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.
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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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