Alternative lending observes a continuously increasing number of Millennials and Generation Z, according to the Latvian P2P platform Robo.cash. This growth is supported by the interest of young investors in a “simple and comfortable source of additional income” and the positive experience gained at the existing P2P platforms.
“The growing demand for P2P lending and the increased share of the younger generation prove the potential for alternative lending in Europe,” commented Robo.cash Founder and CEO Sergey Sedov. “It is evident that the interest of investors, particularly young, in a simple and comfortable source of additional income and positive experience gained at the existing P2P platforms will have a significant impact on the future development of the industry.”
[clickToTweet tweet=”[email protected]: New #P2Plending Milestone & Millennial Research #fintech ” quote=”@Robocash1: New #P2Plending Milestone & Millennial Research #fintech “]
Against stagnating interest rates on deposits and cautious lending policies of banks, altfin is seemingly attracting greater attention from investors and borrowers of the younger generation who are accustomed to digital tech and consider P2P platforms as a profitable and comfortable financial tool.
Robo.cash’s research shows that Millennials are steadily taking over the leading position from the older generation of investors. Six months ago, the average age of investors of the platform was 38 years, and the age groups were distributed as follows: Silent generation (73-90) — 0.8%; Baby boomers (54-72) — 9.5%; Generation X (38-53) — 38.6%; Millennials (22-37) — 50.3% and Generation Z (18-21) — 0.8%. Today, the typical investor has grown younger to 37 years old due to the increased share of Millennials — 53.9% and Generation Z — 1.8%.
At the same time, tactics used by investors can be classified by several basic types having the same goal to maximize profit. Inexperienced investors usually allocate spare money less than 1,000 Euro, and experienced investors planning their budget willingly invest larger amounts. This is confirmed by the average size of investments in different age groups: 18-21 years — 670€, 22-37 years — 1.939€, 38-53 years — 3.488€, over 54 years — 4.907€.
Robo.cash investors currently have the option to choose loans from Spain, Russia and Kazakhstan; the P2P lender also tweeted that it had hit surpassed a €4M investment milestone:
Robocash has attracted 4 million euros of investments! We thank our investors for choosing the platform! We continue improving the service and making investments comfortable for you. pic.twitter.com/6sTz1cLEZU
— Robo.cash (@Robocash1) May 24, 2018
Sedov recently shared Robo.cash’s plans for growth in an interview with ExploreP2P:
“The question here is not about the number of customers, but their quality. We are determined to attract €10 million by the end of 2018. However, success of Robo.cash is in many respects up to the efficiency of the whole financial group as the platform attracts non-banking financing to the affiliated credit companies which provide loans. Apart from already mentioned integration with the Russian lender, we are going to provide an opportunity to fund PDL-loans issued by the Philippine lender Robocash.ph. which started its work by the end of 2017. Furthermore, today Robo.cash is open to investors from the European Union and Switzerland and there are plans to attract customers from some other countries in Europe.”