Alternative Finance Research Report Released

By AltFi on Friday 7 November 2014

Alternative Lending

The annual industry snapshot that is the UK Alternative Finance Industry Report has just released its latest iteration.

The study is entitled “Understanding Alternative Finance” and has been co-authored by the University of Cambridge and Nesta. The report has already drawn comment from a number of the nation’s leading platforms. We’ve summarized the highlights below:

  • Cumulative funding will more than double this year – from £0.7bn in 2013 to approximately £1.7bn in 2014
  • Average amounts raised varies dramatically depending upon sub-sector. The average equity crowdfunding raise was around £200k, peer-to-business raises averaged out at £73k and the average consumer loan stood at £5k. 
  • The same can be said of average investment amounts. The average amount invested in the peer-to-business space was £8.1k, £5.6k in the consumer sector and £5.4k on equity crowdfunding platforms.
  • Some interesting findings were unearthed in regard to public awareness. Of the 2,000 consumer surveyed, 58% were aware of the existence of alternative finance platforms, but just 14% had actually made use of one of them as a means of investing. Roughly 60% of respondents stated that they would be “unlikely” or “very unlikely” to begin or continue to use the platforms. Risk and security were the most commonly cited concerns.
  • 44% of SME borrowers – a most pertinent area of interest at the moment – knew about alternative finance in one form or the other, and yet just 10% had actually attempted to use a platform in order to secure funding. The reasons for this inactivity were: not needing finance (77%), being capable of accessing finance elsewhere (14%) and not knowing enough about the providers (9%).

These are but a handful of the many and various insights available within the report – which we’ve made available to download in full by following this link. 

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