European P2P sector could get €400m boost from AI this year
Summary of Development
The continued uptake of artificial intelligence (AI) among European peer-to-peer lending platforms could bring an additional €400m (£354m) into the market, Robo.cash analysis has predicted.
The influence of AI and machine learning (ML) on the European P2P market has grown five-fold since 2017, Robo.cash said. The European P2P firm’s research found that 61 platforms across the continent already use AI and ML in their product development. The largest group of these is based in the UK, accounting for 16 platforms, followed by France with five.
Consumer lending platforms were most likely to use AI, equating to a 49 percent share, followed by business (23 percent).
“Such a distribution is quite logical because the consumer sector is aimed at a mass audience and, therefore, quite large resources are required for a comprehensive automated assessment of their customers,” Robo.cash analysts said. “In addition, the consumer sector is a highly competitive and complex market where each customer has their own individual needs and preferences.”
In the property sector, it said AI & ML technologies are less developed.
“AI & ML can also be useful here, as this is a very large market, which is actually the most sensitive to the economic situation in the country,” Robo.cash added. “This makes its risk assessment a broader task.”
Robo.cash predicts that the increased uptake of AI and ML into the business processes of continental European P2P platforms could boost the sector’s market volume by 37 percent this year compared to 2022.
The platform’s analysts say that P2P lending platforms are increasingly aware of the benefits of using technologies and integrating them into their business.
“In addition, in the coming years, P2P lending platforms will be actively developing in other regions of the world, such as, for example, Asia and Latin America,” Robo.cash added. “The use of AI & ML technologies will be one of the key factors that will help them ensure stable growth and reach a new level of expansion.”
In 2022, the number of AI & ML technology companies in Europe reached 15,000, Robo.cash said, raising $47.3bn (£38bn) to date.
Atuksha Poonwassie, co-founder and managing director of Simple Crowdfunding, has previously said “Potentially more platforms will look at AI”, commenting that “customer journeys will improve, and platforms are constantly evolving”.
Links:https://p2pfinancenews.co.uk/2023/04/21/european-p2p-sector-could-get-e400m-boost-from-ai-this-year/