Croatian and Irish P2P platforms offer highest risk premium

In 2023, the rate of return in the European P2P market has risen to 10.4% with leaders from Croatia and Ireland, where it promises to be at 15% p.a.

Robocash analysts have evaluated the level of profitability of 77 P2P platforms from 19 European countries. The study examined both the proposed nominal rates and the real risk premiums, which may vary depending on market conditions, inflation expectations and other factors.

According to experts’ assessment, platforms from Croatia show the highest nominal rate of return at the end of 2023. The weighted average rate here with an expected maturity at the end of 2024 reaches 15.1% p.a. The top three also include Ireland (14.1%) and the Czech Republic (13.4%).

“Given the capital mobility in Europe, an investor is more likely to choose a higher rate of return because there is no point in investing at 7%, for example in Denmark or Sweden, when for the same level of risk you can find an offer with a return twice as high.” – the analysts comment on the study.

The lowest nominal yields are seen in platforms from Finland, which offer to invest at around 4.6% p.a.

In terms of assessing the real risk premium, the attractive countries for P2P investments for 2024 are still Croatia and Ireland. They offer the highest return of up to 11.9%. Estonia, Czech Republic, Lithuania, Cyprus, France and Latvia with an average market risk premium of 7.9% are also in the top.

Overall, real yields in the European P2P market are now 7.1% above the average rate on deposits and government bonds in Europe.