The Different Ways of Collaboration between a Retail Bank and Crowdfunding

• Date: 01 March 2017
• Published date: 01 March 2017
• Author: Laurence Attuel‐Mendès
• DOI: http://doi.org/10.1002/jsc.2121

RESEARCH ARTICLE

Strategic Change 26: 213–225 (2017)

Published online in Wiley Online Library

(wileyonlinelibrary.com) DOI: 10.1002/jsc.2121

Copyright © 2017 John Wiley & Sons, Ltd.

Strategic Change: Briengs in Entrepreneurial Finance

Strategic Change

DOI: 10.1002/jsc.2121

The Different Ways of Collaboration between a Retail

Bank and Crowdfunding1

Laurence Attuel‐Mendès

Univ. Bourgogne Franche-Comté, Burgundy School of Business-CEREN, France

Banks, aware of the arrival of a new kind of competitor for entrepreneurial venture

funding, begin to collaborate with crowdfunding platforms in different ways.

e tightening of conditions for nancing small and medium‐sized enterprises

(SMEs) by banking organizations — consecutive with Basel III constraints — has

given rise to a new mode of nancing: crowdfunding, also called ‘funding from

the crowd.’ is is dened in France by the crowdfunding guide written by the

ACP (French authority for prudential control) and the AMF (French nancial

markets authority) in May 2013. In essence, it is the funding of a project or risky

business by a group of individuals rather than professionals (Schwienbacher and

Larralde, 2012). is innovation therefore allows funds to be harvested from the

general public via the Internet.

e crowdfunding market is doubling every year, and had reached $16.2billion

in 2014 (Massolution, 2015). In addition, Forbes Magazine (2012) forecasts a

market reaching $1000 billion by 2020. At the French level, take‐up still seems

low (Lestavel, 2013), with €40 million in 2012 and €152 million in 2014 transit-

ing through crowdfunding platforms. e weight of crowdfunding remains

minimal compared to the €689.8 billion in loans granted by banks to businesses

and the €1.007 trillion of loans to individuals in the rst half of 2014 (Banque

of France, 2014). ere is potential for growth in this market if we look at the

gures for life insurance or money disbursed by the French in gambling

(Savel, 2014). e global growth in crowdfunding reached 167% in 2014

(Massolution, 2015). In France, the number of projects launched in 2014 cor-

responds to 30% of the number of all projects funded online since 2008 (Finance

Participative France, 2015). e sector is thus very promising (Havez, 2014), even

though it is still young (Masounave, 2014).

Based on a comparison with the English market (a little more mature),

Poissonnier (2014) estimated at €2 billion the potential of the French enterprises

1 JEL classication codes: G21, G23, O16, O35.

In view of the market, which is

becoming increasingly important,

it is reasonable to consider that

banks must invest in

crowdfunding.

They should create partnerships to

keep an eye on a not yet mature

but very promising market.

While being associated with

platforms, they can identify the

needs and expectations of the

market and complete their

mission of nancing the economy.