European P2P investors take longer-term view
European peer-to-peer investors are shifting their focus towards longer-term investments, new research has found.
Croatia-based P2P lending platform Robo.cash has reported that its investors are choosing to back fewer short-term loans, whereas loans with longer term times are becoming more popular.
According to the platform’s own analysis, loans of up to 30 days fell to an all-time low of 3.4 per cent in December 2023. Meanwhile, loans with a term of up to one year represented 37.9 per cent of the platform’s portfolio during the same month.
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“It is worth noting that the volume of invested funds still slightly distorts the situation, as longer-term investments, in order to maximize profitability, usually involve a larger amount as well,” the analysts noted.
Robo.cash classes loans of up to three months as short term, while medium-term loans refer to those with a term time of 6-12 months, and long-term loans come with a term time of one year or more.
The platform has found that over time, more and more investors are opting for long-term loans.
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Across 2023, the total share of short-term investments by user amounted to 32 per cent of Robo.cash’s portfolio, while medium- and long-term loans have increased to 43 per cent and 25 per cent, respectively.
“Of course, the development of the platform’s portfolio is also influenced by the availability of certain types of loans in it,” the analysts added.
“However, the result of conscious preferences of investors is also evident here.
“With experience, they are willing to invest in longer maturities as this enables them to earn higher returns and grow their investment portfolios. This also shows an increase in their confidence in the market, which continues its strong consistent growth.”
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