Market Insights Financial Capital Raising Digital Capital Raising

CrowdLending (Business) - Japan

Japan

The total transaction value in the Crowdlending (Business) market market in Japan is expected to hit US$0.6bn by 2024.
When comparing globally, China leads with a projected transaction value of US$15,970m in the same year.
In Japan, CrowdLending in the Capital Raising market is gaining traction among small businesses seeking alternative financing options in a traditionally conservative financial environment.

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

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Analyst Opinion

The CrowdLending (Business) market in Japan has been experiencing significant growth in recent years.

Customer preferences: Japanese businesses have shown a growing interest in alternative financing options, such as CrowdLending, due to the ease and convenience it offers. CrowdLending platforms provide a streamlined process for businesses to access capital, without the need for traditional banks or lengthy approval processes. This appeals to businesses that are looking for quick and efficient funding solutions.

Trends in the market: One of the key trends in the CrowdLending (Business) market in Japan is the increasing number of platforms catering specifically to businesses. These platforms understand the unique needs and requirements of businesses, and offer tailored financing options to meet their demands. This specialization has led to a surge in the number of businesses turning to CrowdLending as a viable funding source. Another trend in the market is the growing popularity of peer-to-peer lending platforms. These platforms connect individual lenders directly with businesses in need of financing. This direct connection allows for more competitive interest rates and greater transparency in the lending process. As a result, more businesses are opting for peer-to-peer lending platforms as a means of accessing capital.

Local special circumstances: Japan has a strong culture of entrepreneurship and a vibrant small and medium-sized enterprise (SME) sector. However, traditional financing options for these businesses have been limited, with banks often requiring extensive collateral and imposing strict lending criteria. This has created a gap in the market, which CrowdLending platforms have been able to fill. The flexibility and accessibility of CrowdLending has made it an attractive option for Japanese businesses, particularly SMEs, seeking funding.

Underlying macroeconomic factors: The development of the CrowdLending (Business) market in Japan can be attributed to several underlying macroeconomic factors. One such factor is the low interest rate environment in the country. With interest rates at historically low levels, businesses are seeking alternative ways to generate returns on their capital. CrowdLending provides an opportunity for businesses to earn higher interest rates on their investments compared to traditional savings accounts or government bonds. Additionally, the government has been supportive of the development of the fintech industry in Japan, including CrowdLending. Regulatory reforms have been implemented to create a more favorable environment for alternative financing platforms, providing businesses with greater confidence in utilizing these services. This support from the government has helped to drive the growth of the CrowdLending (Business) market in Japan. In conclusion, the CrowdLending (Business) market in Japan is experiencing growth due to customer preferences for alternative financing options, the emergence of specialized platforms, and the supportive macroeconomic and regulatory environment. This market trend is expected to continue as more businesses recognize the benefits of CrowdLending as a viable funding source.

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.