Facts about Alternative Finance in the UK (click to enlarge)
I’ve been looking at alternative finance schemes for a few months now. There’s a lot of them and it’s not always straightforward comparing and contrasting them. Consequently it’s helpful that Nesta, partnering with the University of Cambridge, have just produced a large scale survey of the sector (the report is a free download, see links below):
Say ‘financial innovation’ and what comes to mind for many is the investment banks and complex products that were at the centre of the financial crisis. Yet in recent years we’ve seen the term become associated with a new type of finance provider, those businesses and online platforms gathering under the banner of alternative finance.
Finance models such as crowdfunding and peer-to-peer lending are at the heart of this as they harness internet technologies to bring those with money and those who need it closer together and aggregate numerous small investments or donations to meet large funding needs. Businesses, community groups and individuals are using this industry to either get funding they cannot access elsewhere or to get it quicker and on better terms.