Robo.cash sees increasing demand for long-term loans

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Robo.cash is seeing increasing investor demand for long term loans offered by its Singapore lender.

In August, investors in Europe’s peer-to-peer lending platform funded € 1.5 million (£ 1.4 million) of these loans, the highest ever.

Continue reading: Robocash plans to go public in Australia in December

That is twice as much as in June (700,000 million euros) and more than 1.2 million euros in July.

Robocash said the Singaporean lender is the only one on its platform to provide loans with a maturity of eight to twelve months.

Continue reading: Robocash plans expansion in Asia

Research on the platform has also shown that investors are looking for long-term assets like stocks and exchange traded funds (ETFs).

In April, 40 percent of investors said stocks and ETFs make up the largest part of their portfolios, up from 33 percent at the beginning of the year.

Continue reading: P2P lenders hope the market will rebound by the end of 2020

Robo.cash cited an analysis from MarketWatch, claiming that the pandemic and the uncertainties that it brought about appeared to have led investors to rethink and think ahead their strategies and opt for longer-term investment products.

“With stocks, it is undeniable that they remain one of the most profitable investment vehicles,” says the analysis.

“However, a sharp rise in the stock markets after the current recession, a so-called V-shaped recovery, is hardly to be expected.

“Some prominent experts say stocks are more likely to follow the U-shaped rebound, making them less attractive.

“The longer the pandemic lasts, the more pessimistic these predictions become. As a result, other experts believe that the recovery scenario could well be the L-shape, making this type of investment riskier than usual.

“This could be one reason investors are looking for other alternatives, including P2P lending.

“Such investments bring high returns, are not so volatile and give an overview of when and how much profit one will make.”

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