UK P2P sector “displaced from leadership pedestal” in Europe
The UK’s peer-to-peer lending sector has been “displaced from the leadership pedestal” in Europe by countries with more liberal regulations, Robo.cash research has said.
Analysts at the European P2P lender assessed 49 platforms across the consumer, business and property segments, from 18 countries in the continent.
It found that the Baltics took the top spot, containing 43 per cent of P2P platforms surveyed by Robo.cash.
Read more: European P2P market demonstrates growth in 2023
In contrast, the UK has an 8.2 per cent stake in the market.
“The UK was the ‘pioneer’ of the European P2P market, which explains its high share,” Robo.cash analysts said. “But the Baltic platforms with their liberal regulation have gradually displaced the UK from the leadership pedestal.”
Robo.cash said that the Baltics took an interest in the P2P market in 2016 and have benefitted from the growing imbalance between the available funds of Western European investors and the large number of Eastern European projects that need funding.
Other countries that have a significant stake in the European P2P market are the Netherlands and Ireland, which also have an 8.2 per cent share.
Read more: Web traffic to European P2P platforms heats up in summer
“Platforms in the Netherlands also faced regulatory hurdles in the early stages of development, but the market is gaining popularity among P2P investors,” Robo.cash added.
The research also found that Latvia, Estonia and Bulgaria have optimal conditions for platforms looking to grow quickly.
“On average, the platforms of these countries need 3.5 years to achieve key indicators and at the same time their monthly values are characterized by low fluctuations,” Robo.cash analysts said.
Meanwhile, French platforms experience the most stable growth, alongside Croatia, although Robo.cash noted that the latter still has a small share of the market.
Read more: P2P investments more profitable than other asset classes