The UK’s alternative finance market has grown beyond all expectations during the last twelve months. It is now one of the biggest and strongest in Europe, and that trend looks set to continue. The information on this page should help to shed some light on the situation and offer some expert opinions. The facts below might seem shocking to some readers, but they just serve to highlight how the alternative finance industry is thriving right now. Is it a good time to launch a new brand in that marketplace? Almost certainly! Entrepreneurs stand a decent chance of making a fortune if they play their cards right. Here’s why.
The UK is at the forefront of the alternative finance market which grew 84% last year
The Innovation Foundation Nesta conducted some research and released a report earlier this year that highlighted the state of the market. The specialists concluded that the UK made more profit from alternative finance during the last twelve months than any other country in Europe. The sector grew by a staggering percentage during that time, with Nesta claiming the industry is now bigger than ever. Experts argue that is because companies working within the market have now become a little more sophisticated than they were in the past. Brands now plan for future growth by focusing their efforts on:
- Limiting risk
- Complying with regulations
- Creating in-house legal teams
The UK alternative finance industry will be worth £12.3 billion by 2020
If things continue on the same path for a few years, experts predict the alternative finance sector will reach at least £12.3 billion in the UK by the end of the decade. That news comes thanks to a report from financial services technology providers Fiserv. Those specialists claim the increase will happen as more small business owners begin to benefit from peer to peer lending and crowdfunding opportunities. Brands that offer no credit check loan will also help to push the market in the right direction. The most widely used alternative financial services include:
- Short-term loans
- P2P lending platforms
52% of UK small business owners are now aware of alternative finance
It stands to reason that awareness is half the battle in marketplaces of this nature. So, the fact that more than 50% of small business owners now understand their alternative finance options is a positive thing. It should mean that more entrepreneurs think outside the box when it comes to funding their ideas and operations in the future. Indeed, that is the factor that is most likely to ensure the market continues to grow at a staggering rate during the next couple of years.
With a bit of luck, the information from this page should have helped to highlight the realities of the alternative finance situation in the UK today. The industry is booming, and that doesn’t look like it’s going to change anytime soon. Every reader would benefit from educating themselves about alternative finance and ensuring they understand all the options on the table moving forwards. Most folks have realised they can’t rely on the banks to assist these days.