Demand of P2P investors for long-term loans doubles since June

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 attractiveness. 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.”

 

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Robocash d.o.o (“Robocash”) is a company registered in the Republic of Croatia under registration No. 081224371, with legal address at Petračiceva 4, Zagreb, Croatia, 10110.

Robocash is not regulated under any financial services license. When you invest on Robocash, you buy claim rights for loan receivables and investments in loan receivables are subject to risks. We advise diversifying investments and carefully evaluating the risks.