P2P platforms used to take about 5 years to reach key metrics, whereas in current conditions, new companies need just 3 years to do so, according to a recent update shared by Robo.cash.
Robocash platform analysts have reportedly looked into three parameters “as the main market indicators: the amount of reinvested funds, the size of the investor base and the interest paid to investors.”
“These parameters, in a sense, indicate the surging popularity of the platform, as well as growing investor loyalty to it.”
The key values for each indicator were “chosen based on market averages.”
The amount of reinvested funds is generally “characterized by an upward trend. On average, there is a monthly increase of 2.6% from 2017 to 2023.” Larger P2P market players that were established before 2018 “reached the key point of €7 M on average” in five years, while “new generation” platforms take an average of 2 years and 8 months to do so.
A similar situation with “the accelerated development of the P2P lending sector can be seen in such an indicator as interest paid to investors.”
Platforms that were launched in the early days of the P2P market “reached 500 thousand euros of interest paid in an average of 2 years and 8 months. New platforms attain the same value in one year.”
Despite the growing opportunities for P2P lending, “the average time to achieve the key milestone of 10k customers on the platform has not changed over time.”
It has been around 3 years for both “young” platforms and those that have already gained market share.
The Robo.cash analysts added:
“This is probably because not that long ago, the P2P lending market was not as competitive as it is today. Therefore, the attracted customers were distributed among the platforms that already existed at that time. Now market concentration is high, so newly attracted investors prefer proven and reliable players, which slows down the rate of customer onboarding by “new” platforms”.
Overall, the P2P market is positively “influenced by the digitalization of the European economy and the continued development of alternative lending.”
The Robo.cash analysts concluded:
“Thanks to these factors, the time for companies to reach a key transition point has decreased. However, given all the peculiarities of the industry, P2P platforms need to continue to gain investor confidence and keep the bar high.”