This year, the Institute for Financial Services Zug IFZ at Lucerne University of Applied Sciences (HSLU) has published a comprehensive study focusing on the Swiss crowdlending market.
Market Development
In 2019, 11 platforms were active in the crowdlending sector and a volume of over CHF 418.4 million in loans was granted. In the previous year, a mediated loan volume of CHF 261.9 million was recorded. This corresponds to an increase of 59.8% compared to 2018.
Growth in total volume remains high. High growth can be observed in real estate crowdlending, meaning loans are mortgage-secured. SME financing and consumer loans, on the other hand, show only moderate growth.
Important Factors
Customer acquisition is extremely important for all crowdlending platforms - both on the borrower and investor sides. Growth must be balanced to serve both parties.
Reputation is another important factor. Potential misconduct or fraud cases harm the entire crowdlending industry in Switzerland! That's why we always advise our customers to inform themselves well about the various platforms, to diversify, and not to accept offer traps.
Purposes of Use
Top 3 categories for consumer loans: - Vehicles - Housing - Debt restructuring
Top 3 categories for SME loans: - Expansion/Growth - Working capital/Liquidity - Investment in fixed assets
Our experience and statistics align with the crowdlending study. Overall, crowdlending is still in a niche area. Nevertheless, the great potential of crowdlending as an alternative financing option is recognized.
Your Cashare Team!
