A comprehensive research on crowdfunding trends in the Swiss market has been released by the “Institute of Financial Services Zug IFZ” for the third year presenting the developments in the country, comparing these to other key markets and the genres that present the highest rise.
Profile Software was a pioneer in this domain by presenting the trends to the Swiss market in a thought provoking event – dating back a year - with the support of established crowdfunding platforms in the country. It seems that the industry has grown in Switzerland with more platforms joining in. For example there are 13 new crowdfunding platforms operating in the Swiss market in just over a year.
The crowdlending is experiencing the highest growth (127%) more in terms of SMEs rather than individuals, however still lower than the UK counterparties. In addition the real estate investment is also preferred with crowdinvesting presenting a 54% rise in funds. Definitely reward-based crowdfunding/ crowddonating is the preferred alternative financing model in Switzerland and almost doubled in volumes with investments in technology, business and start-ups to attract the majority of the funds.
The research continues by analysing key characteristics of the campaigns i.e. duration, project description, backers’ profile and expectations, taxation as well as comparison to other crowdfunding projects in Europe. In the latter, it becomes apparent that the UK is by far the most developed crowdfunding and P2P Lending market in Europe with funds raised to amount at 4.7bn (CHF) (in 2015).
It seems that crowdlending and crowdinvesting are the two categories that are expected to experience significant growth over the coming years, in the country. Banks are also interested in these however regulation needs to be more flexible to support this expansion.
Profile Software’s innovative system for alternative finance not only covers end-to-end the needs of crowdfunding platforms but in addition it can effectively accommodate the digital banks’ requirements especially as there is a tendency of the banks to utilise alternative finance channels.
Moreover, Profile Software apart from presenting its FinTech solutions in the Swiss and UK markets it also approaches the Middle Eastern and Asian markets with great success. Watch Profile’s regional Managing Director, Akash Anand, talking to Hubbis about the ways that Profile can assist firms best utilise the “digital opportunities”, here.