The all-time high of the Swiss Crowdlending volume dates back to 2021, when a record volume of CHF 607 million was achieved. Since then, however, it has fallen to CHF 398.1 million in 2023.
Different Developments within Crowdlending
Within the Crowdlending segment, the three different business models (consumer, business, and real estate) have developed differently. Business crowdlending accounted for CHF 132.8 million in 2023, a slight decrease in volume compared to the previous year (CHF 141.9 million, -6.4%). The volume of consumer crowdlending, i.e. the granting of loans to private individuals, fell by 15.8 per cent compared to the previous year (CHF 72.9 million) and now amounts to CHF 61.4 million. The real estate crowdlending segment recorded a significant decline of 27.9 per cent to CHF 203.9 million in 2023.
Source: IFZ Crowdfunding Monitor 2024
Therefore, the sharpest decline of the Crowdlending volumes was recorded in real estate financing. There are various reasons for these developments. On the one hand, higher interest rates can have a somewhat inhibiting effects on the demand for credit in general. On the other hand, the growth of sub-sectors such as real estate financing always depends heavily on the development of individual platforms and the competitive situation.
Average Loan Amounts
The loan amounts granted in crowdlending vary depending on the segment. The average loan volume for SME loans was around CHF 235,000 (previous year: approx. CHF 250,000). In consumer crowdlending, the average loan amounts were unchanged at around CHF 39,500. In real estate crowdlending, the average loan volume 2023 was around CHF 960,000.
Market Participants
At the end of 2023, a total of twelve platforms were processing crowdlending loans in Switzerland. The five largest platforms achieved a market share of 80 percent. The various crowdlending platforms pursue different strategies with regard to the loan products they offer. While some platforms are only active in one crowdlending segment, other crowdlending platforms offer all three types of loans.
Three major market participants in the Crowdlending segment are SMLA members: Lend/splendit, Swisspeers, and CG24. As market transparency is one of the main goals of the SMLA, these member platforms will share additional data on risk and return of their loans in the SMLA’s annual Marketplace Lending Report (will be published in October).
Here you can download the study (German only): https://hub.hslu.ch/retailbanking/download/crowdfunding-monitor-schweiz/