Moving Mainstream: Benchmarking the European Alternative Finance Market

40 Pages Posted: 8 Dec 2017 Last revised: 10 Dec 2017

See all articles by Bryan Zhang

Bryan Zhang

University of Cambridge - Cambridge Centre for Alternative Finance

Robert Wardrop

University of Cambridge - Cambridge Centre for Alternative Finance

P. Raghavendra Rau

University of Cambridge

Mia Gray

University of Cambridge - Cambridge Centre for Alternative Finance

Date Written: November 7, 2015

Abstract

Since the global financial crisis, alternative finance — which includes financial instruments and distributive channels that emerge outside of the traditional financial system – has thrived in the U.S., the U.K. and Continental Europe. In particular, online alternative finance, from equity-based crowdfunding to peer-to-peer business lending, and from reward-based crowdfunding to debt-based securities, is supplying credit to small and medium enterprises (SMEs), providing venture capital to start-ups, offering more diverse and transparent ways for consumers to invest or borrow money, fostering innovation, generating jobs and funding worthwhile social causes.

Although a number of studies, including those carried out by the University of Cambridge and its research partners have documented the rise of crowdfunding and peer-to-peer lending in the UK, we actually know very little about the size, growth and diversity of various online platform-based alternative finance markets in key European countries. There is no independent, systematic and reliable research to scientifically benchmark the European alternative finance market, nor to inform policy-makers, brief regulators, update the press and educate the public. It is in this context that the University of Cambridge has collaborated with EY and 14 leading national/regional industry associations to collect industry data directly from 255 leading platforms in Europe through a web-based questionnaire, capturing an estimated 85-90% of the European online alternative finance market. This article presents the results of this study, conducted between October 2014 and January 2015.

Suggested Citation

Zhang, Bryan and Wardrop, Robert and Rau, P. Raghavendra and Gray, Mia, Moving Mainstream: Benchmarking the European Alternative Finance Market (November 7, 2015). Journal of Financial Perspectives, Vol. 3, No. 3, 2015. Available at SSRN: https://ssrn.com/abstract=3084008

Bryan Zhang (Contact Author)

University of Cambridge - Cambridge Centre for Alternative Finance ( email )

10 Trumpington Street
Cambridge, CB21QA
United Kingdom

Robert Wardrop

University of Cambridge - Cambridge Centre for Alternative Finance ( email )

10 Trumpington Street
Cambridge, CB21QA
United Kingdom

P. Raghavendra Rau

University of Cambridge ( email )

Cambridge Judge Business School
Trumpington Street
Cambridge, Cambridgeshire CB21AG
United Kingdom
3103626793 (Phone)

HOME PAGE: http://www.raghurau.com/

Mia Gray

University of Cambridge - Cambridge Centre for Alternative Finance

10 Trumpington Street
Cambridge, CB21QA
United Kingdom

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