Crowdlending and Financial Inclusion Evidence from EU Countries

Abstract

The paper focuses on the most recent developments in the field of alternative finance business models, called crowdfunding. Based on most recent data, this paper highlights the market size of this alternative finance segment and its growth prospects across European Union member states. An indirect outcome of the paper consists in revealing the degree of financial exclusion from traditional banking products and services and whether it is linked with a higher incidence of transactions on crowdfunding platforms. The assumption to be further investigated relies on the hypothesis that unbanked people, which are excluded by conventional financial institutions, have a sound opportunity to raise money to fund their small-size investment projects or start-ups by relying on crowdfunding.