Baltic republics: P2P financing hotspots

According to Robocash, an investment platform with its headquarters in Croatia, the Baltic republics are a popular destination for peer-to-peer (P2P) financing. Due to the strong demand for “Eastern” initiatives that needed funding from Western European investors, 43 percent of the 49 platforms that were looked at are located in the area.

The platforms are dispersed throughout eighteen different countries and numerous market niches. These consist of real estate, business, and consumer. Robocash analysts pointed out that in 2016, the UK market played a significant role in shaping the expansion of the Baltic region.

According to the study, the UK, Ireland, and the Netherlands accounted for approximately 8.2% of all the platforms examined. The researchers remarked, “The UK’s high share can be attributed to its role as the ‘pioneer’ of the European P2P market.” But the UK has steadily lost its position as the leader to the liberally regulated Baltic platforms.

“Regulatory obstacles were encountered by Dutch platforms during their initial development, but P2P investors are becoming more interested in this market.”

Latvia and Estonia are also at the top in terms of stability and rate of development. “These countries’ platforms require an average of 3.5 years to meet key indicators, and their monthly values exhibit minimal fluctuations during this period.” – the statistics are explained by the specialists. Bulgaria, which has recently seen enhanced market growth rates in numerous directions, comes in behind the top three.

It is noteworthy that when it comes to steady growth rates, France does the best. P2P platforms here, however, require more time to accomplish important benchmarks. Research from the previous year indicates that Croatian businesses are expanding steadily, most likely as a result of the supportive national laws. However, their market share remains quite tiny when considering volume.