Millennials lead the P2P investment push in Europe. The younger generation is looking for alternative investment avenues.
Millennials remain at the forefront in the P2P investment movement. According to new research by P2P platform Robo.cash, 78% of peer-to-peer investors in Europe made their first investment before the age of 35.
Further, investors start early, with 6.3 percent making their first P2P investment before the age of 18.
Of the P2P investors surveyed, only 22 percent said they made their first investment while over the age of 35. 28.1 percent said they made their first investment between the ages of 24 and 29, while a further 22.5 percent were between 30 – 35 when they invested.
An additional 22 percent were between 18 and 23 during their first foray into peer-to-peer lending.
With a P2P market valued at over $15 billion in 2018, millennials seem poised to benefit further.
Why is P2P Investment Popular Among Millennials & Gen Z?
From digital currencies to online banking, young investors have embraced digital ways to save and invest. Digital investing is no different. According to analysts, millennials and Gen Z favor P2P lending because of the following reasons:
- Higher returns compared to other asset classes
- Low minimum deposits and minimum investment requirements
- High growth potential
- Ease of use on a variety of platforms
- Low maintenance and potential for passive income
- Availability of auto-invest features on most platforms
While millennials get a bad rap for poor money management skills, all is not lost.
Of the P2P investors interviewed, 46.4 percent mentioned retirement savings as one of their top goals. A further 12.9 percent plan to use the additional income to support their children.
All indications point to a financially ready generation, taking the bull by the horns and using new ways to secure their future.
P2P Investing vs Other Asset Classes
Tech-savvy millennials continue to reshape their financial destinies using online and mobile investment platforms. They challenge the stereotypes associated with the generation. A significant proportion of the cohort has dived head-first into emerging investments.
Of the affluent millennials with over 25,000 Pounds in investable assets, most have moved towards digital and independent investing.
The Robo.cash report shows that 34.4 percent had their first investment in stocks and shares, with P2P investment coming a close second with 26.4 percent indicating it was their first asset class.
ETFs and bonds come close after with 12.2 percent and 11.5 percent of surveyed investors claiming it was their first investment asset classes.
Cryptocurrencies also made a showing with 4.4 percent of surveyed investors indicating it was their first investment. That number is significant given the risk usually associated with crypto in the wider market.
We’ll be keeping an eye as Millennials lead the P2P investment push in Europe and beyond.