Millennial investors have funded three quarters of Mintos’ loans, in a sign that younger investors are set to dominate alternative investing in loans.
New data from the European alternative finance platform showed that more than 75 per cent of the platform’s 356,222 lenders were born between 1981 and 1996.
Further analysis found that the majority of Mintos’ retail millennial investors are from Germany, Spain, Czech Republic, and Estonia. Most either work in the IT industry or in engineering, and the average investment per millennial investor is approximately €1,200 (£1,086).
These statistics prove that millennials do have an appetite for investments, despite their reputation as a ‘lost generation’ in financial circles.
“The very fact that we as a company exist is proof in and of itself that millennial investors are not a lost cause,” said Martins Sulte, chief executive and co-founder of Mintos.
“Quite the contrary, they are not only very active as investors, but also as community members, following and discussing the latest news and trends, sharing tips and strategies with others.
“While millennials might seem to be on the sidelines in terms of investing in traditional assets, they have become the driving force in the alternative investments category.”
Mintos’ recent Crowdcube campaign was also fuelled by millennial investment. Within 10 days, the crowdfunding drive attracted more than 7,000 investors and raised more than €7.2m, and Sulte said that that majority of those investors were also millennials.
“Our absolute majority of clients are millennials and we continue to see that the new investors choosing alternative investments and joining Mintos weekly are in the same age group, showing that the pandemic has not deformed the trend of interest,” said Mr Sulte.
“Back in spring, during the first pandemic wave, we learned that our millennial investors are more bold in comparison with the rest of investors on our marketplace by making more investments and using the opportunity of global market fluctuations.”