Crowdlending is a big hit in Switzerland and platforms are registering huge rates of growth. The main boost comes from one class of investors in particular.
The Swiss crowdlending industry has posted a rapid rate of growth in 2018, according to a study compiled by the Lucerne University of Applied Sciences and Arts together with the Swiss Marketplace Lending Association and pwc.
Thirteen digital platforms financed projects with loans worth a total 262 million Swiss francs ($258 million), that’s 40 percent up from a year earlier. In 2015, the volume of brokered loans was a paltry 8.4 million francs (3.2 percent of the current volume).
Institutional Interest
The increase was heavily influenced by the interest from institutional investors such as asset managers, family offices, funds and also rich people, the study authors concluded. Demand from this class of investors is likely to increase as long as the central bank keeps interest rates below zero.
As soon as the industry reaches the benchmark of 1 billion francs, institutional investors will likely snap up an even bigger share of the market, according to the study.
