Key P2P market segments unleash the competitiveness

Robocash platform analysts have assessed the concentration of different P2P segments through the Herfindahl-Hirschman index. The index value from 0 to 1 indicates low market concentration and high competition, and the value close to 1 shows high market concentration and tendency to monopoly.

At the end of July 2023, the index of the market represented by the combination of segments was 0.27, showing a decline from 2017. "Whereas in the early days the big players took a large share of the market, we now see the focus shifting towards increased competition." - Robocash analysts comment. 

Decline in concentration is also observed in the consumer and real estate segments. The business sector, on the other hand, tends to be monopolistic. Since 2017, the concentration index here has increased from 0.33 to 0.47.

Estonia shows the highest competitive environment among the countries. The average concentration here for the research period is 0.22. "This can be explained by the maturity of the Estonian market. Also, according to our latest research, the country is among the top three leaders in terms of platform stability and speed of reaching key milestones." - Robocash analysts note. 

In July 2023, the platform studied the concentration index of the European P2P market as a whole. The results showed that the industry has an average competitive intensity.