Bondora’s secondary market deal volumes declined by a smaller amount in July than the previous month.
€162,695 (£137,752) was transacted over the European peer-to-peer lending platform’s secondary market in July, down 12.9 per cent month-on-month, less than the 22.9 per cent fall from May to June.
Bondora said that the drop in secondary market activity could be down to more lenders becoming passive investors using the Go and Grow product rather than medium risk investment product Portfolio Manager and high-risk Portfolio Pro.
Meanwhile, the platform’s API product, which gives borrowers with advanced programming skills access to different data points of borrowers in greater detail, was the only investment category that increased.
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“The declining transaction trend we’ve been seeing these past few months is due to the smaller number of investors using Portfolio Manager, Portfolio Pro, and the API,” Bondora said in a blog post on its website.
“As more and more investors opt for the easy, hands-off investing experience that Go & Grow offers, it’s natural for there to be fewer transactions on the secondary market.
“A continued decline in secondary market activity simply proves that more and more investors are opting to grow their money the hands-off way with Go & Grow, rather than hands-on.”
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