Association: 486 million euro invested using Latvian peer-to-peer lending platforms in 2017
In 2017, 486 million euro were invested through Latvian peer-to-peer lending platforms, according to industry data from the Alternative Financial Services Association of Latvia. This is an increase of 288 million euro, or 2.45 times more than in the previous year, during which 198 million euro were invested through platforms founded in Latvia.
“Peer-to-peer lending platforms foster an effective financial system. Through these platforms, collected capital is redirected to small- and medium-sized businesses and private individuals in need. These transactions have cross-border characteristics. Through Latvia’s platforms, one can invest in loans issued in various European, Asian and even African countries. Investors who invest in platforms registered in Latvia are from more than 50 different countries across the globe,” explains Gints Āboltiņš, director of the Alternative Financial Services Association of Latvia.
Currently, the most active investors in Latvia’s peer-to-peer lending platforms are residents of Germany, Great Britain, and Estonia.
In the fourth quarter of last year, 154,9 million euro in loans were financed through Latvian peer-to-peer lending platforms. This is 31 million euro, or 25%, more than in the third quarter of 2017.
In estimating performance data for 2018, industry leaders are optimistic, while also remaining cautious about anticipated industry regulations.
“The continued development of the industry will be determined by the Co-financing Services Law, which will soon be considered in the government and parliament. On one hand, the legislation will define the legal framework for operating platforms in Latvia; on the other, it will give investors greater confidence regarding platform operations,” emphasizes director of the Alternative Financial Services Association of Latvia, Gints Āboltiņš, who welcomes the legislation proposed by the Ministry of Finance. The legislation is intended to cover all types of peer-to-peer loan models, including the creation of a regulatory framework for the placement and administration of credit claims on co-financing platforms.
Learn more about peer-to-peer lending platform performance indicators on the Association’s homepage: http://lafpa.lv/en/statistics/