In comparison with different European markets the Swiss p2p lendng market has been late in creating. Regulatory hurdles and an higher restrict on rates of interest for client loans of 10% (12% for card loans) have slowed improvement of the market. However it appears that evidently actual property loans lastly delivered a break by way of in 2019-2021.
The brand new examine ‘Market Lending Report Switzerland 2022‘ by Simon Amrein, Nadine Berchtold and Andreas Dietrich of Lucerne College delivers an in depth evaluation of the market.
In line with the report there are at present 14 platforms energetic available in the market:
Supply: Market Lending Report Switzerland 2022, p. 7
A number of banks and insurances have taken stakes in platforms:
- Funders is operated by the Luzerner Kantonalbank and licensed to different cantonal banks
- The Lendico platform was acquired from PostFinance by Lend (Switzerlend AG) in 2019. PostFinance has acquired a stake of Lend in a reciprocal transfer.
- Neocredit was launched in 2019 by French platform credit score.fr and the insurance coverage firm Vaudoise. Since 2022, the Vaudoise Group has been the only shareholder of neocredit.ch
- In December 2021 the Basellandschaftliche Kantonalbank purchased a stake in swisspeers AG as a strategic investor.
In line with the report the p2p lending section reached a document quantity of 607 million CHF new loans in 2021 with a development charge of 35.5% from 2020 to 2021. The most important share 418 million CHF went to actual property loans. The key driver had been loans to firms in the actual property enterprise. Many of those loans are issued as short-term credit to be later redeemed by banks.
Supply: Market Lending Report Switzerland 2022, p. 8
The examine finds: ‘The COVID-19 disaster in 2020 has been one of many largest disaster in Switzerland over the past decade. Regardless of elevated default charges , the returns each within the client and the SME section remained constructive and recovered in 2021. The present state of affairs stays difficult for the economic system and monetary markets, given the excessive inflation and rising rates of interest’.
Supply: Market Lending Report Switzerland 2022, p. 11
The examine has a number of conclusions, a few of that are:
- Rebound impact after COVID disaster: ‘Earlier than the .. disaster returns … had been excessive and danger – measured by default charges – low. The disaster was an necessary take a look at, offering buyers with a sensible danger and return profile of the asset class‘
- Altering rate of interest atmosphere is a take a look at for on-line enterprise fashions
- Sustainability is more and more changing into a subject within the debt market
- Extra transparency, extra relevance: ‘… Elevated relevance would require extra transparency available in the market … for institutional and personal buyers‘
