Millennials Top the Peer to Peer Lending Investment League  


Millennials – loosely defined as those who came of age around the turn of the century – are widely seen as the principal early adopters of finance and bank apps, but according to data published by by Robo.cash, they are among Europe’s most enthusiastic investors via Peer to Peer lending sites.  

Until relatively recently, the average age of investors was 38. Within the last six months that average has come down to 37, but more importantly, Millennials represent the dominant demographic on the platform.  

The company’s figures show that those aged 22-37 now account for 53.9% of the platform’s investors, while the up and coming Generation Z (18-21) represent 1.8% of the total.

In contrast, the so-called silent generation – now largely in retirement – account for just 0.5%  of investors while Generation X and Baby Boomers represent 36% and 7.8% respectively.

Healthy Appetite

The figures – if reflected across P2P platforms elsewhere –  seem to suggest a healthy appetite for P2P investment among the younger generations at a time when bank rates are low.

“The growing demand for P2P lending and the increased share of the younger generation prove the potential for alternative lending in Europe. It is evident that the interest of investors, particularly young, in a simple and comfortable source of additional income and positive experience gained at the existing P2P platforms will have a significant impact on the future development of the industry,” — commented Sergey Sedov, Founder and CEO of Robo.cash.

However, the younger investors are not necessarily investing large sums. Robo.cash says younger investors tends to set small amounts aside – usually 1,000 euro or less – while their older counterparts are prepared to commit sums of 3,000 or more. The average investment of those who are 54 or older is 4,307 euro.  Older users also tend to plan their investment budgets more carefully.

The figures suggest a long-term future for Peer to Peer lending at a time when the sums committed are rising.

 

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