Peer-to-peer investors aged between 28 and 37 are more likely to choose loans which last for a period of 12 months or longer, research claims.
According to a new study from Croatia-based P2P platform Robo.cash, 41.9 per cent of its long-term investors are aged between 28 and 37, while 29.5 per cent are aged 38 to 47, indicating that younger investors prefer to take a long-term horizon in P2P lending.
By contrast, just 1.3 per cent of over-68s, and 11.3 per cent of 18-27-year-olds chose to invest in P2P loans lasting a year or longer. Sergey Sedov, chief executive of Robocash Group suggested that this could be due to the fact that the majority of pensioners and students value instant liquidity rather than portfolio diversification.
“Initially, our platform was offering its users investments in short-term consumer loans only,” said Sedov.
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“Today, 23 per cent of our active users have invested in long-term loans at least one time. Interestingly, 82 per cent of them have been investing with us for more than a year.
“This means that over time, these investors have seen the value of long-term opportunities and recognised the need to diversify the portfolio.
“Apparently, diversification is not the only benefit for them. With the growing demand for short-term loans, such investments have become a good alternative to keep money working nonstop for a long time.”