Key regions: United States, Singapore, Brazil, Europe, Germany
The CrowdLending (Business) market in Sri Lanka is experiencing significant growth and development in recent years.
Customer preferences: Sri Lankan businesses are increasingly turning to CrowdLending as a source of financing due to its convenience and accessibility. The traditional banking sector in Sri Lanka has been slow in providing loans to small and medium-sized enterprises (SMEs), leaving a financing gap that CrowdLending platforms are filling. SMEs, which form the backbone of the Sri Lankan economy, are finding it easier to access funds through these platforms, which offer a quick and streamlined application process. Furthermore, CrowdLending allows businesses to bypass the stringent requirements and collateral demands of traditional banks, making it an attractive option for those who may not meet the strict lending criteria.
Trends in the market: One of the key trends in the CrowdLending market in Sri Lanka is the rise of peer-to-peer (P2P) lending platforms. These platforms connect lenders directly with borrowers, eliminating the need for intermediaries such as banks. P2P lending has gained popularity among both lenders and borrowers due to its transparency and lower interest rates compared to traditional lending options. This trend is expected to continue as more Sri Lankan businesses become aware of the benefits of P2P lending. Another trend in the market is the increasing use of technology and digital platforms. The proliferation of smartphones and internet access in Sri Lanka has made it easier for businesses to access CrowdLending platforms and apply for loans online. This has led to a significant increase in the number of businesses using these platforms, further driving the growth of the CrowdLending market in the country.
Local special circumstances: Sri Lanka has a large number of SMEs that face challenges in accessing financing from traditional banks. These businesses often lack the necessary collateral or credit history to secure loans from banks, making CrowdLending an attractive alternative. Additionally, the informal nature of many Sri Lankan businesses makes it difficult for them to meet the strict requirements of traditional lenders. CrowdLending platforms provide a solution to these challenges by offering flexible loan terms and simplified application processes.
Underlying macroeconomic factors: The development of the CrowdLending market in Sri Lanka is also influenced by macroeconomic factors. Sri Lanka has experienced steady economic growth in recent years, which has led to an increase in the number of businesses seeking financing. The government has also taken steps to promote entrepreneurship and support SMEs, which has further fueled the demand for alternative financing options. Additionally, the low interest rate environment in Sri Lanka has made CrowdLending an attractive option for both lenders and borrowers. In conclusion, the CrowdLending (Business) market in Sri Lanka is growing rapidly due to the preferences of businesses for convenient and accessible financing options, the trends of P2P lending and digital platforms, the local special circumstances of SMEs, and the underlying macroeconomic factors of economic growth and government support. This market is expected to continue its upward trajectory as more businesses recognize the benefits of CrowdLending and as the financial technology sector in Sri Lanka continues to evolve.
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.
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