The first academic report to hone in on the alternative finance market in the Americas has arrived.
The “Breaking New Ground: The Americas Alternative Finance Benchmarking Report” surveys a market which produced $36.49 billion in financing volume in 2015 – a 212% annual increase on the previous year’s total of $11.68 billion. The focus of the report was on marketplace/P2P lending and crowdfunding activities, capturing an estimated 80% of the visible online alternative finance market (by transaction volumes) in the Americas. The comprehensive study was conducted over the course of 8 months, and surveyed 257 online alternative finance platforms. 178 of these platforms hailed from the US and Canada.
The team behind the report included the Cambridge Centre for Alternative Finance, the University of Cambridge Judge Business School and the Polsky Center for Entrepreneurship and Innovation at the University of Chicago Booth School of Business (Chicago Booth). KPMG served as a partner and the CME Group Foundation, the Inter-American Development Bank (IDB), the Business Development Bank of Canada (BDC) and CPAmerica also provided support. Cambridge has been the driving force behind a trio of benchmarking reports in the early stages of 2016, the first focused on the UK and the second on the Asia-Pacific region.
The key findings of the report include the following:
Robert Wardrop, Executive Director of the Cambridge Centre for Alternative Finance, offered his thoughts:
“In contrast with other markets that we have analyzed, the Americas region stands out for its complexity. This reflects the sophisticated financial markets and correspondingly complex regulatory environment in the region, but also illustrates the proficiency of the entrepreneurship ecosystem for deployment of technological innovation at scale. Our title for this year’s report, Breaking New Ground, attests to outcomes produced by this innovation.”
The Cambridge-led benchmarking series provides a useful means of taking the pulse of alternative finance markets globally. You can access the complete “Breaking New Ground” survey below.
Now in its sixth year, the AltFi London Summit returns on 18th March 2019 to 155 Bishopsgate. Last year proved to be a crucial turning point for the key players building the future of finance. Leading platforms launched oversubscribed IPOs, digital banks proliferated and mainstream financial institutions started their own disruptive propositions. With 2019 certain to be another landmark year, more questions will be asked by regulators with investor interest in disruption also poised for more rapid growth.