This report highlights that whilst alternative finance remains small as a proportion of overall credit outstanding in the financial system of many countries, it is growing rapidly. Australia is fast becoming a regional leader (behind China), which is evidenced by the substantial growth of alternative finance compared with the low base of US$27 million reported in 2013.
The research was conducted by a research team from the Cambridge Centre for Alternative Finance, the Australian Centre for Financial Studies at Monash Business School and the Tsinghua University Graduate School at Shenzhen, in collaboration with KPMG and with the support of the CME Group Foundation and HNA Capital.
The report surveyed alternative finance industry perceptions of regulation across the region. It found that, in Australia, 65 percent of platforms believe that existing regulations are adequate and appropriate which was an improvement on last year’s survey. Notwithstanding this, there are a number of potential vulnerabilities that might impede future growth which need to be identified, understood and prudently managed for the long-term viability of the sector.