Ushering in a new era in finance
The viral growth rate of social media has enabled crowdfunding to flourish in the United States and Europe. Platforms such as Kickstarter and Indiegogo which had succeeded in gathering traction for startup businesses in the Western world seemed to run into a halt as they entered the Asia region.
This is due to the legal and regulatory frameworks that are as yet under developed in the region. Several creative platforms and structures have been devised to work around existing grey areas. Another challenge is that running a successful platform requires a huge market with a sizable number of early adopters who are comfortable with supporting such campaigns through online transactions.
Despite being relatively new and in its early stages of development, crowdfunding platforms have the potential to be disruptors to traditional equity providers such as banks, investment firms and other financial institutions. Following the JOBS Act in 2012, equity-based crowdfunding has grown exponentially and will gain traction as well as legality in the Asia region. The big questions are when and how big will it become? Asia is still largely uncharted territory. Governments are only just waking up to the possibilities and challenges posed by the industry. Regulatory framework will be a delicate balancing act. Too much regulation will restrict innovation and scale.
The Asian Banker is now pleased to introduce The Crowdfunding Convention as a part of our annual topical conferences. International industry experts will provide intriguing insight into the world of crowdfunding and what’s in store for the region. This conference also provides the opportunity to learn from peers in the industry from various different countries.
Key working sessions and dialogues