Experienced European P2P Investors Choose Liquidity on Secondary Markets, Robo.Cash Reveals

Croatian peer-to-peer lender Robo.cash notes that 62% of European P2P investors “support the opportunity” of purchasing loans via the secondary market. The increasing demand for this option is mainly driven by experienced clients with adequate funding, the Robo.cash team writes in a blog post.

During the last year, the Robo.cash platform has witnessed a rise in the number of investors favoring or preferring the secondary market. Since mid-2020, approximately 100 clients per quarter went for this “liquidity-boosting” alternative when setting up an investment portfolio, Robo.cash reveals.

But the growth of the platform investor-base has now outstripped the secondary market extension, and “the share of the latter decreases over time,” Robo.cash noted. For instance, of those who registered in Q2 2021, only 56% “invest in the secondary market, compared to 74% who registered in Q2 2019.”

Robo.cash analysts noted that they are able to assume that new investors “trust the secondary market less and do not invest in it initially due to the fact that they are not yet familiar with the platform or due to little experience.”

Depending on the investment volume, the “amount of funds entering the secondary market also changes,” the update from Robo.cash noted while adding that just 59% of clients with funds of less than 1,000 euros actually invest in the secondary market.

The report from Robo.cash further revealed that the number of the investors “with a balance of 15,000 euros reaches 70%.” The average investment of those who choose the secondary market “is 25% higher than those who do not participate in it at all,” the report noted while adding that mostly “sophisticated players enter the secondary market.”

Robo.cash analysts further noted:

“Large investors are keen to maximize their income on the platform and are not afraid to take advantage of its benefits. This includes actively using the secondary market, as this is where you can buy a loan with an attractive interest rate, as well as keeping funds on the platform and reinvesting them.”

They added that at the same time, the small percentage of investors who “prefer to withdraw funds from the platform immediately after closing the loan is decreasing.” This could “indicate a growing trust in both the P2P market in general and the Robo.cash platform directly,” the P2P lender concluded.

In a separate update, Robo.cash revealed that in August, their investors “funded loans for a record amount of 13.4 M euro.” There were 736 new investors joining the platform and the amount earned by investors “totaled to 243 thousand euro.”

As noted by Robo.cash:

“We presented 2021 first half-year results on our loan originators. The beginning of the year turned out to be very active and the group’s net profit increased by 33% compared to H1 of 2020.”

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