Association: co-financing service draft has given positive signal for international arena
Latvia has commenced work on the Co-financing Service Law. So far it has given a positive signal on the international arena, admits head of Latvian Alternative Financial Services Association Gints Āboltiņš. «The Co-financing Services Law will not only improve the creation of new and innovative fintech companies in Latvia. It could potentially attract lending platforms from other countries. What is most important is that the legislative draft will apply to all market participants and create regulations for loan requirements and administration for co-financing platforms. Companies working in the industry hope work on the law will conclude in 2018,» said Āboltiņš.
He also notes that Latvia’s mutual lending platform continued reinforcing positions on the European market – both the size of financed loans and investor base increased last year. Data compiled by Latvian Alternative Financial Services Association shows that loans worth approximately EUR 330 million were financed through platforms in seven months of 2017.
The association also mentions that based on international studies in Europe, approximately 80 mutual loan platforms active in 19 countries are indicative. The total size of investments performed using platforms in Europe exceeds EUR 16.9 billion. In addition, Latvia has managed to get fourth place total investment-wise, which puts it in competition with market leaders – United Kingdom, Germany and France.