Financial Inclusion and Crowdfunding- A study of European Countries
Abstract
Financial Inclusion appears to be a test means of achieving the millennium development goals (MDGs) which can exterminate poverty and help populaces to come out of the trap known as “poverty trap”. Crowdfunding, on the other, helps people to find investors or contributors for their business or cause. They are usually the people who do not have access to the formal financial market or do not want to borrow money on high-interest rates. The study was aimed to review the position of European countries in terms of financial inclusion and FinTech from the Findex data 2017 from the World Bank. The crowdfunding data was gathered from the website of the European Crowdfunding Network which helps to propagate the idea of crowdfunding in European countries. The study found that most countries in Europe have a high number of population inclusive in the formal financial system and thus can access to various financial services offered by these institutions. Also, crowdfunding has seen a sharp increase in the amount of money raised and projects funded in the last few years which was possible through the penetration of FinTech services in these countries. The study will be helpful for the companies which want to launch their crowdfunding platforms and also for the people who like to project their business on these platforms.
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