Robocash highlights profitability and security of P2P investing
Robocash Group has painted an optimistic picture for the outlook for peer-to-peer lending, citing increasing inflows and greater consumer confidence in the industry.
The alternative finance group’s strategic communications director Dmitry Balakhnin said that a survey by Robocash Group this year found that 42 per cent of investors had increased their investments in P2P platforms, compared to just 14 per cent doing the same in stocks, and seven per cent in cryptocurrencies.
Speaking to blogger Tobias Lindner as part of the Finfellas P2P conference this week, Balakhnin said all signs were pointing to growth in the market, particularly after it had proved resilience through the Covid-19 pandemic.
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“It’s likely that in the current environment and global instability, investors choose P2P due to its combination of profitability, security, guarantees and ease of use,” he said.
Asked the extent to which he predicted the market to grow, Balakhnin said it was difficult to offer certainty in terms of figures but was confident that there would be growth over the coming years.
“The P2P market will grow but the main question is how fast it will grow”, he said, adding that the industry’s ability to demonstrate resilience in times of global uncertainty will “show investors that the P2P market is reliable and the P2P market is sustainable and investors could be sure that their investments are safe”.
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Balakhnin also said there was a trend towards greater financial literacy among consumers, as they look for ways to protect and diversify their incomes.
“More people are aspiring to get more knowledge about finance, about funds, and more people are trying to become investors and try to diversify their sources of wage,” he said. “I know it by judging the behaviour of my friends for example, more of them have been trying investment tools for the last three years.”
He highlighted that these are not people well versed in the financial markets, but willing to find information on the internet, do online courses and educate themselves on alternative investments.
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“[Because of] the inflation we have in several parts of Europe due to the current situation, a lot of people realise that investing is now necessary, it’s becoming necessary to invest, and not just on an optional basis, so I think it’s very important for you, for all the other players on the market, and bloggers like me on the market to do more for the financial education at that point” Linder added.
Furthermore, both Balakhnin and Linder agreed that P2P was currently showing greater stability for investors than either the stock or cryptocurrency markets.
Asked whether Russian mobilisation had impacted the Robocash Group workforce, Balakhnin said it had not because the company’s staff were not in the affected demographic.