Many people wonder, what will happen in the future. Well, we at FundedByMe don’t have a crystal ball, but we can forecast how they year 2015 will be for crowdfunding in Asia. So here it is.
Right now you may observe 3 main phenomenons in the APAC region that let you to estimate about the future of crowdfunding:
- The social / mobile / chat obsessed citizens
- Economics of E-commerce and E-finance
- Innovation in reducing the unbanked rate
Some numbers proving this you will find below. But what do they actually mean for the industry? Let’s take it step by step. More and more people who spend their lives on mobile chat applications will result in changing global pattern behaviours. Not only will we be able to do anything using our mobile devices, but we will also expect shorter offers, long creditable relationships and faster payments that we can handle with any smartphone. And you know very well there is always supply where the demand is.
Strong growth of e-commerce is usually the first step of strong growth in P2P finance. If you want to talk about e-commerce market in Asia, the relevant word would be “explosion”. And so it is with crowdfunding you should probably use “booming” as well. In China alone we can see a market size of estimated 40 billion USD, while a couple of years ago the industry didn’t exist at all. The Asian states are being more aware of the role of the industry and start to implement regulations for it – Malaysia was the first country doing this (and btw. FundedByMe with its partner are one of the first companies receiving the license for equity based crowdfunding).
Finally, crowdfunding significantly helps to decrease the rate of people who are not banked at all or are underbanked. Why? Because it can be used by people who have no credit history! Just check what happened in Kenya thank to M-PESA, a Mobile Phone Payment System. Right now the number of M-PESA users is higher than bank account holders.
Want to learn more details? Watch the performance by Adrian Koh,in the APAC region, and check a presentation by him.