The continental European peer-to-peer lending market is forecast to grow by 20 per cent in 2024, thanks to more geographies and products.
Analysis from Croatia-based P2P platform Robo.cash predicted that the market will reach €579.2m (£496.8m) by December 2024.
“On the back of the current market growth and in the absence of serious socio-economic factors, the European P2P market promises to continue its steady expansion,” Robo.cash said.
The platform noted that European P2P investors will have increased opportunities for geographical diversification next year.
“Many multi-country P2P projects, in response to limited investor demand and growing competition, are trying to attract clients with interesting products from destinations that are still exotic for the European market,” Robo.cash said. “These include Sri Lanka, Colombia, South Africa, Mexico, Jordan, Tanzania and Nigeria.”
The variety of investment products on offer is also predicted to expand next year. Property-backed loans and access to corporate bonds may be added to already widely available notes, Robo.cash said.
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The platform’s analysts also predicted that the market will polarise further next year, between the established players and new entrants.
“Leaders will continue to strengthen their positions, and newcomers will have to try hard to catch up with them,” the analysts said. “The highly specialized P2P segments (environmental, marine, agriculture and farming) that are becoming increasingly popular in Europe may gain influence, but again, given the absence of any macroeconomic shocks.”
The European P2P lending sector is going through a period of transition, due to new regulations aimed at harmonising P2P lending and crowdfunding across the EU.
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The European Crowdfunding Service Provider Regulation (ECSPR) was introduced in November 2021 and all nationally licensed platforms in the EU had to attain an ECSPR licence by 10 November 2023.