Various strategic logics drive P2P platform development
Where are the boundaries?
About 70% of European P2P platforms in the segments of consumer and business loans last year confined to issuing loans only in the country of presence. This was especially clear in the Scandinavian countries, Germany, the Netherlands, Switzerland, as well as in Eastern Europe with its emerging P2P industry. "As a rule, such projects are quite conservative, reliable and with well-established business mechanisms." - comment on the statistics analysts of the Robo.cash platform.
There is a trend of working with non-European developing countries, but so far it is poorly evolved. Among the popular destinations are Southeast Asia, South and Central America. It is likely that in the near future the trend will become much more pronounced both at the level of financial holdings and marketplaces.
Single niche vs. multi-niche approach
Most of the European platforms leading in terms of sustainability are mono-niche players. At the same time, almost a third of all companies operate in several segments. The advantages of the multi-niche approach are obvious: it implies the widest possible coverage of investors, balancing risks, maximizing profits. However, it is no less obvious that, as a rule, only experienced and large players can afford to "embrace the immensity". Therefore, it is not surprising that new directions are opening as they grow.
Running different business models
Another important point that determines the strategic course of the platforms is their business model. The advantages of P2P marketplaces are the possibility of almost unlimited geographical and niche expansion. However, it requires special attention to ensure the safety of investments. Platforms that work by themselves do not have such problems, but it is often more difficult for them to fully compete with marketplaces. The "golden mean" in this sense can be platforms operating as part of international business groups. The offer diversification is provided by issuing loans in several countries, and the specifics of the business guarantee the reliability of investments.