Investments

Global development of the industry

Since the conception of the first P2P platform in the world in 2005, the niche of peer-to-peer lending has increased in size and spread globally. Having originated in the UK, this form of commerce has enjoyed noteworthy interest among single entity investors, larger financial institutions, and governments from all over the world.

P2P is here to stay

The trend picked up in the US too, where the industry has been growing by an average of 51.3% from 2013 to 2018, and is expected to continue its expansion at a similar rate at least for the next five years.

2016 was a particularly memorable year for the whole sector, as the P2P market in continental Europe grew by 101%. Asia has also been riding the wave with more than 4000 P2P platforms being opened from 2007 to 2016 in China alone.

The US has the biggest P2P market share by loan volume, but the UK is 72% larger per capita basis.

P2P is attractive for anyone who is looking to invest safely and reasonably, but one of the most surprising facts about the industry is that more than 55% of P2P investors are over 55 years old. This signifies that this form of alternative financing is largely trusted by mature investors who are educated and financially literate.

Proof for this statement is the fact that the P2P industry earned the trust of bank institutions and pension funds. They have financed 49% of the personal loans and 29% of the business loans in 2016.

Technology leads the future of finance

The internet technologies played a huge role in the boom of P2P. People nowadays prefer a transparent business, easy and understandable mechanisms. Ones that are paperless, wireless, and fast.

The combination of these trends and the great opportunities for investing that P2P provides explains why more people turn their backs on traditional investing and prefer platforms like iuvo.

The interest rates on bank deposits have remained disturbingly low since the financial crisis of 2008 and are no longer considered an efficient investment. Investors are looking to have control over how their money is distributed and seek for more lucrative ROI options, while trying to avoid the bureaucracy and the difficult communication with too many parties.

In regards, P2P has proved to be the best present and future alternative to bank deposits, with interest rates that surpass those of the banks by vast margins. The average annual interest rate for investors at iuvo is 9.2% – a figure that banks are quite far from.

Benefiting from our professional customer service team’s advice and a fully personalized strategy, our clients are able to achieve up to 15% interest rates on their money.

Iuvo guides you to a bright financial future, without the need to ever leave the comfort of your chair, and gives you complete control over how your money is managed.

P2P is here to take over

As we discussed above, the market has already enjoyed a legitimate growth outburst, which has brought P2P investments into the awareness of millions. It may all sound too good to be true, but all numbers point to a steady and continuous growth for the P2P investments sector.

From a $26bn valuation in 2015, the P2P sector is expected to grow to $460bn by 2022, says Research and Markets, while Statista predicts a trillion-dollar valuation by 2050.

Even if we wanted to be sceptical of these long-term projections, we cannot help but agree with them, judging by the fact that the P2P industry has been doubling and tripling its size every year. Investments in Fintech companies have jumped to $57.9 billion in the first half of 2018, which is already more than all annual investments done in 2017, reports KMPG.

P2P investing, just like sliced bread, is one of the best phenomena to come into existence. It is not here only to take part, P2P is here to take over. No matter your age, professional background or capital, iuvo is here to guide you step-by-step into the digital future of finance.

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