Mature P2P lending platforms in Europe to recover more than 9% above average, according to Robocash
As the market recovered from the coronavirus crisis, European peer-to-peer platforms that emerged by 2017 managed to rebound “at a growth rate above the market”, according to a report by Robo.cash.
The Croatian P2P lender noted that “the calm upward trend is supported by a 2% increase in monthly funded loans in 2021”.
In order to assess the growth rate of P2P platforms, Robo.cash analysts looked at 43 different platforms present in 16 European countries and “operating primarily in the consumer and commercial segments.”
The volume of funding on platforms in Belgium, Bulgaria, the Czech Republic, France, Ireland and Croatia has “increased by 16% on average over the past year,” the report revealed. What these P2P players have in common is that they “finance on average loans of 3 to 14 million euros per month and have a long experience,” notes the report.
Polish platforms were able to get through the COVID-19 crisis quite easily, with “a maximum drop of 11% in an acute period”.
The Robo.cash team also pointed out that this trend “could be explained by the weak presence in the market”. On the one hand, this “reduces the risks of a sharp slowdown, but … it also limits growth opportunities,” the report adds.
A sharp drop and a strong growth after the “main wave of the Coronavirus” were observed by the Belgian platforms.
Analysts added that it is possible that “such momentum has occurred due to the small volumes and high volatility of these platforms.” They also mentioned that these platforms “react easily to any positive or negative trend in the market, because of which panic could have a strong impact.” But volumes “would return to the previous level as the market recovers,” the report confirmed.
In general, “the influence of the registration locality on the activities of the P2P platform itself is low,” adds the report while noting that “in part, this can be expressed in the characteristics of the population if the platform operates directly in the country and the problems ready for its citizens or businesses.
The report concluded:
“Regardless of where the platform geographically belongs, the market is largely influenced by general trends. However, it is very likely that the P2P platforms of the countries mentioned above will continue to develop at a tremendous rate. Thus, in August 2021, the volumes of Robo.cash increased by 139% compared to August 2020, representing the trend of the Croatian market, which is above 63% of European P2P platforms.