expansion and other activities, diminishing the need for loans which have impacted the market studied during the pandemic. Also, demand for lending post-pandemic is suppressed by rising inflation and the financial impact of the war in Ukraine. However, the growth is expected to bounce back over the next three years with initiatives such as government-backed pandemic loan schemes.