Switzerland Alternative Lending Market Business and Investment Opportunities Databook – 75+ KPIs on Alternative Lending Market Size, By End User, By Finance Model, By Payment Instrument, By Loan Type and Demographics - Q2 2024 Update

Switzerland Alternative Lending Market Business and Investment Opportunities Databook – 75+ KPIs on Alternative Lending Market Size, By End User, By Finance Model, By Payment Instrument, By Loan Type and Demographics - Q2 2024 Update

According to PayNXT360, the alternative lending in the country is expected to grow by 12.9% on an annual basis to reach US$356.3 million in 2024.

Medium to long term growth story of alternative lending in Switzerland remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 8.4% during 2024-2028. The alternative lending market in the country will increase from US$315.7 million in 2023 to reach US$491.9 million by 2028.

The alternative lending sector in Switzerland is experiencing robust growth, driven by increased institutional and SME participation, alongside innovations like sustainability-linked and green loans. Strategic partnerships and emerging platforms such as ZoodPay and Swisspeers are expanding financing options. However, regulatory changes, including the recent UBS-Credit Suisse merger and new ESG reporting requirements, are reshaping the landscape. Despite the challenges, the sector is poised for continued expansion, reflecting a shift towards more flexible and sustainable financial solutions.

Growth in the Alternative Lending Sector

Alternative lending in Switzerland, particularly marketplace lending, has grown due to increased participation from institutional investors, SMEs, and large corporate segments, as traditional banks face tighter lending conditions and higher borrowing costs. In the next few months, alternative lending is expected to continue growing due to positive market adjustments to interest rate changes and increasing emphasis on sustainable finance practices by lenders.

Key Developments in the Alternative Lending Sector

Product Launches and Innovations

• Sustainability-Linked Loans - Swiss banks are offering sustainability-linked loans, tying the interest rate to the borrower's sustainability performance. For instance, Zürcher Kantonalbank introduced a sustainability-linked loan product in 2023 to incentivize SMEs to enhance their environmental and social impact.

• Green Loans - The number of green bonds traded on the SIX Swiss Exchange increased from 2022 to 2023, indicating growing demand for sustainable debt products. Banks are responding by offering green loans to finance environmentally friendly projects and initiatives.

• Marketplace Lending Platforms - Marketplace lending platforms connecting institutional investors with SME and corporate borrowers have seen significant growth in Switzerland. For example, Swisspeers, a P2P marketplace for business loans, has been expanding its offerings to meet the demand for alternative financing.

• Buy Now, Pay Later (BNPL) - ZoodPay, a point-of-sale financing platform, launched its BNPL solution in Switzerland in 2023, allowing consumers to buy products and pay in monthly installments as an alternative to traditional credit cards.

Strategic Partnerships

• ZoodPay and Retail Partners: ZoodPay has partnered with retail businesses to offer its ""buy now, pay later"" option across different sectors.

• Swisspeers and Financial Institutions: Swisspeers has collaborated with local banks to offer tailored financing solutions for SMEs, enhancing access to capital through its peer-to-peer lending platform.

• Teylor and Banking Institutions: Taylor has partnered with banks to automate their lending processes for small and medium-sized enterprises, leveraging its cloud-based technology to streamline operations and improve customer experience.
 
Mergers and Acquisitions

UBS and Credit Suisse Merger: The most notable event was the completion of the merger between UBS and Credit Suisse, which was finalized in June 2023. This merger has significant implications for the alternative lending market, as it consolidates two major players in the Swiss financial landscape, potentially reshaping the competitive dynamics within the sector.

Regulatory Changes

• Proposed Investment Control Act - On December 15, 2023, the Swiss government published a draft Investment Control Act proposing minimal restrictions on foreign acquisitions of Swiss businesses. Acquisitions would only be notifiable if the target company is active in sensitive sectors like defense or has a market share above 5% in certain markets. The draft is currently being deliberated in parliament and is not expected to take effect before 2025.

• Withholding Tax Reform Rejected - In September 2022, Swiss voters rejected a proposal by the Federal Council to abolish the withholding tax on interest payments to foreign investors. This missed an opportunity to reform the so-called ""10/20 Non-Bank Rule,"" which limits the number of non-bank lenders participating in financing to avoid triggering the 35% withholding tax. The rule continues to impact the structuring of cross-border loans to Swiss borrowers.

• ESG Reporting Requirements - New ESG reporting requirements modeled on the EU's Non-Financial Reporting Directive took effect in Switzerland starting with the 2023 financial year. Public interest entities like banks and insurance companies with over 500 employees and CHF 20 million in assets or CHF 40 million in revenue must now publish annual reports on their environmental and social impacts.

• Credit Suisse Merger - In March 2023, the Swiss government supported the merger of Credit Suisse into UBS to resolve an acute crisis of confidence at Credit Suisse. Measures included a CHF 9 billion federal loss protection guarantee for UBS and liquidity assistance loans from the Swiss National Bank. The too-big-to-fail regulations are now being comprehensively reviewed.

These regulatory developments demonstrate the Swiss government's cautious approach to foreign investment, its reluctance to reform withholding taxes, and its focus on financial stability and ESG reporting in the alternative lending space.

This report provides a detailed data-centric analysis of the Alternative Lending industry, covering market opportunities and risks across a range of industry categories. With over 50 KPIs at the country level, this report provides a comprehensive understanding of Alternative Lending market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunity by type of payment instrument, loan types, and consumer behavior. In addition, it provides a snapshot of marketing objective and industry spend dynamics in Switzerland. KPIs in both value and share term help in getting in-depth understanding of end market dynamics.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.

Scope

This report provides in-depth data-centric analysis of Alternative Lending industry in Switzerland through 125 tables and 150 charts. Below is a summary of key market segments:

Switzerland Economic Indicators
• Gross Domestic Product at Current Prices
• Population
• Unbanked Population
• Unemployment Rate
• Loan Default Rate

Switzerland Alternative Lending Market Size and Forecast
• Transaction Value
• Average Transaction Value
• Transaction Volume

Switzerland Alternative Lending Market Size and Forecast by End User
• End User - Business
• End User - Consumer

Switzerland Alternative Lending Market Size and Forecast by Finance Models
• P2P Marketplace Consumer Lending
• P2P Marketplace Business Lending
• P2P Marketplace Property Lending
• Balance Sheet Consumer Lending
• Balance Sheet Business Lending
• Balance Sheet Property Lending
• Invoice Trading
• Debt Based Securities
• Equity Based Crowd Funding
• Real Estate Crowd funding

Switzerland Alternative Lending Market Size and Forecast by Payment Instrument - Transaction Value, Volume and Average Value
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money

Switzerland Alternative Lending Market Size and Forecast by Payment Instrument to Model
• Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Consumer Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Business Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Property Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Consumer Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Business Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Property Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Invoice Trading
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Debt Based Securities
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Equity Based Crowd Funding
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Real Estate Crowd funding
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money

Switzerland Alternative Lending Market Size and Forecast by Loan Types
• B2C Loans
• Personal Loan
• Payroll Advance
• Home Improvement
• Education/Student Loans
• Point of Sale
• Auto Loans
• Medical Loans
• B2B Loans
• Lines of Credit
• Merchant Cash Advance
• Invoice Factoring
• Revenue Financing

Switzerland Alternative Lending Analysis by Consumer Attitude and Behaviour
• By Age
• By Income
• Gender

Reasons to buy

• Gain a thorough understanding of the Alternative Lending market dynamics: Market opportunities, significant trends, and forecasting (2019 – 2028) are listed. To stay ahead of the curve, comprehend market trends using important KPIs like Value and Share.

• Insights by Industry: Evaluate new opportunities across multiple industries, and obtain market dynamics by industry in order to swiftly catch up with the latest and upcoming developments in Alternative Lending markets.

• Market-specific strategies: With our unique blend of quantitative forecasting and cutting-edge insights, we can identify growth sectors that are focused on particular opportunities and analyse market-specific risks as well as significant trends in the Alternative Lending industry.

• Through industry intelligence, forward-looking research of Alternative Lending market spend, and key opportunities in Switzerland, develop proactive and profitable company plans.