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The Evolution of Debt Crowdfunding Business Models
Amalian A. W., Amalyan N. D.

Amalian, Arutiun W., and Amalyan, Natalia D. (2019) “The Evolution of Debt Crowdfunding Business Models.” Business Inform 5:174–179.
https://doi.org/10.32983/2222-4459-2019-5-174-179

Section: Finance, Money Circulation and Credit

Article is written in Ukrainian
Downloads/views: 4

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UDC 657.412

Abstract:
The entire period after the global financial crisis unfolded, lenders suffer losses due to ultra-low interest rates, while entrepreneurs suffer from a shortage of bank loans. The emergence and accelerated development of various forms of crowdfunding, i.e, in literal translation – “funding by the crowd” has become a logical solution to the problem. The evolution of one of its varieties — namely, debt crowdfunding — is the research subject of this article. Studying activities of crowdfunding platforms allows to select six basic business models, only three of which operate on the basis of simple matching of lenders with borrowers (P2P is a model for mediation in unsecured borrowing, a balance and hybrid model). The three most recent business models of crowdfunding platforms are associated with securitizing loans, issuing transit securities and selling loans entirely. Analysis of the economic essence of the new types of platform operations gives grounds for concluding that the so-called “disintermediation” period of the market is ending, being replaced by the expansion of new financial engineering products with the corresponding subsequent development of this market.

Keywords: debt crowdfunding, platform, institutional investor, securitization, loan market, disintermediation.

Bibl.: 19.

Amalian Arutiun W. – Candidate of Sciences (Economics), Financial Director, Optimatrading LLC (office 301, 3 floor 12 Antona Tsedika Str., Kyiv, 03057, Ukraine)
Email: [email protected]
Amalyan Natalia D. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Ukrainian-American Concordia University (8-14 Turhenievska Str., Kyiv, 01601, Ukraine)
Email: [email protected]

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