Prominent Alternative Finance Market Trend for 2025: Innovative Strategies In Alternative Finance LGIM's Short-Term Private Credit Fund Launch

What market dynamics are playing a key role in accelerating the growth of the alternative finance market?
The growth of the alternative finance market is predicted to be driven by the rising number of small and medium-sized businesses. These are entities that meet particular criteria based on employee numbers, annual turnover, or assets. Growth in the number of these businesses has been spurred by several factors such as crowdfunding, peer-to-peer lending, business development programs, and tax benefits. Alternative finance benefits small and medium-sized businesses by offering varied and accessible methods of funding, addressing the issues and challenges posed by traditional finance options. For example, the Department for Business and Trade, a government agency in the UK, reported that the number of small and medium-sized businesses grew from 5.50 million in 2022 to 5.54 million in 2023 in October 2023. Therefore, the rise in the number of small and medium-sized businesses is fueling the growth of the alternative finance market.

Get Your Alternative Finance Market Report Here:
https://www.thebusinessresearchcompany.com/report/alternative-finance-global-market-report

How will the growth rate of the alternative finance market shape industry trends by 2034?
In recent times, the alternative finance market has seen a phenomenal expansion in its size. It is projected to increase from $260.65 billion in 2024 to $316.25 billion in 2025, with a compound annual growth rate (CAGR) of 21.3%. The historic phase of growth can be linked to several factors such as the emergence of online platforms and social media, the burgeoning acceptance of peer-to-peer lending, the growing use of cryptocurrency and blockchain, the upsurge in sustainability and green finance, and the prominence of embedded finance.

Expectations are high for the alternative finance market, as it's predicted to witness a significant surge in size over the coming years. By 2029, it's anticipated to reach a value of $676.67 billion, growing at a compound annual growth rate (CAGR) of 20.9%. This predicted advancement in the forecast period can be attributed to a variety of factors including the increase in technology-based lenders, the popularization of decentralized finance, the expanding use of artificial intelligence, the rising fame of initial coin offerings, and the growth in microfinance activities. The forecast period is also predicted to see key trends such as a rapid pace of technological advancement, increasing use of AI and data analytics, a surge in the adoption of the internet-of-things (IoT), and the rise in blockchain-supported alternative lending platforms.

Get Your Free Sample Now - Explore Exclusive Market Insights:
https://www.thebusinessresearchcompany.com/sample.aspx?id=16586&type=smp

What trends are poised to drive the future success of the alternative finance market?
Leading businesses in the alternative finance segment are concentrating their efforts on developing pioneering services like the Short-Term Alternative Finance Fund to solidify their footing in the industry. This fund serves as an investment medium dedicated to private credit assets falling within a one-year duration, giving institutional investors a stable alternative to cash and short-termed credit choices. In a noteworthy example from 2024, UK-based Legal & General Investment Management (LGIM) unveiled its own well-crafted Short-Term Alternative Finance Fund catering to investor's needs for stable, short-term credit solutions. Nested within LGIM's novel RAIF platform, the fund caters to a rising demand for liquidity-centered private credit opportunities which include trade receivables and asset-backed financing. It targets a clientele that includes pension funds and insurance groups. This development highlights a wider shift within the industry, with institutions progressively preferring private credit assets surpassing conventional cash reserves. This preference arises from greater potential yields and effective risk management policies.

Which primary segments of the alternative finance market are driving growth and industry transformations?
The alternative finance market covered in this report is segmented -

1) By Type: Peer-To-Peer Lending, Crowdfunding, Invoice Trading, Other Types
2) By Business Model: Traditional Lending, Alternate Marketplace Lending
3) By End User: Enterprise, Individuals

Subsegments:
1) By Peer-To-Peer (P2P) Lending: Consumer P2P Lending, Business P2P Lending, Real Estate P2P Lending, Marketplace Lending
2) By Crowdfunding: Equity Crowdfunding, Reward-Based Crowdfunding, Donation-Based Crowdfunding, Debt Crowdfunding
3) By Invoice Trading: Invoice Factoring, Invoice Discounting, Supply Chain Financing, Reverse Factoring
4) By Other Types: Revenue-Based Financing, Equity-Based Financing, Asset-Backed Lending, Cryptocurrencies And Blockchain-Based Financing, Initial Coin Offerings (ICOs), Venture Debt Financing

Unlock Exclusive Market Insights - Purchase Your Research Report Now!
https://www.thebusinessresearchcompany.com/purchaseoptions.aspx?id=16586

Which geographical regions are pioneering growth in the alternative finance market?
North America was the largest region in the alternative finance market in 2024. The regions covered in the alternative finance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Who are the influential players reshaping the alternative finance market landscape?
Major companies operating in the alternative finance market are PayPal Holdings Inc., Rocket Mortgage, Bread Financial Holdings, Coinbase Global Inc., Social Finance Inc., Affirm Inc., LendingClub Corporation, OnDeck Capital Inc., Fiverr International Ltd., Betterment Holdings Inc., Funding Circle Holdings plc, Prosper Marketplace Inc., RateSetter, Wealthfront Corporation, OurCrowd Ltd., Freelancer Technology Pty Limited, FundingKnight, Indiegogo Inc., Landbay Partners Limited, Assetz Capital, Kiva Microfunds, Kickstarter PBC

Customize Your Report - Get Tailored Market Insights!
https://www.thebusinessresearchcompany.com/customise?id=16586&type=smp

What Is Covered In The Alternative Finance Global Market Report?

•Market Size Forecast: Examine the alternative finance market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the alternative finance market for a structured understanding.
•Key Players Overview: Analyze major players in the alternative finance market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the alternative finance market.
•Segment Contributions: Evaluate how different segments drive overall growth in the alternative finance market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the alternative finance market.
•Industry Challenges: Identify potential risks and obstacles affecting the alternative finance market.
•Competitive Landscape: Review strategic developments in the alternative finance market, including expansions, agreements, and new product launches.

Learn More About The Business Research Company
With over 15000+ reports from 27 industries covering 60+ geographies, The Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Armed with 1,500,000 datasets, the optimistic contribution of in-depth secondary research, and unique insights from industry leaders, you can get the information you need to stay ahead.
Our flagship product, the Global Market Model (GMM), is a premier market intelligence platform delivering comprehensive and updated forecasts to support informed decision-making.

Contact Us:
The Business Research Company
Europe: +44 207 1930 708
Asia: +91 88972 63534
Americas: +1 315 623 0293
Email: info@tbrc.info

Follow Us On:
LinkedIn: https://in.linkedin.com/company/the-business-research-company
Twitter: https://twitter.com/tbrc_info
YouTube: https://www.youtube.com/channel/UC24_fI0rV8cR5DxlCpgmyFQ

Connect with us on:
LinkedIn: https://in.linkedin.com/company/the-business-research-company,
Twitter: https://twitter.com/tbrc_info,
YouTube: https://www.youtube.com/channel/UC24_fI0rV8cR5DxlCpgmyFQ.

Contact Us
Europe: +44 207 1930 708,
Asia: +91 88972 63534,
Americas: +1 315 623 0293 or
Email: mailto:info@tbrc.info

Learn More About The Business Research Company
With over 15,000+ reports from 27 industries covering 60+ geographies, The Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Our flagship product, the Global Market Model delivers comprehensive and updated forecasts to support informed decision-making.

This release was published on openPR.