Development of the Swiss Crowdlending market in 2018/2019

Person who wrote the post admin May 08, 2019
Post image

Based on the Crowdlending Survey 2019 of the Lucerne University of Applied Sciences, we would like to present the most important findings of this study in short form in our blog. Of course, Crowd4Cash as one of the larger, established Swiss platforms is also part of this study.

Crowdlending in Switzerland

Swiss Crowdlending grew by a further 40% in 2018 to CHF 261.9 million. Growth drivers were mortgage-backed loans at 206% and SME loans at 40.3%. Consumer credit has fallen short of expectations at plus 10%. For an average SME loan, the lending volume was CHF 300,000, and for consumer loans it was CHF 30,000. And not surprisingly, the sum of CHF 650,000 was highest for mortgage-backed loans.

Total Market Analysis

At the end of 2017, CHF 7.7 billion of consumer loans and CHF 8.8 billion of lending loans were outstanding. In 2018, new business lent CHF 4.4 billion in consumer loans. Thus, the market share of Crowdlending in the consumer sector in Switzerland is just over 1%. For SME loans, the picture is even clearer: with an SME loan market of CHF 310 billion and a market penetration of CHF 134.4 million, the market share of Crowdlending is even lower. Crowdlending is still a clear niche product, but it is gaining importance every year. In the next section, you will see how the Swiss market compares internationally.

Crowdlending in an international comparison

Volume per capitaChina is by far the largest international market with CHF 345 billion, followed by the US with CHF 38.7 billion and the United Kingdom with 5.9 billion. The proportion of Crowdlending compared to gross domestic product (GDP) is certainly more meaningful. There are clear differences: with 0.04%, Switzerland is far behind the UK and the USA with 0.18% and 0.20%, respectively. China is in front with 2.68%. The volume per capita also makes it clear that the volume in Switzerland is hardly exhausted. For example, the United States has about four times more headwind per capita, and three times as many crowdlending volumes in the United Kingdom than in Switzerland. In these markets, primarily institutional investors are active in the market, a trend that will also accentuate in Switzerland. Even own platforms of banks can be identified, such as Marcus von Goldman Sachs.

Crowd4Cash grew more than 400% last year, growing faster than the market. Due to a stronger interest on the institutional side this year, we expect even stronger growth in 2018. For this we have developed a range of investment instruments. Fortunately, credit demand remains high and also allows us to meet greater investor demand. We are ready for the future and look forward to the next study.

The graphics are taken from the crowdlending survey.

Link to the study: https://blog.hslu.ch/retailbanking/files/2019/05/Crowdlending-Survey-2019_EN_web-1.pdf