Crowd Funding as a Promising Alternative Model of Bank Lending

DOI

10.2991/aebmr.k.201215.007How to use a DOI?

Keywords

crowdfunding, credit, bank, business, financial project, technology, efficiency, entrepreneurs, investors, funds

Abstract

The article examines the theoretical aspects of crowdfunding technology and generalizes methodological approaches to crowdfunding types. The emphasis is primarily that crowdfunding is an innovative tool for financing business projects and is a promising counterpart to bank lending. The main advantages and disadvantages of crowdfunding in comparison with bank credit have been identified. The leading foreign experience of using this financing instrument has been analyzed, and its dynamic development has been proved based on statistical data analysis. The state of the Russian crowdfunding market has been studied, and specific features of its functioning have been revealed. Based on the analysis of crowdfunding trends in economically developed countries and specific features of national crowdfinancing the main directions for increasing the effective functioning and further development thereof as a promising and alternative model of bank lending in Russia are proposed. Scientific and practical recommendations have been put forward, such as the Creating an appropriate legal framework in the field of crowdfinancing; encouraging different types of individual investors to enter the crowdfunding market through transparent fund-raising and the ease of the transfer itself; establishing risk minimization mechanisms for non-professional investors by diversifying the level of investment; developing crowdfunding infrastructure.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Natalia Melnikova
AU  - Tatyana Zaitseva
AU  - Natalia Putivtseva
AU  - Egor Belotserkovsky
PY  - 2020
DA  - 2020/12/17
TI  - Crowd Funding as a Promising Alternative Model of Bank Lending
BT  - Proceedings of the 8th International Conference on Contemporary Problems in the Development of Economic, Financial and Credit Systems (DEFCS 2020)
PB  - Atlantis Press
SP  - 31
EP  - 34
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201215.007
DO  - 10.2991/aebmr.k.201215.007
ID  - Melnikova2020
ER  -