New Directions in Crowdfunding

Abstract

The fundraising campaigns realised through popular online crowdfunding platforms seem to be exhibiting unstoppable expansion, with the phenomenon reaching an increasing number of people and doubling its turnover year after year. Crowdfunding is one of the most dynamically growing segments of fintech but at the same time, the academic world is voicing justified scepticism in respect of the sustainability and operating background of the original model. For the time being, the position of banks is protected by the legislative and regulatory background, but digitally advanced users are seeking out wallet-friendly and convenient solutions for the administration of their financial affairs as well. According to certain estimates, bank revenues could drop by as much as 20% by 2023 due to the rise of the fintech sector, and one third of bank employees could lose their jobs in ten years. Equity-based crowdfunding has the potential to become an alternative to traditional corporate and project-financing techniques. The community-forming power of online fundraising platforms is strong, and certain campaigns may also serve market communication purposes.