The University of Cambridge and The University of Chicago recently published Breaking New Ground: The Americas Alternative Finance Benchmarking Report.
Spanning eight months, this large-scale study was supported by over 250 online alternative finance platforms operating across the Americas. We are very grateful to include Hotel Innvestor in that number! Breaking New Ground is the first comprehensive study of the fast-evolving online alternative finance market in the Americas. Focusing on marketplace/P2P lending and crowdfunding activities, the report captures an estimated 80 percent of the visible online alternative finance market (by transaction volumes) across the region. This report aims to provide independent, robust, reliable and up-to-date aggregate-level alternative finance market data for the reference of academics, industry, business communities, policymakers, regulators and the general public.
ONLINE ALTERNATIVE FINANCE MARKET IN THE AMERICAS GROWS
TO $36.5 BILLION IN 2015
The online alternative finance market, including crowdfunding and marketplace lending activities, grew rapidly across the Americas in 2015, generating an estimate total market volume of $36.49 billion, up more than threefold from an estimate $11.68 billion in 2014, according to the new report. Breaking New Ground: The Americas Alternative Finance Benchmarking Report published today, is the first comprehensive survey of the fast-changing online alternative finance market in the Americas. The survey was conducted by the Cambridge Centre for Alternative Finance at the University of Cambridge Judge Business School and the Polsky Center for Entrepreneurship and Innovation at the University of Chicago Booth School of Business, in partnership with KPMG LLP and CME Group Foundation, and with the support of the Inter-American Development Bank (IDB), the Development Bank of Canada (BDC) and CPA America International.
Cambridge/University of Chicago benchmarking study highlights emerging trends in rapidly growing industry.
The United States accounts for 99% of all online alternative finance activity in the Americas, generating an estimate $36.17 billion in funding in 2015, up 213 percent from
an estimate $11.56 billion in 2014—making the U.S. the world’s second-largest online alternative finance market behind China. On a per capita basis, the US has the highest total online alternative finance market volume per capita in the world with $113.43 in 2015.
The markets are just beginning to develop in Latin American and the Caribbean, where the estimated market volume reached $110.46 million in 2015. Chile and Brazil account for most of the activity with $47.57million and $24.15 million recorded in 2015 respectively.
The research team surveyed 257 online alternative finance platforms operating in the Americas, including 178 from the US and Canada. The analysis focused on
marketplace/Peer-to-Peer (P2P) lending, reward- and equity-based crowdfunding, capturing an estimated 80% of the online alternative finance market by transaction
volume in the US and Canada and over 90% in Latin America and the Caribbean.
“Looking at the market trends illustrated in this benchmarking report, we see a nascent industry that is growing up fast and moving into the mainstream,” the report said.