Alternative finance index launches

The Crowdfunding and Marketplace Finance Index (CAMFI) has launched to distil the overall health of the alternative finance market down to a single number to help investors.

Alternative finance index launches

CAMFI, a partnership between the UK’s TAB and China’s BBD and AIF, highlights the emergence of alternative finance as a new asset class. The index aims to monitor the health of the global online crowdfunding and marketplace finance industry, providing previously unavailable insight.

It aims to analyse more than 4,800 global platforms to estimate the overall monthly climate of the global marketplace finance and crowdfunding industry, weighting the rewards, equity and debt markets, to create a single global metric. The latest CAMFI figures show the industry experienced an overall downward trend in June, with CAMFI dropping from 103.40 in May to 87.95 in June, a decrease of -14.9%.

CAMFI

“CAMFI is a true world first in distilling the overall health of the alternative finance market down into a single number, and will be the single measure by which the world identifies trends and patterns, and assesses the strength of the industry,” said Emily Mackay, CEO, TAB.

“With the holiday season beginning it is not unexpected that June would be a lighter month than May, with raises slowing up across the globe and in the northern hemisphere particularly. This also fits with the wider global economic picture, the long-term health of alternative finance is strong and we look forward to quantifying this in CAMFI.”

The index comprise three sub-indices for equity, rewards and debt. The sub-indices show the variation across the industry’s sector in June. The Debt Sub-Index fell from 101.25 in May to 96.61 in June, the Reward Sub-Index moved from 107.29 to 91.65, and the Equity Sub-Index decreased from 102.18 to 72.87 (-28.7%). The change in the Debt Sub-Index is mainly due to the contraction of the global market on the previous month, but the financing efficiency improved.

The size and the financing efficiency of rewards both declined between May and June. Activity in the equity industry reduced markedly from May to June (the index falling from 102.75 to 69.62), which added to the sharp downside of CAMFI in June.

Each month a report will present the index, and analyse the metric across the three dimensions of scale, efficiency and transparency.

“CAMFI means there is now a whole market measure including sub-indices, a powerful tool in trend tracking and informing the global market about this emerging asset class,” continued Mackay.

“Online finance is a sector that overall is showing considerable growth globally year to year, and CAMFI is a major development in assessing this sector for public bodies, financial analysts, academics, SMEs, corporates and other interested parties.”

Dr. Ben Shenglin, professor & dean, Academy of Internet Finance, Zhejiang University and chairman, Zhejiang Association of Internet Finance, China, added: “Since its inception in 2005, marketplace finance has grown across the world in volume and variety, and the platforms have developed in various forms and shapes globally due to different market and policy environments. Standardisation is a key opportunity for industry players, investors, regulators and academia.”

Every Investor will monitor the Index and report back to you on the findings.

 

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