The end of the year boosts investment activity among European peer-to-peer lending platforms, as investors seek to diversify their portfolios ahead of the festive period.
Robo.cash analysed 43 European P2P platforms of consumer and business segments and found that in the last three months of the year there tends to be an increase in P2P investors’ activity, with October seeing the highest amount invested.
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Analysts at the European P2P lending platform said that one possible reason for the investors’ activation during the end of the year period is the summing up of personal finance accomplishments and thereby creating a reserve for the new year.
The research found for the past five years October has shown significant month-on-month growth compared to September, with an average growth of 16 per cent.
Robo.cash also found that concerns about market behaviours in October and financial plans for the new year have prompted investors to diversify their investments.
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“This increase in the demand might be attributed to the negative psychological reputation of October as a “disastrous” month in traditional investing,” the analysts said.
“P2P loans look like an excellent diversification option in this regard.
“The bursts occur at different times and can be explained by both market conditions and marketing events held by the platforms.
“A relatively common point is only the activation of investors at the end and beginning of each month, especially at the end of December as the final month of the year.”