Leading alternative finance marketplace Mintos reviews trends that shaped the industry in 2019
Mintos, the leading marketplace for investing in loans, has more than doubled its investor base in 2019, going from 100,000 in January 2019 to over 220,000 at year’s end. This success has brought recognition through awards and a unique insight into one of the fastest-growing segments in the alternative finance market.
The company’s stellar year was acknowledged at the 2019 AltFi Awards, claiming the Alternative Finance Platform of the Year as well as the People’s Choice award – for the fourth year in a row. Mintos managed to outcompete unicorns like Funding Circle, Zopa, and Revolut, among others.
Reflecting on this successful year of growth and milestones reached, Mintos CEO Martins Sulte shared his views on some of the trends and innovations he noted in 2019.
The public’s trust in alternative investing has continued to grow in 2019
64.9 percent of European P2P investors now have full confidence in P2P lending, as similar marketplaces have introduced security features like two-factor authentication to protect people from hacking and cybercrime. This healthy investor confidence is driving the shift towards alternative financial services and the asset classes they cover, with investing in loans gradually becoming as common as investing in stocks, bonds or real estate.
Alternative assets gaining popularity
Not that long ago, alternative investment was thought of as real estate investment when compared to investing in stocks and bonds. With the rise of fintech, however, new opportunities to invest in previously untapped assets became accessible to individual investors. According to statistics, 88% of traditional financial institutions think that fintech companies will take at least a part of their business in the next five years, as investors look for new and innovative ways to diversify their portfolios.
One of these new asset classes is investing in loans, which just recently was a relatively unknown way of securing and growing one’s funds, as opposed to traditional financial instruments such as equities, bonds or cash equivalents.
Diversity in the types of people looking to invest is a key talking point
As the alternative finance market continued to grow, so did the investor diversity. “Since the launch of Mintos back in 2015, we have noticed a positive trend of women investors joining Mintos – now around 15% of Mintos investors are women,” Sulte says, whilst acknowledging that men still form the biggest demographic. Mintos’ easy-to-navigate system and low starting point for investment (as little as EUR 10) are opening up the market to younger people too, as well as those that don’t traditionally invest in loans.
Increase in technology use when making smaller investments
Technology application within investment industry has made the industry more accessible and transparent and the growth in mobile application apps is increasing rapidly. According to Statista, an average of 12 percent of people ages 18 to 64 have reported using an online investing app in the previous 12 months.
There is an increase in geographical diversity among people choosing to invest
The growing accessibility, as well as attractive returns have made alternative financing into a busy investors market that is not defined by geography. Investing in loans is a great example to illustrate this, as people from all over the globe use platforms such as Mintos. “Our investors come from 85 different countries,” Sulte continues. “The geographical diversity of Mintos investors has been growing steadily since we launched. Back in 2015, we started with investors from just a few countries. Investing in loans is now becoming a common choice among individual investors internationally.”
Looking ahead, another strong year for digital innovation and fintech industry adoption is predicted, which undoubtedly means more options for those who seek alternative opportunities to invest.