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Alternative Financing Market Trends

Report ID: GMI5670
Published Date: May 2023
Report Format: PDF

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Alternative Financing Market Trends

The alternative financing market growth is being driven by the increasing use of the Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning (ML), and other similar technologies. Alternative financing provides solutions to businesses to sustain themselves in the industry by providing access to capital in difficult times. Alternative financing methods are generally seen as more flexible and less costly than bank loans. This has encouraged many businesses to use alternative financing to raise capital. As regulations provide protection to borrowers and lenders, government support increases consumer confidence in other financial options.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of alternative financing was worth more than USD 10 billion in 2022 and will witness over 15% CAGR from 2023 to 2032, due to surging need for greater financial efficiency amongst millennials.

The businesses end-user segment reached over USD 5.5 billion in 2022, owing to the growing need for securing capital quickly and effectively.

North America accounted for over 30% of the alternative financing market share in 2022, attributed to the strong presence of a large and growing financial services sector in the region.

Borrowers First, Credoc, Finastra, Funding Circle, GoFundMe, Kickstarter, Kiva Microfunds, LendingClub, LendingCrowd, Prosper Funding LLC, RateSetter, Sofi, Quicken Loans (Rocket Mortgage, LLC), Upstart Network, Inc. and Zopa are some leading market players.