Investments totalling EUR 1.28 billion made through Latvian peer-to-peer lending platforms in 2018
Last year, investments totalling EUR 1.28 billion were made through Latvian peer-to-peer lending platforms and this is by 792 million more than even the year before, according to industry data compiled by the Alternative Financial Services Association of Latvia.
Loans amounting to EUR 905 million were financed in Q4 of the preceding year and it is by 30 per cent more in comparison with Q3 of 2018. The peer-to-peer lending platform Mintos formed in Latvia showed the best results, having a stable and leading position also in Europe. Investments made through this platform in total amounted to EUR 1.04 billion in 2018.
A global trend shows that peer-to-peer lending platforms reached their mature stage in 2018. Large companies had the possibility to expand this past year, whereas the growth of small platforms either stood still or the platforms ceased to exist. There are companies that in the previous year took further steps towards development, quoting their shares on the stock exchange. Funding Circle in London is among the mentioned companies.
Thus far, financial technology companies focused on developing one product, but at the moment companies are thinking about extending their product range. This trend is characteristic also to peer-to-peer lending platforms and it is forecast that this trend will become more pronounced in 2019.
“Peer-to-peer lending platforms developed in Latvia have reinforced their position on the European market. This is the second consecutive year showing growth of their operation volumes and this consequently promotes the efficiency of the financial system and demonstrates the ability of Latvia to compete at international level,” Gints Āboltiņš, the Head of the Alternative Financial Services Association of Latvia, reveals.
Peer-to-peer lending platform performance indicators in Latvia are available here.