Peer-to-tech - AI & DeFi to fuel the P2P market by 2025

Robo.cash platform analysts tried to identify the correlation between the P2P market and the AI and DeFi markets using the ARDL model. The model was built based on the volume of the P2P lending market across 55 open data platforms and the volume of funding raised for the AI and DeFi markets in Europe. 

The results showed that the current value of the funding volume of these industries influences the current value of the P2P market volume. "Improvements in AI products are leading to their increased use in the P2P market, which enhances the customer experience of the platforms and brings in new investors. The merger of DeFi and P2P lending allows users to bypass traditional barriers, providing transparency and accessibility. At the moment, the number of such platforms is not large, but it is gradually growing." - Robo.cash analysts commented on the results.

The contribution of AI and DeFi development to the Europe P2P market is expected to reach EUR $95.1 M in 2024, growing at a CAGR of EUR $292.1 M in 2025. 

“Overall, the combination of AI & DeFi in the P2P market can promote financial inclusion and foster innovation in the lending space. However, challenges such as regulatory concerns, and technological risks need to be addressed to fully leverage the potential benefits of these technologies”. - the specialists add.

AI finance in Europe reached $13.9 billion in 2023, which is 5.8 times more than in 2017. The decentralized finance market shows an average annual decline of 1.7%, although its volumes are expected to grow in 2024, driven by new regulation of decentralized finance as well as growing interest in cryptocurrencies.