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A quarter of UK investors plan on using alternative finance in 2021

A new survey of 975 UK-based investors has revealed the sentiment of investors towards alternative finance products. It found: 

  • 25% of investors plan on using an alternative finance product in 2021
  • 33% have engaged with an alternative finance provider in the past 12 months
  • 61% feel they lack sufficient knowledge of alternative finance products to consider using them
  • 25% of investors rely on brokers when sourcing financial products 

One in four investors plan on using an alternative finance product in 2021, new research by Market Financial Solutions (MFS) has revealed.

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. It found that 25% plan on using an alternative finance product in the coming 12 months. This includes bridging finance and peer-to-peer loans. 

When asked about their previous use of alternative finance, one third (33%) of investors said they had engaged with an alternative finance provider in 2020. However, a significant majority admitted that they lack sufficient knowledge of alternative finance products to consider using them – this was the case for 61% of investors.  

MFS’ research also revealed that 25% of investors rely on brokers when sourcing the right financial products. This number rises to 43% for millennials – those aged between 18 and 35.  

“Demand for alternative finance seems to be 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. 

Paresh Raja, CEO of MFS

About Market Financial Solutions

Market Financial Solutions (MFS) is a London-based bridging lending company offering fast lending solutions for borrowers and investors. It is one of the UK’s fastest growing, independent bridging finance providers. 

About the research

The market research was carried out between 15th and 20th January 2021 among 2,008 UK adults via an online survey by independent market research agency Opinium. Opinium is a member of the Market Research Society (MRS) Company Partner Service, whose code of conduct and quality commitment it strictly adheres to. Its MRS membership means that it adheres to strict guidelines regarding all phases of research, including research design and data collection; communicating with respondents; conducting fieldwork; analysis and reporting; data storage. 
 
The data sample of 2,008 UK adults is fully nationally representative. This means the sample is weighted to ONS criteria so that the gender, age, social grade, region and city of the respondents corresponds to the UK population as a whole. Within this sample, 975 respondents had investment portfolios worth in excess of £10,000 – this includes all assets from bonds and currencies to commodities and stocks and shares but excludes any property that is used as their primary residency. 

Written by Tenner Smith

Tenner Smith - I have experience in financial intelligence and automated intelligence. In industry I have worked on artificial intelligence and machine learning. Tenner Smith is a reporter at DF media.

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