UK leads on European P2P business lending
The UK is the leading country in Europe for peer-to-peer business lending, while Germany leads on consumer P2P lending, new data has shown.
According to a new analysis from Croatia-based P2P lender Robocash, European countries with stable and developed economies are more likely to embrace P2P lending due to the digitisation of finance and the speed of fintech service provision compared with traditional banks.
Germany leads in consumer lending due to its above-average socio-economic indicators. Robocash also pointed out that P2P loans may be more popular in Germany due to the conservatism of the banking sector, which makes it more difficult to get a quick loan.
In the UK, business lenders prioritise speed of service provision, reduced requirements and the ability to carry out processes online. This is particularly important to business-owners as they often require significant funding and implementation in a short time.
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Robocash analysts also pointed out that 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. As a result, P2P platforms in Switzerland offer student loans, among other student-focused lending products.
These trends combine to make P2P lending increasingly popular across all segments of the loan market, and allow P2P platforms to compete with traditional banks.
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“P2P platforms, as representatives of the fintech industry, normally allow to implement financing in a short time, providing transparency and customer focus,” said Robocash analysts.
“The share of repeated loans of Robocash Group, which is the parent holding of the Robocash platform, is 82 per cent in average for 2021, which indicates a steady growth in demand for the product and an increase in its competitiveness with traditional financial systems.”
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