European P2P investors tilt older

The average European peer-to-peer investor is now 37 years old, as more middle-aged consumers seek out higher-risk investing opportunities.

A new analysis from Croatia-based P2P platform Robo.cash has found that since 2017, the average P2P investor profile has changed significantly.

Seven years ago the average investor was 29 years old, with fintech lending hailed as a new opportunity for younger investors. However, today the average investor is almost a decade older, as younger investors mature alongside the sector and older investors become interested in the space.

“While previously P2P lending was more interesting for the young population, today alternative investors are becoming more and more similar to an average European in terms of age,” said Robo.cash investors.

“In general, this is a positive moment for alternative investment platforms, testifying to the age-democratic nature of such projects.”

Robo.cash found that the most profitable investment projects are typically chosen by older P2P investors, aged 70 or older.

“This can be explained by the fact that, as Europeans age, they increasingly adhere to the classic investment theory – the higher the risk, the higher the return,” said the analysts.

“On the other hand, younger people, more inclined to live ‘here and now’, are choosing investments with a quick payback but lower returns.”

Robo.cash also noted a direct correlation between the investment period and the investor’s balance sheet. The longer people invest, the higher their balance and return.

“According to our previous assessments, competition in the continental European P2P lending market is decreasing, as is its concentration,” added the Robo.cash analysts.

“This allows us to argue that the portrait of a typical Robo.cash investor, as well as its lifecycle, differs little from other similar platforms.

“We can assume that the results obtained are largely characteristic of the consumer segment of the European P2P market as a whole.”

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