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P2P investors plan to keep on lending despite economy woes ISSUE 83 | JULY 2023
THE MAJORITY of peer-to-peer lenders plan to continue investing in the sector, despite their diminishing confidence in macroeconomic conditions, exclusive research has found. According to a new reader survey by Peer2Peer Finance News, 45.2 per cent of P2P investors feel less confident about the state of the economy than they did six months
ago. Just 12.9 per cent said that they feel more positive about the economy this year, while 41.9 per cent said their outlook is unchanged. Yet despite pessimism around the macroeconomic environment, only one third (32.3 per cent) of P2P lenders said that they did not plan to continue investing in the sector going
Do you plan to continue investing in P2P loans? Not sure 12.50%
No 32.30%
Yes 55.20%
Source: Peer2Peer Finance News
forward, highlighting the resilience and opportunity in UK P2P. More than half (55.2 per cent) said they planned to continue investing in P2P loans, while the remainder – 12.5 per cent – said they were not sure. Peer2Peer Finance News polled thousands of individual investors subscribing to its e-newsletters last month and found that the vast majority fall into the high-net-worth (HNW) and sophisticated investor categories. 51.6 per cent defined themselves as sophisticated, while 45.2 per cent identified as HNW. Just 3.2 per cent categorised themselves as “restricted retail”. Notably, none of the respondents defined themselves as being advised, which could be a reflection of financial advisers’ reticence to engage with the sector, leaving investors to manage their
own P2P portfolio. Reflecting this demographic split, just 12.9 per cent of the investors surveyed said that they held less than £10,000 in P2P loans. Almost a quarter (22.6 per cent) of the investors surveyed said that they had between £10,000 and £50,000 invested in P2P. 38.7 per cent valued their P2P portfolio at between £50,000 and £100,000. 12.9 per cent had between £100,000 and £300,000 invested, and the remaining 12.9 per cent had between £300,000 and £500,000 invested in P2P. The survey results found that investors are well diversified in their P2P portfolios, with a fifth (19.4 per cent) of lenders invested in at least six platforms simultaneously. Just under half (48.4 per cent) were invested in between two and six platforms, while 32.2 per cent were invested >> 4 in one to two.