Cambridge Centre for Alternative Finance
THE LANDSCAPE OF PEER TO PEER / MARKETPLACE LENDING
CAMBRIDGE CENTRE FOR ALTERNATIVE FINANCEUNIVERSITY OF CAMBRIDGE JUDGE BUSINESS SCHOOL
• Established in 2015 at the University of Cambridge Judge Business School
• 30 Research Publications to Date
• 3500+ FinTech Platforms Surveyed on a Yearly Basis Spanning 185 countries
• 300+ Industry and Academic Research Partners
• 40,000 Users of Alternative Finance Surveyed with £10bn Granular-Level Transaction Data Analyzed
• 300+ Policy and Regulatory Citations to Date
CAMBRIDGE CENTRE FOR ALTERNATIVE FINANCE (CCAF) RESEARCH HIGHLIGHTS
2
A Taxonomy of Online Alternative Finance (Digital Credit and Capital Raising)
3
Alternative Finance Model Abbreviations Definition
Peer-to-Peer/Marketplace Consumer Lending P2PC Individuals or institutional funders provide a loan to a consumer borrower
Peer-to-Peer/Marketplace Business Lending P2PB Individuals or institutional funders provide a loan to a business borrower
Peer-to-Peer/Marketplace Property Lending P2PP Individuals or institutional funders provide a loan to a property borrower
Reward-based Crowdfunding Reward CF Backers provide finance to individuals, projects or companies in exchange for non-monetary rewards or products
Real Estate Crowdfunding Real Estate CF Individuals or institutional funders provide equity or subordinated-debt financing for real estate
Equity-based Crowdfunding Equity CF Individuals or institutional funders purchase equity issued by a company
Donation-based Crowdfunding Donation CF Donors provide funding to individuals, projects or companies without expectations of monetary or material return
Invoice Trading - Individuals or institutional funders purchase invoices or receivable notes from a business at a discount
Debt-based Securities - Individuals or institutional funders purchase debt-based securities, typically a bond or debenture at a fixed interest rate
Balance Sheet Business Lending BSB 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
Global Online Alternative Finance Total Market Volume 2013-2017 ($Billions)
4
11.06 38.56
138.97
290.28
$ 418.52 B
-
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
450.00
2013 2014 2015 2016 2017
$USD
Billi
ons
Global Alternative Finance Market Volume (2013-2017)
5
2017 Global Total Volume by Model (Debt models = 87% of the total volume)
6
0.47
0.76
1.38
2.81
7.68
9.14
102.70
243.73
0.00 50.00 100.00 150.00 200.00 250.00
Donation CF
Reward CF
Equity CF
RealEst CF
Inovice Trading
P2PP
P2PB
P2PC
Billions
European Online Alternative Finance Market Volumes 2013-2017 €Bn (Ex. UK)
European Alternative Finance Market Volumes by Country & Per Capita (2017)
Alternative Finance Market Volume per Capita vs GDP per Capita (€EUR) 2017
European Alternative Finance Market Volumes by Sub Regions in 2017
€ 1392m
€ 467m
€ 536m
€ 211m
€ 159m
€ 259m
€ 67m
€ 95m
€ 53m
€ 75m
€ 3m
€ 29m
€ 2m
€ 697m
€ 350m
€ 252m
€ 219m
€ 191m
€ 109m
€ 95m
€ 59m
€ 32m
€ 23m
€ 17m
€ 10m
€ 8m
€ 366m
€ 212m
€ 81m
€ 159m
€ 139m
€ 27m
€ 2m
€ 22m
€ 11m
€ 1m
€ 0m € 200m € 400m € 600m € 800m € 1000m € 1200m € 1400m € 1600m
P2P Consumer Lending
P2P Business Lending
Invoice Trading
Equity-based Crowdfunding
Reward-based Crowdfunding
Real Estate Crowdfunding
P2P Property Lending
Balance Sheet Business Lending
Donation-based Crowdfunding
Debt-based Securities
Balance Sheet Consumer Lending
MiniBond
Profit Sharing Crowdfunding
2017 2016 2015
Alternative Finance Volume in Europe by Model 2013-2017 (€ EUR)
Total Online Alternative Business Funding (Excl. UK) 2012-2017 (€millions)
Debt vs Equity Online Alternative Business Finance 2012-2017 (€millions)
1,084
2,858
5,801
9,442
14,521
24,107
-
5,000
10,000
15,000
20,000
25,000
30,000
2012 2013 2014 2015 2016 2017
Business Fundraisers
164%
103%
63%
54%
66%
Number of European Businesses Raising Alternative Finance (ex UK) 2012-17
0.3% 0.9%
3.3%4.4%
6.6%
9.5%
£ 62 m £ 193 m £ 749 m £ 881 m £ 1.2 bn £ 2.04 bn
£ 38 bn
£ 43 bn
£ 53 bn
£ 58 bn £ 59 bn£ 57 bn
£ 18.2 bn£ 20.5 bn
£ 22.7 bn£ 19.9 bn £ 18.3 bn
£ 21.4 bn
0%
5%
10%
15%
20%
25%
30%
£ 0 bn
£ 10 bn
£ 20 bn
£ 30 bn
£ 40 bn
£ 50 bn
£ 60 bn
£ 70 bn
2012 2013 2014 2015 2016 2017
Peer-to-Peer Business Lending as a percentage of BBA New Loans to SMEsPeer-to-Peer Business LendingGross Lending to SMEs (Bank of England)New Loans to SMEs (BBA Data)
P2P Business Lending in the Context of Bank Lending to SMEs, 2012-17
0.9%
3.1%
11.7%13.1%
17.4%
29.2%
0%
5%
10%
15%
20%
25%
30%
2012 2013 2014 2015 2016 2017
Peer-to-Peer Business Lending as a Percentage of New Loans to Small Businesses in the UK, British Bankers Association (BBA) Data 2012-2017
Institutionalisation of Funding in Europe (2015-2017)
17
Gender Dynamics in European Online Alternative Finance (excluding UK)
18
The Perception of Regulations by Model in Europe (2017)
19
Perceived Risks by Platforms in P2P/Marketplace Lending (2017)
20
Research Programme: World Bank and CCAF
7
CCAF-World Bank GlobalAlternativeFinance Market Volume Rankings Launching in June 2019 185 Countries 2012-2017 Data Globally and Regionally Comparable
World Bank – CCAF GlobalAlternative Finance Regulation Survey Launching in June 2019 100 jurisdictions (regulators/central
banks) General Regulatory Approaches Regulations on Crowdfunding, P2P
Lending and ICOs Regulatory Innovations
World Bank – CCAF FinTech Innovation in the Western Balkans & Eastern Partnership
World Bank – CCAF Alternative Financing Models for Off-grid Solar Energy
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