

Last year, Swiss banks lost around CHF 18.5 billion in credit volume. The competition from crowdlending is increasing rapidly.
This blog refers to the study by Prof. Dr. Andreas Dietrich, Dr. Simon Amrein and Nadine Berchtold and in relation to our startup. We also give a forecast of how our lending business could develop in the coming years.
In 2021, Swiss banks lost CHF 18.5 billion in credit volume. This is because a large part of the debt capital market has moved to online platforms such as Crowd4Cash, Swisspeers, Lend and many other young companies. A large part of this volume is currently still in the area of public-law corporations, as these move larger amounts due to the individual financing. The remaining volume is from companies that offer marketplace lending. This enables investors to invest directly in the alternative financing segment. The platforms bring borrowers and investors together directly, without involving a bank.
The marketplace lending segment consists of the following areas:
- Crowdlending loans
- Mortgage loans
- Online loans and borrowing
The online platforms described above bring many advantages, which is why many money seekers and financiers choose platforms such as Crowd4Cash.
Advantages of Marketplace Lending Platforms:
- speed
- Online and highly automated
- Easy online application
- Free choice for investors in which projects they want to participate
- Attractive interest rates
- Attractive returns
- Transparency
Disadvantages of banks:
- Smaller amounts are sometimes not interesting for the banks
- Usually associated with bureaucracy
- Time consuming
- Use of equity
The figures below from the Swiss Marketplace Lending Report illustrate this growth in the crowdlending segment:
2017: CHF 187 million
2018: CHF 260 million
2019: CHF 418 million
2020: CHF 448 million
2021: CHF 607 million
The credit volume has thus grown by an average of 34 percent per year over the last four years. In times of the Covid-19 pandemic, growth was somewhat slower than in previous and subsequent years.
Crowd4Cash and the field of crowdlending
Crowd4Cash has specialized in the crowdlending business for its projects. In 2021, loans of CHF 607 million were issued in this segment, including consumer loans, SME loans and real estate loans.
In the crowdlending segment, more than 50% of the investment volume is financed by professional investors. The money seekers can create a loan application through our website. This will be checked within a maximum of 48 hours. Customers are then informed of the result of the check. As soon as the investment project is approved, investors can invest in desired projects on our crowdlending platform.
Conclusion:
Crowdlending is a fast-growing, high-growth market that brings many benefits to both borrowers and investors. Crowd4Cash is a young company that has great potential to grow in the coming years.
Your Crowd4Cash team
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