P2P-platforms recommended to relatives have investors’ credit

If investors recommend a P2P-lending platform to their relatives and friends then it means that they are really satisfied with work of the platform, noted the ROBO.CASH team.

The P2P-lending market goes through a rapid growth at the moment. One of the latest researches conducted by experts of Robo.cash has shown it to be determined by the readiness of experienced investors to invest more and the increasing number of new investors. From this point of view, the tendency among investors to recommend P2P-platforms they like most of all to relatives and friends is logical enough.

To study the reasons, Robo.cash conducted a survey among those who invest in P2P platforms. It showed that 27.6 % of the respondents had a chance to recommend one or another P2P-lending platform to their relatives and friends.

As for the internal statistics of the automated P2P-platform Robo.cash which number of investors exceeded 800 by the middle of August 2017, no less than 2 % of experienced investors have precisely known family ties. They are represented not only by couples but close relatives too. There are examples when parents have invited their adult children and vice versa.

To be recommended means to have one’s credit. Investments are always risky no matter of its kind, that is why it is quite obvious that people stay cautious about P2P-lending platforms. The borrower’s or platform’s default is claimed to be one of the greatest threats for those who invest in the P2P market because in such a case the investor risks to lose the entire investments. Among mentioned are also probable regulatory changes and a failure of buyback guarantees if provided. Taking all the mentioned points into account the best way for an investor to reduce risks is not only to diversify investments but to check properly existing offers too as much depends on P2P platforms as well. It would be also a definitely good decision not to trust money to any fly-by-night operators.

In order to become stable and trustworthy, first of all, any lending platform should provide a highly efficient evaluation of borrowers which significantly affects the low default rate. At the same time, it is very important for a platform to be transparent as there are examples in the market when some companies turned out to be a pyramid scheme or tried to deceive investors by concealing fraud cases. Thorough studying of the platform work, its terms and conditions will definitely help an investor to make the right choice.

According to the comments received, referral bonuses and programs or any other advantages it could bring are not the only grounds for a platform to be recommended by investors. First of all, one should be satisfied with a platform work and feel confident about the investments safety. “If the platform is going to crush then you probably have no relatives and friends more. So with no credit to a platform one will never attract an investor, especially close ones”, — commented one of the respondents of the conducted survey.


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