EU Main Players in the Lending-Based Crowdfunding Market

This chapter examines the evolution and current state of lending-based crowdfunding within the broader context of financial technology. Specifically, the chapter describes the lending-based crowdfunding (LBC) model, also known as peer-to-peer (P2P) lending or the 4lending-crowdfunding marketplace. This model represents the third largest alternative finance model in Europe after P2P/marketplace consumer lending and the invoice trading platforms. Due to the relevance of this crowdfunding model in the European context, this chapter, adopting a theoretical perspective, provides an overview of the main LBC players across the main European countries. Data from the European Securities and Markets Authority (ESMA) Register and specialized aggregators support an analysis of platform characteristics across France, Spain, Italy, and Germany, highlighting significant heterogeneity in maturity, business model, and sector specialization. The chapter also offers an outlook on the future of LBC in Europe, emphasizing the expected influence of emerging regulatory frameworks, technological advancements such as artificial intelligence (AI) and blockchain, and a growing focus on sustainability. Overall, the evidence suggests that digital lending platforms are transforming the financial model, making them a critical component of the modern financial ecosystem.