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Published on November 13th, 2020 | by Jenny


Will a COVID vaccine improve peer to peer lending market?

The pandemic has made for a turbulent market in the world of peer to peer lending with many retail investors looking to take their money out of the industry and into ‘safer’ investment vehicles. Despite the pull on capital, many have kept skin in the game when it comes to peer-to-peer given the record low-interest rates currently on offer from the main retail banks. 

Whilst the outlook for 2020 and 2021 has been pretty gloomy, the news this month of a potential COVID vaccine from Pfizer means getting back to relative normality could be on the cards sooner than we at first thought. 

The increase in optimism was reflected in the financial markets this week who have recorded some of the best returns since the pandemic first hit. But will the vaccine news be as good for the peer to peer lending industry?


Will the COVID vaccine bring new growth? 

Whilst the fight is certainly not over yet, many in the industry are looking to develop a mood of quiet optimism. Companies are now seeing a light at the end of the tunnel and as uncertainty reduces investment and spending could well go up. This is good news for the peer to peer lending market which thrives on the movement of capital around through investments and easy-access lending. 

That being said, if a vaccine does prove to be not as effective as first thought then markets could return to record lows again. The vaccine from Pfizer which proves to be more than 90% effective means many are showing renewed interest and optimism in the financial markets, but it is yet to be seen if this newfound confidence will be reflected in peer to peer lending. 

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