A survey carried out by the European P2P lending platform Robo.cash shows that most investors view the pandemic as a source of valuable lessons. 2 out of 3 respondents think that the crisis has not hit the P2P segment too hard, but it has revealed the importance of being more careful choosing a platform to invest on.
66% of investors say they have learnt that the reliability and transparency of P2P lending platforms are vital. By reliability investors mean the platform’s history, the quality of its communication with investors and the public and, surprisingly, interest rates. Some investors mention that high interest rates may raise suspicion if there is no decent explanation on how the platform can afford to pay them. 19% of investors say the crisis has taught them to diversify more, but only by means of trusted platforms.
6% of respondents have claimed that it is “a moment of opportunity” for them. While some investors panic and sell their assets, others can buy them off at better conditions. The importance of “red flags” has been mentioned by 4% of respondents. When a platform has problems with withdrawals or loan originators, it should be a sign that one had better be careful with it.
Generally speaking, investors agree that the crisis has been a challenge for the market. While part of them mention that some platforms had shown to be unreliable and unprepared, others, to the contrary, feel satisfied with the segment’s performance and say they had expected harsher effects on it.
“By and large, we can say that P2P investors have not dramatically changed their mind about the segment. 95% of respondents say they will continue investing in P2P lending, and 68% of them are going to expand their investments. In terms of supply, the pandemic has undoubtedly set new quality standards for the segment. What is more, popular European P2P lending platforms have been showing different performance during the crisis, which has affected investors’ experience as well. These factors may lead to a considerable change in the market’s shares in the future, provided that the social and economic situation in Europe keeps stabilizing”, – the company’s analysts assume.
Robo.cash is a Croatia-based fully automated P2P platform with a buyback guarantee on investments operating within the European Union and Switzerland. Launched in February 2017, the platform belongs to the financial holding Robocash Group that unites non-bank consumer lending companies in seven markets in Europe and Asia. As a part of the group, Robo.cash works according to a “peer-to-portfolio” model providing an opportunity to invest in consumer and commercial loans issued by the affiliated companies. As of December 31, 2019, it has attracted over €9 mln of investments, which has allowed to finance €160 mln worth of loans.
