Apple picker Investing in loans has been on the rise globally in recent years. During last year's outbreak of the coronavirus pandemic, however, similar to other economic sectors, these investments also experienced a significant drop in interest. Since then, however, the European market has grown by tens of percent. In April, investors on the Czech online platform Bondster they even invested 89,4 million crowns, which is at a similar level as before the coronavirus.
According to data from the portals P2Pmarketdata.com and TodoCrowdlending.com, the growth of the European P2P (peer-to-peer) investment market continues. After the sudden shock caused by the pandemic, when investment volumes fell by 2020% in April 80, the market is growing steadily. According to the latest data from March 2021 already investors on European P2P platforms invested two and a half times higher volumes of money, than how much they invested in the aforementioned April 2020.
The Czech investment platform is also recording a similar development Bondster, which was established in 2017. During the first two years, it gained the trust of over 6 investors, who invested a total of 392 million crowns in it. A year ago, it was already used by more than 9 investors, with 1,1 billion invested, and at the turn of April and May 2021, the platform exceeded the total number 12 thousand investors with an invested amount of more than 1,6 billion crowns.
The amount of investment is at the same level as before the pandemic
Due to the pandemic on the platform Bondster investors reduced pro-invested volumes by 85% – the amount fell from 86,5 million crowns (February 2020) and 76,3 million (March 2020) to 13 million (April 2020). Since then, however, the activity of investors has continuously increased, and a year later, in April 2021, investors have already invested more than 89,4 million crowns, thus safely reaching the same level as before the pandemic.
"The corona crisis represents the biggest economic crisis since the Second World War and it meant the first and at the same time a real stress test for the P2P market. Several investment platforms did not manage the crisis, especially the first wave of the pandemic, which was a bolt from the blue for everyone. Therefore, several of them stopped working,” states Pavel Klema, CEO of Bondster, according to which the market has thus been purified and only platforms built on stable foundations remain.
Bondster number two in Europe
How the Czech Bondster managed to reach the pre-pandemic level is explained by Pavel Klema as follows: "Despite some difficulties we experienced at the beginning of the pandemic, we handled the crisis well, which investors appreciate increasing investment volumes and increasing numbers of new investors. In recent months, we have seen particularly high registrations by foreign investors. But even Czech investors on the domestic market see that when comparing the ratio of costs and returns of various types of investments, investments in secured loans are among the best forms of capital appreciation."
His words confirm the long-term results of Bondster v international comparison of European P2P platforms, which is carried out by the portal TodoCrowdlending.com. In a comparison of the profitability of more than a hundred monitored platforms in March 2021, the Czech platform achieved s yield of 14,9% for euro investments total second place.
Key profitability
Profitability from investing is, in addition to security, the main criterion for investors to decide whether to invest on a given platform. Average annual evaluation on the Bondster compared to last year increased from 7,2% to the current 7,8% for investments in Czech crowns. In Euros the average annual appreciation on Bondster has risen since March 2020 from 12,5% to the current 14,9%.
- An overview of Bondster investment opportunities can be found here.
About Bondster
Bondster is a Czech FinTech company and an investment platform of the same name that mediates secured investments in loans for people and companies. It was established in 2017 and functions as an investment marketplace that connects investors from the general public with proven lenders. It thus offers an alternative to traditional investing. In order to reduce the risk, the loans are secured by e.g. real estate, movable property or a buyback guarantee. Through the Bondster market, investors achieve annual returns of 8-15%. The company belongs to the Czech investment group CEP Invest.
Find out more about Bondster here
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