Paresh Raja

Some 25% UK investors plan on using alternative finance in 2021

One in four investors are considering using alternative finance this year, including bridging and P2P loans, according to the latest research from Market Financial Solutions.

The bridging lender commissioned an independent, nationally representative survey of 975 UK investors, all of whom have investment portfolios valued at £10,000 and above.

When asked about their previous use of alternative finance, 33% had engaged with an alternative finance provider over the past 12 months.

However, the majority of participants (61%) felt they lacked sufficient knowledge of alternative finance products to consider using them.

MFS’s research also found that 25% of investors relied on brokers when sourcing the right financial products — this number rises to 43% for those aged between 18 and 35.

Paresh Raja, CEO at MFS (pictured above), believes that demand for alternative finance is rising as a consequence of the pandemic. 

“With mainstream providers limiting their products and services to reduce their risk exposure, investors are being encouraged to consider alternative options. 

“However, there still exists a significant knowledge gap when it comes to the general awareness of alternative finance products and how they can be used as part of a broader financial strategy. 

“To address this knowledge gap, investors need to do their research and also engage with brokers who have a comprehensive understanding of the mainstream and alternative finance markets.”

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