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CrowdLending (Business) - Bangladesh

Bangladesh

The total transaction value in the Crowdlending (Business) market market is expected to reach US$0.0 in 2024 in Bangladesh.
When comparing globally, it is evident that China leads with a transaction value of US$15,970m in 2024.
In Bangladesh, CrowdLending platforms are gaining traction as a popular choice for capital raising among small and medium-sized businesses.

Key regions: United States, Singapore, Brazil, Europe, Germany

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Analyst Opinion

CrowdLending (Business) market in Bangladesh is experiencing significant growth and development.

Customer preferences: In Bangladesh, small and medium-sized enterprises (SMEs) are the backbone of the economy, accounting for a large portion of employment and GDP. These businesses often face challenges in accessing traditional financing options from banks due to stringent requirements and lengthy approval processes. As a result, there is a growing demand for alternative financing solutions, such as CrowdLending, which provide quicker and more accessible funding for SMEs.

Trends in the market: The CrowdLending market in Bangladesh is witnessing a surge in platforms that connect lenders with borrowers. These platforms leverage technology to streamline the lending process, making it more efficient and transparent. This has attracted a growing number of lenders who are looking for investment opportunities with potentially higher returns compared to traditional financial instruments. Additionally, borrowers are also drawn to CrowdLending platforms as they offer more flexible terms and lower interest rates compared to traditional lenders.

Local special circumstances: One of the key factors driving the growth of the CrowdLending market in Bangladesh is the rapid increase in internet and smartphone penetration. This has enabled more people to access online platforms and participate in CrowdLending activities. Furthermore, the government has taken initiatives to promote financial inclusion and digital payments, creating an enabling environment for the development of the CrowdLending market.

Underlying macroeconomic factors: Bangladesh has been experiencing steady economic growth in recent years, with a rising middle class and increasing disposable income. This has created a favorable environment for businesses to thrive and has contributed to the demand for financing options. Additionally, the government's focus on promoting entrepreneurship and SME development has also played a role in driving the growth of the CrowdLending market. In conclusion, the CrowdLending (Business) market in Bangladesh is developing rapidly due to the increasing demand for alternative financing options by SMEs. The rise of online platforms, coupled with favorable macroeconomic factors and government initiatives, has created an environment conducive to the growth of the CrowdLending market. As technology continues to advance and financial inclusion efforts expand, it is expected that the CrowdLending market in Bangladesh will continue to evolve and play a significant role in supporting the growth of SMEs in the country.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.