What is the outlook for crowdfunding? And what does this mean for banks?
The trend is growing rapidly, driven by the advantages of this financing method in terms of transparency and proximity. In 2013, the amount raised will likely double to USD 5 billion, according to a study by US firm Massolution.
In France, crowdfunding is still limited by strict regulations that require participatory investment websites to be able to demonstrate considerable financial resources, among other things. Nonetheless, the amounts raised through these platforms total EUR 80 million, according to preliminary estimates. Some platforms are already backed by banking partners.
For banks, the rise of crowdfunding is a sign that customers expect simpler, more transparent and more traceable financing models that take into account the impact of Web 2.0, social networks and their aspirations. They are also looking to meet these expectations, and crowdfunding is a source of inspiration for them.continue reading