Crowdfunding has grown spectacularly over the past few years and is likely to revolutionise financial service provision through innovation in delivery and underwriting. This paper discusses the possible impact of crowdfunding on the microfinance sector in the European Union based on an in-depth analysis of the UK crowdfunding market.
In particular, the paper asks if crowdfunding will displace or disrupt microfinance provision in the EU as we know it today. The analysis drew on interviews with experts, trade bodies and practitioners. We argue that the impact of crowdfunding on microfinance will depend on the type of crowdfunding and the country context.