Many people wonder what might happen in the future. We at FundedByMe don’t have a crystal ball, but we can forecast how the year 2015 will be for crowdfunding in Asia. So here it is.
Right now you can see 3 main phenomenons in the APAC region that lets you predict the future of crowdfunding:
- The social / mobile / chat obsessed citizens
- Economics of E-commerce and E-finance
- Innovation in reducing the unbanked rate
You will find some of the numbers 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 behaviour patterns. Not only we will be able to do anything using our mobile devices, but also will expect shorter offers, long creditable relationships and faster payments that we can handle with any smartphone. And you know very well where there is demand, there is supply.
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 with crowdfunding you should probably use “booming” as well. In China alone the market size is estimated to be $40 billion USD, where just a couple 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 by the way, 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, FundedByMe General Manager in the APAC region, and check a presentation by him.