New ways for new days: the rise of the alternative finance

The advent of alternative finance, a term used to denote financial services that are not offered by traditional financial institutions, has been a subject of considerable interest in recent years. This chapter aims to systematically review existing literature contributions about alternative finance instruments and channels, employing the PRISMA 2020 statement. The systematic literature review (SLR) method is employed to evaluate the adoption, functionality, and impact of these instruments on the financial ecosystem. The authors also pay attention to the role of these instruments in addressing funding gaps for underserved market segments, including start-ups and small and medium-sized enterprises (SMEs). Furthermore, the implications for financial inclusion and innovation are examined, given the increasing adoption of alternative finance instruments by retail and business customers. The chapter also examines the challenges associated with alternative finance, including regulatory compliance, risk management, and transparency. The findings provide an overview of the benefits and limitations of these instruments, offering insights into their potential to transform financial services