Team Lendermarket

Peer-to-Peer Investing Insights: 5 Key Takeaways from Finfellas Riga 2023

The Finfellas Riga 2023 conference provided a platform for industry leaders and experts to discuss the latest trends and challenges in the world of peer-to-peer investing. From auto-invest trends to regulatory developments, the conference shed light on valuable insights that shape the future of the industry. In this blog post, we’ll explore 5 key takeaways from the conference and discuss the value they could bring to you.

1. Automation: “Self-Driving Money”

Peer-to-peer investors are increasingly gravitating towards “one-click solutions”, as highlighted by the panel’s discussion between industry leaders. The future is very much heading in the direction of “self-driving money” where investors define their investment preferences and then use automation to invest and earn.

Lendermarket recognised this trend early on and developed a powerful Auto Invest feature to enable investors to save time. Many of our investors already use Auto Invest. If you’re looking to capitalise on Auto Invest you can get started here.

2. Loan Originators Challenges: Liquidity & Diversification

Several industry leaders discussed at Finfellas Riga 2023 that Loan Originators (LOs) face unique challenges in the peer-to-peer lending ecosystem from maintaining liquidity to preparing for black swan events. To address these challenges, LOs need to diversify their funding sources and establish long-term financing options to protect against unforeseen events. 

At Lendermarket, we can see this diversification in funding sources at play with Creditstar’s secured bonds. Creditstar is one of the most seasoned issuers in the Baltic bond market, with over 30 successful bond issues.

Lendermarket has 5 main Loan Originators on its platform, plus 7 Creditstar subsidiaries. You can learn more about our Loan Originators on our dedicated page here.

3. Sustainable Returns, Risks and Defaults

Risks and defaults are inherent to any investment and as you would expect, this topic was discussed at length among industry leaders. The precise challenges around managing risks with LOs varied from platform to platform but the consensus was that due diligence, background checks, collateral assessments and transparency were all important factors to consider when onboarding LOs. 

Lendermarket has taken steps to improve LO transparency and build investor knowledge through its widely accessible Risk Rating Assessments. On Lendermarket’s risk rating page, LOs’ risks are rated on a 1-10 scale (10 being the highest) across four categories: Transparency, Legal, Financial and Transactions. The risk rating page is accessible here.

As part of its continuous improvement measures, Lendermarket updated its Risk Disclosure Statement in May 2023 to cover various topics including withdrawal processing timeframes.

4. New Regulations: Driving Peer-to-Peer Mainstream

At Finfellas Riga 2023 new regulations were discussed with a lot of enthusiasm. The general consensus is that regulation plays a pivotal role in shaping the peer-to-peer lending industry. The introduction of new regulations is thought to benefit both investors and platforms, making the industry mature and more mainstream.

The Lendermarket team has been actively working on the licensing topic since 2022 and has made significant steps forward recently. Stay updated with Lendermarket’s news, as we will soon share more information about the licence such as what licence-related changes will be implemented, and of course, what it means for our investors. 

5. Emerging Markets: Untapped Opportunities

Lendermarket had the privilege of attending Anuroop Omkar’s discussion on Fintech opportunities in India, Bangladesh and Sri Lanka. Anuroop’s detailed and interesting insights into India’s National Payment Council, its proactive Central Bank policies as well as India’s sizable investments into FinTech bring to the fore the importance of seizing untapped opportunities in emerging markets.

For some time now Lendermarket has recognised the potential in both established European markets as well as emerging markets further abroad. We’re especially proud of our recent efforts in onboarding new Loan Originators from:

  • Nigeria (QuickCheck), 
  • Peru (CrediFace) and 
  • Spain (Dineo) 

in addition to those from Estonia, Spain, Poland, Finland, Denmark, Czechia and Sweden. However, we’re not done. Lendermarket is actively seeking further opportunities with new Loan Originators.

Conclusion

The insights gathered from Finfellas Riga 2023 shed light on the evolving landscape of peer-to-peer investing. Lendermarket, as a leading peer-to-peer platform, understands the value of these insights and has implemented proactive measures to ensure investor satisfaction and mitigate risks. 

By embracing auto-invest trends, addressing LO challenges, mitigating risks and defaults, adhering to regulations and exploring emerging markets, Lendermarket is paving the way for a robust and inclusive investment ecosystem. Investors can find confidence in partnering with Lendermarket, a platform that continuously learns and adapts to provide optimal value and returns.

Start investing in P2P and earn competitive returns of up to 18% annually

Recent posts

Company News

Exclusive Update From Lendermarket’s CEO: Investors Can Now Invest In Newly Listed Loans

Greetings to our esteemed investors community! We are delighted to bring you significant updates from Lendermarket and share Carles Federico, CEO of Lendermarket message to investors. Fresh Investment Opportunities With Up To 18% Annually We are thrilled to announce that Lendermarket has just released a fresh wave of investment opportunities with up to 18% annual …

Company News

High Five! Investors earned nearly €700000 in bonuses

Lendermarket’s most significant cashback campaign to date, the High Five Campaign, embarked on its journey on the 14th of July last year and reached its triumphant conclusion on the 26th of January 2024. Today, as we joyfully pay out bonuses totalling nearly €700000 we extend a heartfelt high five to our investors! If you’re among …

Stars

Interview with Carles Federico – Lendermarket CEO

Hi Carles, welcome to the Lendermarket Stars series. Having served as the CEO of Lendermarket for the past few months, we are delighted to engage in conversation with you and discover more about your experiences. What are the main projects you are bringing to the table? Hello, thank you for having me on the blog. …

Leave a Reply

Your email address will not be published. Required fields are marked *