Peer-to-peer investors have learned valuable lessons from the pandemic, research claims.
A survey by European P2P lending platform Robo.cash shows that two out of three respondents think that the crisis has not hit the P2P segment too hard, but it has revealed the importance of being more careful when choosing a platform.
Two thirds of investors said they have learned that the reliability and transparency of P2P lending platforms are vital.
By reliability, investors mean the platform’s history, the quality of its communication with investors and the public and interest rates, Robo.cash said.
Investors said high interest rates may raise suspicion if there is no decent explanation on how the platform can afford to pay them.
A fifth said they felt it is now more important to diversify and others said they will be more prepared to spot investment opportunities.
Read more: Grupeer investors facing withdrawal delays
“P2P investors have not dramatically changed their mind about the segment,” Robo.cash said.
“The pandemic has undoubtedly set new quality standards.
“Popular European P2P lending platforms have been showing different performance during the crisis, which has affected investors’ experience as well.
“These factors may lead to a considerable change in the market’s share in the future, provided that the social and economic situation in Europe keeps stabilising.”
Some investors have been unhappy with European P2P lenders such as as Grupeer and Monethera who have stopped making interest payments.
The platforms have blamed the state of emergency among European Union member states and how difficult it is to recover debts.
Legal action is being planned against Grupeer by investors who want to recover their funds.