Technology provides great new opportunities for SMSFs. It not only opens access to both local and off-shore markets previously only available to institutional investors but with the rise of alternative finance and the opportunities it brings through unsecured and secured peer-to-peer (P2P) lending, investors are earning attractive returns and are no longer at the mercy of the banks.
The Australian P2P market is fast following the US, UK, China and Europe. P2P lending is quickly
becoming accepted and adopted by consumers and businesses alike. The value of loans made
through P2P lending platforms in Australia is forecasted to reach $22 billion in 2020 with $11.4
billion in Small to Medium Enterprises (SME) lending.
The peer-to-peer space is expected to deliver strong returns and offers opportunities to invest in an exciting and growing market. Of course, it is important for investors to do their homework on P2P lenders and their platforms; and receive advice from their financial advisers to ensure they understand the risks associated with these types of investments.