Croatian peer-to-peer lender Robo.cash says that P2P loans increase competition with traditional banking.
Robo.cash writes in a blog post that European nations with stable and developed economies are leading “in terms of consumer and business lending.” The complete digitalization of the financing process “becomes one of the most important advantages of P2P loans compared to traditional banks,” according to the update from the P2P lending platform.
As noted in the blog post, Germany is currently leading the way in consumer lending among other European nations because of the above average socio-economic indicators. The primary reason for the popularity of these types of loans here is “the conservatism of the banking sector, which makes it more difficult to get a quick loan.” A similar situation is “observed in France, where loan approval can take about a month,” the update from Robocash reveals.
The P2P lender pointed out that another reason for the steady growth in the popularity of the P2P lending “is online access to finance.” In Germany, the Internet penetration “reaches 96%, which allows the majority of the population to use online services and significantly save time.”
The update also mentioned that complete digitalization “allows to maintain a high level of transparency in the loans issuance and the interest calculation.” The report also noted that this is “very important for the client, but it is not always feasible with traditional ways of financing.” In Switzerland, for instance, nearly every platform “claims full disclosure of information about client commissions and full reliability of services,” the report noted.
As stated in the update, P2P lending platforms have “softer requirements for the borrower, so it is easier for young people who do not yet have their own capital and a long credit history to get funds.” Thus, P2P platforms in Switzerland provide student loans, loans for the purchase of furniture, etc, the report confirmed.
As noted in the report, the United Kingdom is the leader in business lending. The priority here is “still the speed of service provision, reduced requirements and carrying out processes online,” the report added. This is important, “since the main clients of P2P lending are small and medium-sized businesses that develop innovative projects and new products,” the update explained. Such processes “require significant funding and implementation in a short time.”
Robocash analysts further noted:
“P2P platforms, as representatives of the fintech industry, normally allow to implement financing in a short time, providing transparency and customer focus. The share of repeated loans of Robocash Group, which is the parent holding of the Robo.cash platform, is 82% in average for 2021, which indicates a steady growth in demand for the product and an increase in its competitiveness with traditional financial systems.”