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It’s no secret that the P2P industry is booming. The UK is a market leader, where business is growing at a rate incomparable to the rest of the world. Bulgaria is also a focus on the map of Europe (ahead of Romania, Slovakia and Portugal, and one position after Norway), and France, Germany and the Netherlands remain the main players. A big surprise in the top ten of the ranking in 2017 was the debutant Georgia, which proves the rapid pace of development and changes in the sector at the Old Continent. For example, growth in interest in this industry in Europe (excluding the UK) in 2017 is 63% compared to 2016. And according to recent estimates, by 2025 the P2P market worldwide will be worth the staggering $ 1 trillion, compared to the lowly $ 64 billion in 2015 *
The reasons for the interest in P2P lending are logical and related to the consumption of financial services typical of the new generation. In Europe, more than half of P2P users are in the 22-37 age group. One of the “justifications” for this contingent to turn to P2P is the lack of appropriate conditions for them in conventional institutions.
Although small in size, P2P lenders provide better service primarily relying on current technology and fully automated service processes. Compared to traditional banking institutions, P2P business also enjoys simplified regulations in general. The success of the so-called disruptors in financial services also causes traditional banks to think about changing the way they offer their services. Many major banks around the world understand the need to switch to P2P, and there are also banks that already offer that functionality in their service package.
The presence of great competition among traditional players and new participants in the market creates conditions for financial inclusion of more people and more territories around the world. Global financial inclusion is a leading goal of all P2P platforms and it helps a lot in building a healthy competition in the market. At the same time, software providers are becoming more resourceful in terms of safety and speed, which works great in terms of gaining customer trust. The consumer experience is elevated to a cult, seeking greater flexibility and freedom in terms of service as well.
Regulators in different countries, however, seem increasingly inclined to make legislative changes that facilitate the existence and development of the sector. In the subsequent years, authorities will increasingly focus on the P2P industry in order to achieve proper regulation of processes. And if the new rules are written to reflect the real state of the market and new technologies, the regulation will work more effectively to protect both creditors and borrowers.
And what’s new with iuvo? Entering to new European markets, joining of new originators and new types of credits, adding new platform functionalities, and improving the overall customer experience will be carried out in the coming months. And if you have been hesitant so far about getting into the right place, we hope that we have succeeded in convincing you of the promising future of the P2P industry.
You can read more about the benefits and current success of iuvo as a P2P investment platform here.
*The forecast is referred to in a Statista study.
