Almost half of peer-to-peer investors take a platform’s business model into consideration before committing funds, research claims.
Analysis by Croatia-based P2P lender Robo.cash found that 47.2 per cent of investors check how a firm operates and 42.8 per cent said they are more confident in those that work with their own loan originators rather than third parties.
Meanwhile, 52.8 per cent of those surveyed have no preference regarding a platform’s business model but they do take note of financial capability, performance and transparency of the loan originators.
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“Both models are developing fast in the modern P2P market,” Sergey Sedov, founder of the Robocash Group, said.
“In most cases, if a platform works with its own or fellow loan originators, it is a part of a financial group backed up by a substantial capital.
“At the same time, the parent group has direct access to the indicators of all loan originators presented on the platform and is able to fully control their performance.”
He said being part of a larger financial group makes a platform more stable and financially viable.
There have been concerns in continental Europe about the business models of P2P lending platforms, particularly due to a lack of harmonised regulation.
Platforms such as Envestio and Kuetzal have closed amid accusations of fraud.