The latest Crowdfunding Monitor 2022 from the Lucerne University of Applied Sciences and Arts provides detailed information on developments ranging from crowdsupporting/crowddonation to crowdinvesting and crowdlending.
In the case of crowdfunding - i.e. the various forms of financing via the Internet - the volume in Switzerland grew in 2021 from 606.6 million Swiss francs in the previous year to a new 791.8 million Swiss francs or +31% (see Figure 1). After a Corona-related slump, strong growth is now being recorded again. Since the founding of the first crowdlending platform Cashare 14 years ago, around three billion francs have been brokered via the digital route in Switzerland.
Figure 1: Development of successfully financed campaigns by volume from 2008 to 2022.
The largest growth from 2020 to 2021 was in crowdlending (+35%, to CHF 607.0 million). With the end of the Corona crisis, corporate and personal lending growth has also returned.
Real Estate Crowdlending grew by a high 40.9% to CHF 418.0 million in 2021. Loans to companies in the real estate business were a key driver here. Real estate financing - typically subordinated - will continue to grow strongly (see Figure 2).
Large differences can be seen in the purposes for which loans are used. In business crowdlending, the focus is on project financing, debt restructuring or short-term loans for liquidity management. In Consumer Crowdlending, loans are mainly needed for debt restructuring, education, cars, travel or weddings. In the real estate crowdlending sector, mortgages are usually granted to private individuals as well as interim financing for real estate developers.
Large differences can be seen in the purposes for which loans are used. In business crowdlending, the focus is on project financing, debt restructuring or short-term loans for liquidity management. In Consumer Crowdlending, loans are mainly needed for debt restructuring, education, cars, travel or weddings. In the real estate crowdlending sector, mortgages are usually granted to private individuals as well as interim financing for real estate developers.
Although financing with crowdlending is growing strongly year after year, the volume is still modest compared to banks. For example, the volume of consumer loans through crowdlending is just 2% of the total consumer loan market in Switzerland.
Positively speaking, crowdlending still has enormous potential to further increase its market share at the expense of banks in the coming years.
Your financial expert Michael Boge
