The global online finance industry provides ability to lend and borrow money using the internet. Online financing is increasingly becoming the preferred method of debt financing as it offers optimal convenience and time efficiency by eliminating any involvement of middlemen or banking institutions. Factors such as, growing number of internet and mobile users along with developments in web technology are further fuelling the market for global online finance.
Online finance industry has emerged as a boon to the marginalized borrowers like small and medium-sized businesses (SMBs) that have been unable to get capital investments from other banking and financial institutions, as they are subject to higher risks. Big data and artificial intelligence are expected to play a major role in this market, as the online lenders rely on credit score rating and risk analysis in order to manage individual portfolios and avoid firm-wide risks.
Rising use of internet has also enabled crowdfunding to become a primary source of revenue for many entrepreneurs. Crowdfunding is a method of generating capital funds for a cause, project or enterprise by acquiring funds from many individuals. Crowdfunding is segmented into peer to peer lending, equity investment, hybrid based, royalty based, donation and reward-based. The global crowdfunding market is expected to grow with the wide availability of new crowdfunding platforms.
Online investing is another emerging trend which offers self-directed investing through online services. It provides a cheaper alternative to traditional investment methods in order to purchase and sell various securities, including, mutual funds, options, equities and fixed income. Though online investment market proves to be a convenient and highly accessible service for investors, it carries a certain degree of risk as investors need to choose the appropriate broker service and invest intelligently. Investors need to have precise knowledge of markets and investing.
ASDReport.com has a rich collection of reports on online finance market covering various topics and products related to internet financing, crowdfunding, subscription and billing management, financial technology and much more.