P2P Lending in Switzerland

April 7th, 2020
4 minutes read

The Swiss Market for Crowdlending

The newest and most comprehensive report on crowdfunding in Switzerland was carried by Prof Dr Andreas Dietrich and Simon Amrein from the Institute of Financial Services ZUG under the Hochschule Luzern. The institute monitors crowdfunding activities in Switzerland and publishes figures on an annual basis in an effort to improve transparency and identify key market trends.

The latest report is from 2019, which means crowdfunding platforms that were active in Switzerland in 2018 is included in the examination. Thus, in 2018, the total crowdfunding in Switzerland had a funding volume of 516 million CHF that was split between five different crowdfunding models: Crowdinvesting (equity-based crowdfunding), crowdlending (P2P lending), invoice trading, reward-based crowdfunding and donation-based crowdfunding. For our purpose, we will focus mainly on crowdlending that accounted for just above 50% of the total market in 2018 with a funding volume of 261.1 million CHF.  

Best Peer-to-Peer Lending Platforms in Switzerland

Here, you will find a list of the best peer-to-peer lending platforms in Switzerland. When choosing the best peer-to-peer lending sites in a country we consider a variety of factors that you can find in the Methodology below.

More P2P Lending Platforms in Switzerland

Below, you will find a list of the remaining peer-to-peer lending platforms located in Switzerland. If a new platform has been launched since this article was published and you do not see it here, please feel free to submit the platform by using the submit formula.

Logo of 3 Circle Funding
3 Circle Funding
Sharing Data
Sharing Data
Sharing Data
Logo of Creditfolio
Creditfolio
Sharing Data
Logo of Creditworld
Creditworld
Sharing Data
Logo of Crowd4Cash
Crowd4Cash
Sharing Data
Sharing Data
Sharing Data
Sharing Data

Crowdfunding in Switzerland

For a current view of the Swiss market for peer-to-peer lending and equity crowdfunding, you can visit our data-section for a monthly updated overview of platforms denominated in CHF. However, to have a greater historical complete overview, the data presented below will primarily be based on the Crowdfunding Monitor Switzerland 2019 report by Prof Dr Andreas Dietrich and Simon Amrein.

According to the report, a total of 37 crowdfunding platforms were active in Switzerland in April 2019 – and of these 19 were operating within crowdlending. The first crowdfunding platform to enter the Swiss market was the crowdlending platform Cashare in 2008. Since then more platforms have entered the market each year, but in 2018 the number of crowdfunding platforms operating in Switzerland dropped for the first time as four platforms withdrew from the market (Fengarion, bee Invested, moboo, and letshelp) and only two new platforms entered (Crowdpark and SIG Impact).

The total crowdfunding market in Switzerland in 2018 was 516.7m CHF split between crowdlending (261.9m CHF), crowdinvesting (204.9m CHF), reward- and donation-based crowdfunding (25.6m CHF), and invoice trading (24.3m CHF). Below, you can see a figure showing the development in Swiss crowdfunding from 2012-2018.

Crowdfunding statistics in Switzerland from 2012 to 2018

Statistics About Crowdlending in Switzerland

Crowdlending in Switzerland consists of three different business models: consumer crowdlending, business crowdlending, and real estate crowdlending (property crowdlending). In 2018, the crowdlending market in Switzerland had a year-on-year growth rate of 9.6%, growing from 186.7m CHF in 2017 to 261.9m CHF in 2018, which represents a significantly slow down compared to an average growth rate of 129.5% from 2012-2017. Like the previous years, business crowdlending represented the largest segment with a market share of 51,3%. However, the fastest growth came from real estate crowdlending that went from a funding volume of 23.1m CHF in 2017 to 70.5m CHF in 2018 corresponding to a growth of 205.2%.

Below, you can see how crowdlending in Switzerland has developed from 2015-2018.

Switzerland Crowdlending Statistics from 2015 to 2018

When it comes to crowdlending in continental Europe, France had the highest funding volume of all countries with a total funding volume of €410.7 million, closely followed by Germany with a funding volume of €396.7 million. However, the UK is by far the biggest player in the European region with a total funding of £4,660 million. Thus, it must be assumed that Switzerland still has plenty of room for further growth going forward.

Taxation on Crowdlending in Switzerland

The legislation on financial markets in Switzerland is designed to be technologically neutral, why there are no specific rules for crowdlending. How crowdlending is taxed in Switzerland, therefore, depends on the business model of the crowdlending platform. You can read about taxation on crowdlending and other crowdfunding types here. If the crowdlending model you are interested in involves an Inicial Coin Offering (ICO), this article about crowdfunding, ICO’s and tax aspects might also be worth a read.

Regulation on Crowdlending in Switzerland

Like in many other countries, regulation has been a challenge for the development of crowdlending and FinTech in Switzerland. The Federal Government in Switzerland, therefore, started a process back in 2017 looking at possible changes to the banking legislation and how to remove barriers of entry for FinTech companies. This resulted in, among others, that from January 1, 2019, companies outside traditional banking can accept public deposits up to a maximum of 100m CHF with less strict requirements than previously. 

If you want to know about how the crowdlending market is regulated in Switzerland, you can read more in the documents found attached to the press release found here.

Methodology

At P2PMarketData we are dedicated to providing an unbiased overview of the Peer-to-Peer Lending market and platforms. Among other, in our mission to bring more transparency to the market for online lending we track over 70 platforms funding volumes.

When choosing the best platforms in a country we have considered a variety of factors such as:

  • Number of investors
  • Minimum investment requirement
  • Historical annual returns
  • Diversification opportunities
  • Reinvestment opportunities
  • Educational and informational offerings
  • Platform fees
  • Total capital invested
  • Features (such as secondary market and automatic investing)
  • General transparency (the difficulty of finding who the owners are, how they make money on the platform (fees), terms & conditions and more)
  • Management team

We also look into the company’s online reputation (for example customer reviews, news, complaints, average monthly searches and social media).