ALTERNATIVE FINANCE MARKET DATA --GLOBAL BENCHMARKING · 2018-04-03 · cambridge centre for...

Cambridge Centre for Alternative Finance

ALTERNATIVE FINANCE MARKET DATA

--GLOBAL BENCHMARKING

RUI HAO (PHD, CQF)

RESEARCH ASSOCIATE & DATA SCIENTIST

CAMBRIDGE CENTER FOR ALTERNATIVE FINANCE

20 MARCH 2018

I. CCAF Introduction

II. Global Alternative Finance Data Overview—Currency: US Dollars

III.European Alternative Finance Benchmarking Data—Currency: Euro

OUTLINE

2

Course Title | Presentation Title | Name or Initials (Go to Insert > Header & Footer to update text)3

I. CCAF INTRODUCTION

1. Alternative Finance Channels & Instruments (e.g. Fintech Models, Benchmarking Report)

2. Alternative Credit and Investment Analytics (e.g.Funder & Fundraiser Studies, FCA, SME Credit with Experian, World Largest Fintech Data Repository)

3. Alternative Payments & Distributed Ledger Technologies (e.g.Cryptocurrency & Blockchain)

4. Alternative Finance Regulations and Policy （e.g.Regulator Survey, RegSimple）

CCAF RESEARCH STREAMS


▪ 17 Industry Reports to Date and Academic Papers & Chapters

▪ 1500+ FinTech Platforms Surveyed in 2016

▪ Covering All Global Regions and More than 150 Countries

▪ 100+ Industry and FinTech Ecosystem Partners

▪ 20+ Academic Research Partners

▪ Over £10bn Worth of Granular-Level Transactional Data Collected

▪ 30 Million Micro-Transactions in the Dataset between Lenders/Investors/Backers and Borrowers/Fundraisers/

▪ 200+ Mainstream Press Citations to Date

▪ 100+ Policy and Regulatory Citations to Date

▪ Commissioned Programs (WB, IDB, FCA, FSD Africa, BBVA, Omidyar Network, etc.)

▪ Global Internships (Winter, Spring, Summer)

CAMBRIDGE CENTRE FOR ALTERNATIVE FINANCE (CCAF)

RESEARCH HIGHLIGHTS

5

FUNDERS

6


II. OVERVIEW OF GLOBAL ALTERNATIVE FINANCE

(Currency: US Dollars)

ALTERNATIVE FINANCE MARKET DATA 2013-2016


11,19

39,79

132,59

290,61

-

256%

233%

119%

0,00%

50,00%

100,00%

150,00%

200,00%

250,00%

300,00%

-

50,00

100,00

150,00

200,00

250,00

300,00

350,00

2013 2014 2015 2016

Mil m

ilhões

Total Volume Percentage of Change

ALTERNATIVE FINANCE MARKET TOTAL VOLUME BY REGIONS 2016


35,44

1,99

243,82

2,23 0,37 6,75 9,37

1,14

92,91

1,10 0,26 4,91

26%

57%

38%

49%

71%73%

0,00%

10,00%

20,00%

30,00%

40,00%

50,00%

60,00%

70,00%

80,00%

-

50,00

100,00

150,00

200,00

250,00

300,00

Americas Asia-Pacific China Europe Middle East Africa UK

Mil m

ilhões

Total_Volume($) Business_Finance Business_Fin_Percent

ALTERNATIVE FINANCE TOP 20 COUNTRIES 2016


Top 3 Total Volume:

China (83.93%)

USA (11.92%)

UK (2.32%)

Top 3 Business Finance:

China (84.74%)

USA (8.04%)

UK (4.48%)

DEFINATION OF TYPICAL MODELS


Alternative Finance Model Definition

Peer-to-Peer Consumer Lending Individuals or institutional funders provide a loan to a consumer borrower

Peer-to-Peer Business Lending Individuals or institutional funders provide a loan to a business borrower

Equity-based Crowdfunding Individuals or institutional funders purchase equity issued by a company

Reward-based Crowdfunding Backers provide finance to individuals, projects or companies in exchange for non-monetary

rewards or products

Invoice Trading Individuals or institutional funders purchase invoices or receivable notes from a business at a

discount

Real Estate Crowdfunding Individuals or institutional funders provide equity or subordinated-debt financing for real estate

Donation-based Crowdfunding Donors provide funding to individuals, projects or companies without expectations of monetary or

material return

Debt-based Securities Individuals or institutional funders purchase debt-based securities, typically a bond or debenture at

a fixed interest rate

Mini-Bonds Individuals or institutions purchase securities from companies in the form of an unsecured retail

bonds

Balance Sheet Business Lending The platform entity provides a loan directly to a business borrower

Profit Sharing Crowdfunding Individuals or institutions purchase securities from a company, such as shares or bonds, and share

in the profits or royalties of the business

P2P, BS,CROWDFUNDING & OTHER MODELS 2016


47,73

6,95 4,11

231,82

34,54

3,42 4,01

67,72

-

50,00

100,00

150,00

200,00

250,00

2016 2016 2016 2016

Balance Sheet Crowdfunding Other Models P2P

Mil m

ilhões

Sum of sum_total_volume

Sum of sum_total_busifin_volume

LOAN PURPOSES (P2P+BS) TOTAL VOLUME 2016


96,43

160,17

10,33

-

20,00

40,00

60,00

80,00

100,00

120,00

140,00

160,00

180,00

2016 2016 2016

Business Lending Consumer Lending Property Lending

Mil m

ilhões

36%

60%

4%

OTHER INFORMATION (FUNDERAISER, FUNDER, AVERAGE DEAL SIZE) BY REGIONS 2016


82,51

350,09

26,31 1,12 0,03

26,97 6,81 1,51

98,79

3,97 0,64 3,16 -

50,00

100,00

150,00

200,00

250,00

300,00

350,00

400,00


Milhões

No. of Fundraisers No. of Funders

0,81

0,15 0,13 0,11

0,59

-

0,10

0,20

0,30

0,40

0,50

0,60

0,70

0,80

0,90


Milhões

Average Deal Size

Property

Business Professions

Music & Arts

Property

SOME FIGURES FOR PORTUGAL 2016


Avg_deal_size Total Volume

Global Ranking

Volume per

Capita (Rank)

Business

Finance Global

Ranking

P2PB—largest

volume (Rank)

Reward CF--most

popular (Rank)

Donation CF

(Rank)

5698 48/144 0.46(45/144) 44/144 3,582,189.46

(33/46)

1,155,911.72

(36/140)

62,775.73

(35/54)

0,11 0,26 0,62

1,95

4,80

- - -

1,09

3,81

-

133%142%

216%

146%

0,00%

50,00%

100,00%

150,00%

200,00%

250,00%

-

1,00

2,00

3,00

4,00

5,00

6,00

2012 2013 2014 2015 2016

Milhões

Total Volume Business Finance Percentage of Change in Total Volume


III. EUROPEAN ALTERNATIVE FINANCE BENCHMARKING DATA 2016 (Currency: Euro)

Introduction:

• 20+ Research Partners

• Analysis from 267 EU Platforms & 77 UK Platforms

• Analysis from 46 Countries + UK:Germany, France, Spain, Italy, Netherlands, Austria, Norway, Czech Republic, Finland, Switzerland, Denmark, Sweden, Estonia, Lithuania, Poland, Belgium, Portugal, Latvia Slovakia, Romania, Greece, Slovenia, Bulgaria, Romania, Ukraine, Russia, Hungary, Ireland, Iceland, Monaco, Malta, Belarus, Croatia, Kosovo, Malta, Monaco, Turkey, Georgia, Cyprus, Albania , Andorra, Bosnia & Herzegovina, Macedonia, Montenegro

The Size & Growth of Alternative Finance in Europe

Total Volume (Excluding UK) Total Volume (Including UK)

Total Volume by European Country - 2016

Slovenia: €4.7mPortugal: €4.4mPortugal Europe Rank (2016): 23/47

Total Alternative Finance Volume per Capita by Country - 2016

Portugal Europe Rank (2016): 24/47

Total Alternative Finance Volume per Capita vs GDP per Capita - 2016

More P2P

More non-investment (e.g. Reward CF, Donation CF)

The Diversity of Models –2016 Taxonomy

Alternative Finance Model Europe 2016Market Share within Europe

Portugal 2016Market Share

within Portugal

P2P Consumer Lending € 696.81m 34%

P2P Business Lending € 349.96m 17% €3.299 74.6%

Invoice Trading € 251.87m 12%

Equity-based Crowdfunding € 218.64m 11%

Reward-based Crowdfunding € 190.76m 9% €0.241m 24.1%

Real Estate Crowdfunding € 109.45m 5%

P2P Property Lending € 95.15m 5%

Balance Sheet Business Lending € 59.13m 3%

Donation-based Crowdfunding € 32.40m 2% €0.013m 1.3%

Debt-based Securities € 22.85m 1%

Balance Sheet Consumer Lending € 16.74m 1%

MiniBond € 10.16m .5%

Profit Sharing Crowdfunding € 8.36m .41%

Balance Sheet Property Lending € 1.00m .05%

Model Portugal

P2PB NA

Reward-

based CF

1. Food & Drink, 2.

Arts & Music &

Design,

3. Film &

Entertainment

Donation-

based CFCharity

Top FundedIndustries

Markets Dynamics by Models--Qualification Rate & Successful Funding Rate


Model Portugal (SFR/OR)

P2PB NA

Reward-

based CF45% / 35%

Donation-

based CF55% / 55%

Market Dynamics by Models--Repeated Funding Rate


Model Portugal

P2PB NA

Reward-

based CF2.5%

Donation-

based CF25%

Market Dynamics by Models—Female Fundraisers & Funders


Model

Portugal

(Fundraisers/

Funders)

P2PB NA/ 9%

Reward-

based

CF

NA

Donation

-based

CF

NA

Developments & Innovations –

Cross Border Inflow & Outflow by Proportion of Model Volume


ModelPortugal (Inflow/

Outflow)

P2PB 0 / NA

Reward-

based

CF

15% / 2.5%

Donation

-based

CF

NA / 7.5%

Developments & Innovations –

Platforms Internationalisation Strategy by Model


Model Portugal

P2PB NA

Reward-

based

CF

No International

Expansion

Strategy

Donation

-based

CF

No International

Expansion

Strategy

Risk


Model Portugal

P2PB NA

Reward-

based

CF

Fraud: High Risk

Cyber attach: Medium

All others: Low to very

Low Risk

Donation

-based

CF

All very low risk

Perception towards Existing National Regulation


Model Portugal

P2PB NA

Reward-

based

CF

Adequate and

appropriate for my

platform activities.

Donation

-based

CF

Adequate and

appropriate for my

platform activities.

http://www.jbs.cam.ac.uk/ccaf

@CambridgeAltFin

[email protected]

[email protected]

mailto:[email protected]

mailto:[email protected]

ALTERNATIVE FINANCE MARKET DATA --GLOBAL BENCHMARKING · 2018-04-03 · cambridge centre for...

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