Alternative Finance Maturing
Investors are seeing value elsewhere
We are in the midst of a psychological shift where the next generation is looking at finance differently. Besides new ways of financing without the middleman look at the rise of bitcoin and crypto currencies. Investors are starting to see value elsewhere.
The new normal
Decentralization and P2P opportunities, considered as disruptive or alternative, are turning into the new normal. Also as the next generation investors tend to more engaged, this makes the alternative finance investment market a perfect fit.
Finance Maturity Model
Looking at the alternative finance maturity model from CrowdfundingHub, the market is maturing.
Currently at the top of the competition stage, we’re heading into the consolidation phase, where the most transparent players with the best offerings matching risk and reward will remain.
Financial authorities falling behind
This week the AFM (Dutch Financial Authority) posted an update that investors in alternative finance should have more ‘time’ to engage to make a proper decision, as well as making sure investors don’t put a ‘too big %’ of income in this investment class and ‘spreading their investments’ to minimize risk.
We consider this as being pretty obvious and still feel the AFM is repeating itself instead of guiding the way.
That’s why its good to see data gatherers in the industry coming up with index information to guide.
TAB has launched the global Crowdfunding and Marketplace Finance Index (CAMFI), marking the start of detailed quantitative tracking of this emerging asset class.
Yieldport adding to transparency
Let’s share thoughts and knowledge to let this investment class emerge.
Yieldport is in continuous talks with industry players to be on top of this.