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The past few decades have observed the growing impact of alternative financing on the global economy. It has also increased the productive capacity of the global economy. In terms of alternative finance market volume per capita, the UK witnessed the highest penetration in Europe. The growing interest in the real estate market in the country propelled the demand for alternative financing in the country.

In Asia, local fin-tech startup firms have been aggressively scaling up their operation to meet the growing demand for non-traditional capital. Major technology firms such as Grab and Go-Jek initiated lending services in the region. Alternative finance permitted Chinese firms to partially circumvent credit barriers, thus enabling a better resource distribution and a higher production level. In other emerging economies such as Brazil and Mexico, they served a similar lending purpose as well as fulfilled payments and remittances requests. In Brazil, the severe banking crisis hampered the region’s growth for more than a decade. Companies such as Geru, Creditas, and GuiaBolso have gained the support of the Brazilian government as they reduced the borrowing costs of the consumers and democratized the lending process.