The European P2P lending platform Robo.cash has found that the demand of investors for long-term loans offered by its Singaporean loan originator is rising. In August, the platform’s users funded €1.5 mln of these loans, which is twice as much as in June. This might mark a new trend among P2P investors.
Starting with €0.7 mln in June, in July the worth of loans from Singapore funded through the platform went up to €1.2 mln, and then peaked in August making €1.5 mln. It has been the highest number so far.
As the Singaporean loan originator is the only one on Robo.cash, which places loans lasting from 6 to 12 months, it can be seen as a sign of a growing demand for longer-term products among P2P investors. This tendency is also confirmed by an increasing interest of investors in other long-term assets, such as shares and ETFs. Thus, in a survey conducted by Robo.cash at the beginning of 2020, 33% of respondents claimed stocks and ETFs made the largest part of their portfolio. In April, though, the share of investors with the same distribution of assets grew to 40%.
Analysts of the company comment: “The pandemic and the related uncertainties seem to have made investors reconsider their strategies and think ahead, opting for longer-term investment products. As for the stocks, it is undeniable that they remain one of the most profitable investment tools. However, it is hardly possible to count on a sharp rise in stock markets after the current recession (a so-called V-shaped recovery). Some prominent experts say that the stocks are rather likely to follow the U-shaped recovery, which decreases their attractivity. The longer the pandemic, the more pessimistic these predictions become. Thus, other experts think that the recovery scenario may well have the L-shape, which makes this type of investment riskier than usual. This may be a reason why investors look at other alternatives, including P2P lending. Such investments give high returns, are not so volatile and give a view of exactly when and how much profit one is going to receive.”
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 June 30, 2020, it has attracted over €9 mln of investments, which has allowed to finance €163 mln worth of loans.
