P2P or Peer to Peer lending loans in Spain. Evolution

Image result for spain banks In Spain, banks have always had the possibility of offering very diverse financing services such as the commercialization of assets, unlike in the USA where certain practices could not be carried out by banking institutions. That is why in our country the banking system has always enjoyed a noteworthy role in the financing market, also due to the absence of a competitive market where there are other sources of financing for private companies or for individuals.

Currently, loans in Spain controlled by banks are around 80% of the credit, which means a great dependence on this type of financing.

As we can see in the chart below, in Spain non-bank financing constitutes 22% of the total where we would find P2P (peer to peer lending) loans or loans between people, while in countries such as the United States or the United Kingdom this type of financing accounts for more than half of the total, around 65% – 70%.


The growth of P2P Lending (peer to peer lending)

The growth of P2P Lending (peer to peer lending)

However, in our country, alternative financing is growing exponentially. The economic crisis in which our country has been immersed has meant a closure of the banking tap, a fact that has forced companies and individuals to seek new ways of financing, thus giving importance to P2P or P2P Lending loans (peer to peer lending ) and that has generated therefore the appearance of new platforms and non-banking institutions in charge of managing the P2P Lending in Spain, that is, loans in Spain, as is the case of MytripleA.


Peer to Peer Lending: Spain vs. Europe

According to a report prepared by the University of Cambridge, Spain, regarding alternative financing online, where P2P loans are located, it is in a 6th place with 63 million euros managed by this route, it is behind the leader of this market, such as the United Kingdom, which has moved 2,337 million euros, in addition to other countries such as Sweden, Germany or France.

In the following graph, you can see the number of platforms that exist in each of the European countries.

 As you can see the United Kingdom, referring to the number of peers to peer lending platforms, stands out above the others with 65. Below are several countries where Spain is with 34. France with 33 and Germany and the Netherlands with 31.


P2P loans in Spain compared to other alternative sources of financing

Of all the existing alternative financing systems in our country, such as the Crowdfunding of donations, Crowdfunding of retribution or Invoice trading, the P2P Lending method or also known as P2P loans or peer to peer lending represents the second alternative financing system with more volume of money manages with 13.7 million euros against the Crowdfunding of remuneration that is the most used moving 35.1 million euros in 2014.

In the following chart, you can see the situation of the alternative financial market in Spain, as well as the evolution of the five main alternative financing systems between 2012 and 2014.

Source: Prepared by the authors based on the Report of the University of Cambridge (volume in millions of €)

As we can see the P2P loans (peer to peer lending) in Spain have gone from having a volume of less than one million euros in 2012, reaching 2.7 million in 2013, reaching a volume of 13.7 million euros in 2015 Peer to peer lending in Spain has had a remarkable growth of 363% in 3 years, being the financing system that has grown the most compared to the other methods whose growth is close to 150%.

This shows us that the business fabric is discovering this new system of alternative financing as a method of business growth and development, opting for P2P Lending instead of bank financing that is increasingly limited.


Trends in the P2P loan market in Spain

  • Market growth P2P lending or peer to peer lending : The exponential growth of the P2P loan market will continue to occur throughout Europe and Spain, in this case, will not be left behind, if it is true that this new financing system has arrived later in our country and it is now that it is beginning to be noticed, but given the data, this growth will not cease in the future.
  • Institutional investments investing through platforms P2P lending: In the case of MytripleA, it collaborates with the platform GLI Finance Ltd, a leading investment fund in London that also participates in the loans published by the platform with the same conditions as any small investor.
  • Investment agreements between Peer to Peer lending platforms and Banks: Far from acting as competitors, there are many agreements that are being signed where P2P lending platforms and banking institutions collaborate in order to find a benefit for both and for the financial market in general. Some examples of these agreements are the case of ING Direct with Kabbage or Citibank with Lending Club.


P2P loans or peer to peer lending in MytripleA

P2P loans or peer to peer lending in MytripleA

In little more than a year of existence in MytripleA we are proud to summarize in the following points some milestones that we have achieved:

  • More than 130 loans
  • More than 4 million euros financed by SMEs and the self-employed
  • More than 1000 registered investors
  • Revelation Company Award for Economic News
  • Most Innovative Company Award by FOES
  • Most Innovative Product Award for Economic Castilla y León