What happened last month in the crowdfunding and marketplace lending markets? Which platforms are on the rise, and which ones are falling behind? How has the sector performed over the last year? We look at numbers reported to P2PMarketData in June 2022 and dive deeper into this month’s focus: the P2P lending sector's 2022 mid-term review.
About the monthly report
In the monthly funding report, we publish the funding amounts of online crowdfunding platforms. We track data from 72 participating platforms, operating in 23 markets and 9 different currencies. Please note that:
- We convert all amounts to EUR for comparison reasons, using exchange rates from the last day of the month.
- None of the numbers cited is estimated – the amounts are reported directly to us or pulled from the platforms' publicly available loan books and statistic pages.
- Historical funding volumes reported below may divert slightly from volumes calculated in previous reports due to exchange rate fluctuations and the changes in the pool of platforms we track.
Key highlights: What happened last month in crowdfunding?
After a rebound recorded in May 2022, the market slowed down this month. We recorded a total funding volume of €447m in June 2022 – a decrease of 13% compared to May 2022 (down from €511m).
The total monthly funding volume in June 2022 was lower by €73m compared to the same time in 2021.
Looking at funding across the main investment categories, most funding in June 2022 went to platforms offering consumer investments (€195m), followed by business (€132m), and property investments (€114m). Property lending increased by 1%, while consumer lending and business lending decreased by 8%, and 27%, compared to May 2022.
Platforms’ performance: How did the key players do in June 2022?
Opyn funded the most loans in June 2022, followed by Mintos and PeerBerry. Overall, the five largest platforms accounted for 44% of the total funding volume recorded in our database, while the ten largest platforms funded 60% of the total volume. The largest players were most likely to be direct marketplace lending platforms (7 out of 10) come from Italy (2 out of 10) and offer consumer investments (4 out of 10).
LandlordInvest – a direct marketplace lending platform from the United Kingdom, offering property investments, has been the fastest growing platform in the last year, followed by Income Marketplace and Esketit. The “rising stars” were most likely to be direct marketplace lending platforms (7 out of 10), come from the UK (2 out of 10) and offer property investments (4 out of 10).
Ablrate, Lendwise and Bulkestate have performed the worst compared to the previous year. Overall, the declining or slow-growing platforms were most likely to be direct marketplace lending platforms (8 out of 10), come from the UK (4 out of 10) and offer property investments (4 out of 10).
Finally, we reported several noteworthy milestones reached last month:
- Blend Network has funded more than €50m worth of loans since its inception.
- Opyn has reached over €900m of total funded loans to date. Congrats!
Deep dive: 2022 mid-term review
After a big boom in the fourth quarter of 2021, the P2P lending sector has experienced a slowdown so far this year. Funding volumes were falling every month, except for a brief rebound in May. This is very different from the same period last year when the sector was growing and only went into a slight decline during the summer. Nevertheless, the total funding volume recorded in H1 2022 (approx. €3 billion) was still higher than in H1 2021 (about €2.6 billion). Also, compared to the recent hiccups of the stock market and the crypto crash, P2P lending seems to be on an (even surprisingly) stable side.
The last six months have been far from uneventful, though. Two main events dominated our narrative of the European P2P lending development:
- Russia’s invasion of Ukraine: In the February and March reports, we examined the war’s impact on the sector and the platforms exposed to the Ukrainian and Russian markets in particular. Although they took a hit initially, it seems that investors have not lost trust, while the platforms are transparently communicating the repayment timelines and, most importantly, have not gone bust.
- Mintos’ decline: Our main focus in April was the speedy and sharp decline in Mintos’ funding volumes, which started in October 2021 and continues to this day. In March, Mintos lost its poll position as the largest loan funder in our database on a monthly basis. For the past four months, it has consistently fallen behind Opyn – a relative newcomer in the Italian business lending scene.
How will the sector perform in the second half of 2022 amidst the global uncertainty and fears of recession? We will track the market’s ups and downs with our near-real-time data reporting, so stay tuned!