European P2P becoming reserve of seasoned investors

The number of Europeans willing to invest on peer-to-peer platforms is decreasing amid growing engagement from loyal and experienced participants in the market, according to Robocash.

Robocash analysts examined the activity of new investors in the European P2P market, and how it has evolved over the past five years.

The study referred to data on 63 platforms, provided by Spanish P2P blog Todocrowdlending.

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The research found that historically, the number of new P2P investors had varied in three main phases.

In the first stage, the number of newcomers rose in proportion to investment volumes, ensuring market growth to a greater extent. During covid, their number collapsed along with volumes, and then gradually recovered

“Thus, it can be assumed that in the period 2019-2020, new investors largely determined the shape of the European P2P market,” Robocash analysts said.

As the financial market recovered, the P2P industry continued to grow, primarily at the expense of seasoned investors. In the second half of 2021, this process also caused another influx of newcomers.

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In the spring of 2022, market volumes fell amid escalating political events, as did the number of new investors.

Robocash concluded that the market’s gradual rebound was mainly driven by a loyal audience that caught the momentum of higher returns on P2P investments amid lower inflation in Europe.

Conversely, “new investors, particularly young ones, currently do not find significant incentives for widespread engagement in a new area,” analysts remarked.

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