2nd Global Alternative Finance Benchmarking Study

2nd Global Alternative Finance Benchmarking Study

The Cambridge Centre for Alternative Finance (CCAF) at the University of Cambridge Judge Business School has published its 2nd Global Alternative Finance Market Benchmarking Report, supported by Invesco.

The global study includes both 2019 and 2020 data, with 821 firms providing 2019 submissions and 703 firms providing 2020 submissions. These survey responses provide 1,801 firm-level observations for 2019 and 1,660 for 2020, representing the largest such dataset analysed by the CCAF. By presenting market data for both years, the study aims to provide a clearer picture of the impact of COVID-19 on digital lending and digital capital raising activities around the world.

The report found growth in total alternative finance volumes of 27% (excluding China) from 2018 to 2020 to US$113 billion. Most of this growth (24%) occurred in 2020 during the COVID-19 pandemic.

The study was supported by Invesco, The Foreign, Commonwealth and Development Office, The Inter-American Development Bank, IDB Invest (the private sector institution of the IDB Group) and by The Asian Development Bank Institute.

The key findings of the report show that global transactions of online alternative finance (excluding China) rose by 3% from $89 billion in 2018 to $91 billion in 2019. Against a backdrop of the global COVID-19 pandemic, volumes in 2020 actually rose a further 24% to reach $113 billion. Local market developments and regulatory changes in China have seen its share of global market volumes fall from 70.7% in 2018, to 48% in 2019 and to less than 1% in 2020.

This study, and the resultant report, illustrates just how resilient the online alternative finance market has been when you consider the impact of a global pandemic throughout the majority of 2020. Taking aside events in China, a global volume growth of 24% against a backdrop of COVID-19 shows how alternative finance instruments have been able to respond to the rapidly evolving needs of Micro, Small and Medium-sized Enterprises (MSMEs) and consumers alike.

Dr Robert Wardrop, Director and Co-founder, Cambridge Centre for Alternative Finance.

This is the second Global Alternative Finance Report Invesco has had the opportunity to be involved with, and the insights that are presented provide key indicators of spaces that we continue to monitor as our industry experiences fundamental business and operational disruptions imposed by technological advancements.

Dave Dowsett, Global Head Tech Strategy & Innovation, Invesco.

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