The Global Alternative Finance Market Benchmarking Report

Page 72

The Global Alternative Finance Market Benchmarking Report

considerable impact on the loan portfolio of lending-platforms. Finally, the continental alternative finance market in Europe is growing, partially due to revisions to existing regulatory frameworks, but also in anticipation of the

European Crowdfunding Service Provider Regime, which will create harmonised legal framework across the continent for cross-border crowdfunding.

Figure 2.3: European Online Alternative Finance Market Volumes 2013-2018 in USD (Excluding the UK) 7.7

8000 7000 6000

103%

Billion

5000

3.8

4000 3000

63%

2.3

2000 1000

0.8

82%

0.4

102%

1.1

43%

0 2013

2014

2015

2016

Total volume by internal EU designations

2017

2018

within Europe in terms of the volume and number of platforms, but also in the ratio of debt-based and equity-based activities to the overall alternative finance volume in the region.

The previous European Benchmarking Reports have shown significant disparities across regions

Figure 2.4: Regional Alternative Finance Volumes 2016-2018 USD 10,368

12,000

Million

6754

8000

8005

10,000

6000

2016

2017

57 124 123

11 51 188

pe Eu

ro

lk en

al

Ba

ia rg eo

s

114 196 193

6 37 388 *

G

ro Eu

tr en C

Ea

st

er

n

IS

pe

ia er Ib

ly It a

cs lti Ba

cs N

or

di

nc Fr a

an m er G

e

y

x lu ne Be

U

K

0

C

78 202 414

150 191 436

141 272 533

151 265 540

357 507 825

493 747 935

272 419

2000

356 672 1,276

1,859

4000

2018

On continental Europe, the markets show considerable diversity. Due to especially strong growth of debt-based models in the Netherlands, the Benelux region (Belgium, Netherlands, Luxembourg) ranks second with $1.86 billion market volume. 2017 saw volumes in the Benelux region at only $419 million, placing the region

The UK has been and continues to be the most significant contributor to European alternative finance market volumes, with 91% of the UK volume ($9.3 billion) derived from debt-based models, 8% from equity-based models ($870 million) and the remainder from non-Investment models ($76.6 million).

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