Author Archives: MPI

Update on Eurocent loans on Mintos peer-to-peer lending marketplace

The company continues servicing the loans and passing on borrower payments to investors on the Mintos marketplace. As a result, since June 8, 2017, the outstanding investment portfolio in Eurocent loans on the Mintos marketplace has decreased in total by 43%.

After suspending automatic buyback of the delinquent loans on the Mintos marketplace in July, Eurocent made a partial buyback of the loans according to company’s financial ability in the amount of EUR 71 000. Similarly, Eurocent made gradual repayments towards the holders of the outstanding corporate bonds. As of October 6, the company had repaid a total of 35% of the overdue bonds.

However, following the appointment of a Temporary Judicial Supervisor by the court on September 29, the company had to suspend the partial fulfilment of the buyback towards investors on Mintos. This was due to the limitations imposed by the supervisor to ensure fair treatment of all creditors of Eurocent.

The main functions of the Temporary Judicial Supervisor are to:

–  verify the financial standing of the company;

–  help the court to make a decision on the reasonableness of the commencement of the debt restructuring proceedings;

–  supervise all dispositions made by the company to prevent it from conducting activities that might be perceived as detrimental to creditors.

As confirmed by the management of Eurocent, the appointment of the Temporary Judicial Supervisor will not affect the regular settlements made by the company towards the investors on the Mintos marketplace. All payments received from the borrowers of loans that have been assigned to investors on the Mintos marketplace will still be transferred on a regular basis.

Meanwhile, Eurocent continues negotiations with several potential investors. If these negotiations result in an agreement, the company’s situation would be resolved out of court and would allow Eurocent to repay its obligation towards the investors in the shortest period of time.

Short recap of what has happened

June 2017: Eurocent could not repay its corporate bonds in the amount of PLN 1.8 million (EUR 425 000), and the placement of new Eurocent loans on the Mintos marketplace was suspended. Read more >

July 2017: Still not being able to repay the full amount of the outstanding bonds, Eurocent submitted an application to the court to restructure the company’s debts. Read more >

September 2017: After evaluating the application, the court appointed a Temporary Judicial Supervisor to Eurocent. All actions of the company that exceed the scope of ordinary management must now be approved by the supervisor.

Loans issued by Mozipo in Romania now available on Mintos marketplace

Well known for being one of Lithuania’s biggest online consumer lenders, Mozipo Group is expanding their presence on the Mintos marketplace by offering to invest in personal loans issued in Romania.

Mozipo Group has been operating for more than a decade and has established a strong reputation for being reliable, transparent and a responsible non-bank financial institution. Currently, Mozipo Group works in Denmark, Lithuania and Romania, and plans to expand to five additional markets in the near future.

Since Mozipo Group joined the Mintos marketplace in March 2017 with loans issued in Lithuania, more than EUR 5.3 million of those have been funded through Mintos.

“We find Mintos marketplace a convenient and flexible tool to grow the portfolio. We are happy to work with the team of professionals who are aware of the needs of fast-growing fintech companies. So, now that we are confident about funding, we can concentrate on the core business and enter new markets,” says Mozipo Group CFO Aušrius Banaitis.

Romanian-issued Mozipo Group loans on the Mintos marketplace will range from EUR 22 to 3300, with a repayment period of up to five years. The average net annual return to investors is expected to range from 9 to 14%. Initially, the loan originator will list loans in euro; loans denominated in Romanian lei (RON) will be added to the Mintos marketplace soon.

Mozipo Romania will offer a buyback guarantee for loans that are delinquent for more than 60 days. The obligations of Mozipo Romania will be guaranteed by Mozipo Group. The company prides itself on the use of efficient technologies and has a unique risk scoring system, reducing the number of non-performing loans issued. The share of non-performing loans of Mozipo Romania historically is below 20%.

To retain its skin in the game, Mozipo Romania will keep at least 10% of each loan on the Mintos marketplace on its balance sheet.

Since its inception, Mozipo Group has served more than 230 000 customers. The typical client of Mozipo is a 36-45-year-old city resident with an average monthly income. The loans are primarily used to cover daily and unexpected expenses. The company has issued 660 000 loans worth over EUR 135 million.

In 2016, Mozipo Group earned EUR 3.9 million in revenue, with a net profit of EUR 526 000. Their loan portfolio was EUR 9.3 million.

Mozipo Group started operations in Romania in April 2015. Loans worth more than EUR 1 million have been issued to date.

To obtain exposure to Mozipo Romania loans, investors will be able to invest in loans issued by Mintos Finance, a Mintos group company, to Mozipo Romania where repayments depend on the borrower’s payments. Each loan issued by Mintos Finance to Mozipo Romania will be pegged to a respective loan issued by Mozipo Romania to the final borrower. A detailed description of the structure is available in the Mintos Finance loan agreement and assignment agreement.

Reap the benefits of Mozipo Group’s forward-thinking business structure by investing in its loans. If you use Auto Invest on the Mintos marketplace and want to invest in Mozipo loans issued in Romania, make sure to adjust your Auto Invest settings accordingly.

5 pitfalls for your prosperity: here’s how to avoid them

No one knows what tomorrow can bring. So it is possible that some of the decisions you make today have positive outcomes and others do not. We have all made mistakes with our money at some point and have fallen into different traps.
If we go back to that moment, we realize that there were indications that things might not work well, but we ignored them.
So the next time you make a decision about your money, think about whether you’re about to make a mistake and fall into one of the big traps of personal finances.

Here are 5 big pitfalls that you have to avoid in order to have a more prosperous future:

1. You get influenced by someone who does not know what is all about:

Often people do not make the wrong decisions just “on their own”. They are influenced by someone close: husband / wife, parent, friend or colleague. It may happen to ask for an opinion and get a total misconception. Or get the advice without asking for one. It’s one of the big traps where you can fall even if you do not realize it.

Just because someone close to you is making a certain investment does not necessarily mean it’s a good decision. Or, more than that, it does not mean that you should do exactly the same thing. Sure, it does not even mean that the advice of those around you is totally wrong only because they are not finance specialists. But it is important to think about who is the one who tells you what to do with your money and what confidence you can have in his opinion.

2. You are not informing yourself

If you do not take into consideration what can happen if things DO NOT go the way you think, then you are about to fall into one of the big pitfalls.

People would have much to gain by improving their financial education. A study conducted in the US in 2014 shows that 41% of those surveyed believe the correct score for their knowledge of personal finances is the maximum mark of 7. Moreover, 69% of Americans aged 18-34 have never done a course or seminar on money management.

In other words, many people have major deficiencies in knowing about money and how they “work”. “Some spend more time looking for a new barbecue than informing about what type of mortgage they should do for the home they want to buy,” says Randy Kurtz, the manager of a Chicago financial advisory firm.

3. Buy things without practical justification

You have to realize the great difference that exists between what you “want” and what you really need. Regardless of the nature of the object we are talking about, whether it’s a refrigerator, a CD player, a mobile phone or a car, the temptations you’re undergoing are big traps and it’s not always easy to resist them.

However, you must keep in mind the reason why you need that object, that is its practical utility. Do you really need all the features and facilities that it offers you, or do you just like it because it’s the hottest? Because, if so, you are about to fall into one of the great pitfalls for your prosperity.

4. Get into panic and do something under pressure

You’re never compelled to react for the moment. You can be stressed and still make good decisions. But if you feel that your heart is crazy and your mind can not focus on anything, you should probably delay the decision you need to take and remember that “the night is a good counselor.”

Whether there is a negative or a positive event (both can put tremendous pressure on you), try not to make a financial decision on the spot. It is good to distance yourself a little bit, see things in perspective, and find out what people you trust are thinking. Emotions can distort your perception, and it’s easy to fall into traps you could otherwise have avoided.

5. The instinct tells you “no”

Just think a little: why does your instinct tell you that spending money in this way is a mistake? Is not that one of those traps you should avoid? It might be so … So do not ignore it and think again if what you are going to do is really a good idea.

Lenno Joins Viventor peer-to-peer lending marketplace

Viventor logo

Viventor partners with Lenno, a Bulgarian lender that also operates in Poland, Czech Republic and Russia.

Established in 2012 as TNK Capital Management JSC, the company carried out a rebranding and started operating under the brand of Lenno in the second half of 2017.  The company has been registered as a financial institution with the Bulgarian National Bank since 2013.

Lenno provides loans secured by real estate to both businesses and private borrowers, with the average Loan-to-Value ratio across the loan book standing at 49%. The majority of loans issued are secured by properties located in the biggest cities of Bulgaria: Sofia, Plovdiv, Varna and Burgas. To date, Lenno has originated approximately EUR 7 million worth of loans, with the ambition to considerably increase its presence in Czech, Polish and Russian markets in the near future.

We are always striving to be among the pioneers in the industry and it is for this reason that our newly formed partnership with Viventor is vital for our company’s mission. Accessing a new stream of capital will help us focus on expanding our business into new markets and will allow us to focus on developing innovative financing products.”

Aleksandar Tonkov, CEO of Lenno
Lenno loans on Viventor

  • 2500-250000 EUR in size
  • 6 months-5 years in duration
  • 7%-10% projected annual return
  • 60 day Buyback guarantee

The company will initially list its loans from Bulgaria. In addition to Buyback and collateral in place, all the loans will be listed in Euros. On top of that, Lenno will maintain 5% skin in the game stake in every single loan.

Personal loans issued in Bulgaria by Cash Credit now available on Mintos marketplace

Mintos logo

The newest addition to the Mintos marketplace are personal loans issued in Bulgaria by Cash Credit, a leading Bulgarian fintech company operating in the retail and online lending space.

Cash Credit is part of Cash Credit Group, which operates in Bulgaria, South Africa, and the Philippines. The group employs a unique business model of partnering with mobile service providers; this gives Cash Credit Group an advantage when assessing borrowers’ credit worthiness, and allows them to issue loans quickly and conveniently. At the beginning of 2017, Cash Credit became the first company in the world to grant credit via Viber – a popular messaging, voice and video call mobile application.

“Joining Mintos will allow us to further utilize Cash Credit’s know-how in efficient and profitable lending, while providing competitive returns to investors on the Mintos marketplace. We chose Mintos because we share similar values and a vision for the future of the financial services sector,” says Anton Karagiozov, CEO of Cash Credit and member of the board of directors of Cash Credit Group.

The majority of Cash Credit borrowers in Bulgaria are private individuals seeking loans for general needs, repair and maintenance or utility payments. Operating online and in close to 70 retail offices, the company offers the fastest credit approval on the Bulgarian market – within less than six minutes.

The personal loans Cash Credit is set to offer investors on the Mintos marketplace will range from EUR 100 to EUR 1 000, with a repayment period of up to 18 months. The average net annual return to investors will range from 10 to 12%.

Cash Credit loans will be supplemented with a buyback guarantee covering loans delinquent for more than 60 days. Historically, the share of Cash Credit loans late by 60 days or more has been below 15%.

To retain its skin in the game, Cash Credit will keep at least 5% of each loan on the Mintos marketplace on its balance sheet.

“Bulgaria is a high-potential market. Investors on the Mintos marketplace have demonstrated solid demand to invest in loans issued in this geographic region. We are truly excited to start a cooperation with one of the top alternative finance providers in this country,” says Martins Sulte, CEO and co-founder of Mintos.

Since its establishment in 2011, Cash Credit in Bulgaria has disbursed more than 240 000 loans worth more than EUR 55 million.

Cash Credit in Bulgaria had 15 000 active customers and a net loan portfolio of EUR 3.6 million, as of July 2017. During the first seven months of 2017, the company has issued loans worth EUR 7.5 million.

At the end of 2016, Cash Credit in Bulgaria had EUR 4.5 million in equity, EUR 5.2 million in assets and produced a 19% return on assets.

Cash Credit has received recognition for its successful business development. In 2013, the company raised USD 25 million investment from the global advisory and investment firm Delta Partners Capital Limited.

ID Finance announces the launch of Mexico operations

ID Finance, the emerging markets fintech company, has expanded its presence in Latin America with a launch into the Mexican online lending market. The announcement comes less than a year after the company launched operations in Brazil and represents another key milestone as it continues its aggressive global expansion. Boris Batine, Co-founder and CEO at ID Finance, stated:

“It is an exciting time to be expanding our footprint in LatAm and we see enormous potential for online lending in Mexico. It is an important step towards becoming the number one alternative lender in the region.”

ID Finance explained that with a population of 127 million and 61percent of adults lacking a bank account according to World Bank, Mexico represents one of the largest opportunities for fintech in Latin America. Mexico’s low bank branch coverage – 14 branches per 100,000 inhabitants compared to 33 in the US – together with an underdeveloped transport infrastructure further exacerbates the need for fintech services. Yannick del Ponte, Country Manager at ID Finance Mexico, commented:

“The growth in internet usage and smartphone penetration is creating an enormous opportunity for fintechs. ID Finance’s unique scoring technology gives us a significant advantage over the competition while our Moneyman online lending product will bring much needed simplicity and transparency for consumers here in Mexico.”

ID Finance went on to note that Mexico is expected to have 91.6m active internet users by 2021 and 75.4m smartphone users by 2022. Proposed government reforms centred on financial inclusion, and upcoming regulatory changes are driving development of the sector.

ID Finance was founded in Russia in 2012 and has rapidly expanded into Kazakhstan, Georgia, Poland, Spain, Brazil and now Mexico. The company posted 82 percent revenue growth for the first half of 2017 and has 3.8 million registered customers. It issues over 60,000 loans each month with monthly revenue of $15 million.

The emerging markets fintech company ID Finance reports 82% revenue growth in first half of 2017

ID Finance, the emerging markets fintech company, has reported 82% revenue growth for the first half of 2017 following successful expansion into the Brazilian online lending market. The data science, credit scoring and digital finance company has now processed over 1 million loans and is planning further expansion in Latam with a launch expected in Mexico later this year.

ID Finance was founded in Russia in 2012 and has rapidly expanded into Kazakhstan, Georgia, Poland, Spain and Brazil. It uses both traditional and alternative sources of data to improve access to competitive financial services and helps customers build their credit profile over time in order to gain access to more financial products. The company reached profitability in 2015 and is now issuing over 60 000 loans each month with monthly revenue of USD 15 million.

“We are very happy with our revenue growth as we continue to execute the plan. We are particularly excited by the huge potential for competitive and convenient online lending in Brazil – we’re seeing stronger growth and a higher return on marketing spend in Brazil than we’ve seen in any other market so far,” comments Boris Batin, co-founder and CEO at ID Finance.

Brazil is attracting considerable interest among fintech companies for several reasons. Firstly, the banking sector has a small number of players and competition is limited. Secondly, there are 61 million people that are blacklisted from the traditional financial system. Thirdly, Brazil has the largest smartphone market by volume in Latam.

According to a recent report from Goldman Sachs, the top five banks in Brazil hold 84 per cent of total loans excluding development banks. Meanwhile in retail branch banking, the top five banks have 90 per cent of branches. By way of comparison, in the United States the top five banks hold just about 20 per cent of all branches. ID Finance partnered with Brazilian bank Socinal Financeira to overcome regulatory challenges and accelerate its launch.

“Our banking-as-a-service platform is proving highly effective. It allows us to focus on our core strengths of client capture and credit scoring, while Socinal Financeira takes on the back-office function and regulatory requirements,” comments Alexander Dunaev, Co-Founder and COO, ID Finance.

According to Goldman Sachs, Brazil has an estimated revenue pool of USD 24 billion for fintech companies over the next 10 years, with payments, lending and personal finance the most promising segments. The Latin American Private Equity and Venture Capital Association saw fintech companies in Brazil attract USD 113 million in venture capital in 2016, more than 10 per cent higher than the USD 102 million pledged in 2015 despite a broader decline in venture capital investment in Brazilian startups.

“ID Finance is one of the fastest-growing and fastest-moving online lenders globally. We have effectively built the digital infrastructure for online lending in six countries within just five years and we remain on track for our launch in Mexico this year,” continues Boris Batin, co-founder and CEO at ID Finance. “Our continued diversification across both geographies and products means we are confident in revenue growth and over 80 per cent of our revenue will be from outside of Russia by the end of 2019.”

EUR 300 million invested through Mintos

Mintos logo

Mintos has reached a new milestone – EUR 300 million has been in invested through the marketplace. More than EUR 200 million has been invested in 2017 alone, making Mintos a clear market leader in continental Europe with a 40% market share, according to AltFi Data.

In other words, about EUR 1 million is invested in loans through Mintos daily. To put that in perspective, this is three times more than just a year ago. Mintos is growing fast, and this growth is reflected in the rapid expansion on both sides of the marketplace.

On the investor side, about 2 000 new investors join Mintos each month. As of the end of August 2017, there were more than 32 000 investors from 64 countries on the Mintos marketplace.

On the supply side of the marketplace, there are 27 loan originators from 14 countries. This makes Mintos the world’s largest marketplace of its kind. The first loan originator from Africa just joined the marketplace, making it the third continent from which Mintos offers loans.

Creditstar offers loans granted in the Czech Republic on Mintos marketplace

Creditstar Group is strengthening its presence on the Mintos marketplace by offering short-term and personal loans granted in the Czech Republic. Loans will be listed both in euro (EUR) and Czech koruna (CZK).

Creditstar is one of the leading non-bank lenders in Europe, offering unsecured consumer loans in eight countries. The Czech Republic is the third Creditstar country, alongside Poland and Spain, that will have loans on the Mintos marketplace. To date, Creditstar loans worth more than EUR 8.4 million have already been financed through the Mintos marketplace.

Czech Republic-issued Creditstar loans on the Mintos marketplace will range from CZK 1 000 to CZK 19 000, with a repayment period of up to three months. The average net annual return to investors will reach 12%.

Creditstar will offer a buyback guarantee for loans that are delinquent for more than 60 days. The obligations of Creditstar Czech will be guaranteed by Creditstar Group. To retain its skin in the game, Creditstar will keep at least 5% of each loan on the Mintos marketplace on its balance sheet.

The company puts a strong emphasis on responsible lending policies and individual customer service. The typical Creditstar client is an active, young male, 26-35 years old, living in a small town. Creditstar has a strict credit policy – only around 30% of applications are accepted. Debt collection companies are involved in the recovery of non-performing loans.

The company is headquartered in Estonia, where Creditstar is a market leader with a 40% market share. Creditstar has established subsidiaries and provides services in Estonia, Lithuania, Poland, the Czech Republic, Finland, Sweden, Spain, and the United Kingdom. The total number of active customers throughout the Creditstar Group currently exceeds 272 000.

The aggregate loan portfolio of Creditstar Group was EUR 52 million as of June 2017. The company has EUR 13.1 million in equity and EUR 58.8 million in assets. Creditstar has been profitable each year since its founding in 2006. Last year, it generated EUR 1.6 million in net profits.

At the beginning of the year, Creditstar Group was also selected as one of 10 Ruban d’Honneur recipients for the ELITE Award for Growth Strategy of the Year in the 2016/17 European Business Awards. Creditstar was one of only 110 finalists announced; over 33 000 businesses participated in the competition. The panel of independent judges praised Creditstar for its strong growth and core values of innovation, ethics, and success.

New loans for investment from ID Finance in Georgia

Mintos logo

ID Finance has further diversified investment opportunities on the Mintos marketplace by adding personal loans issued in Georgia under its Solva brand. Solva is a fully-owned ID Finance subsidiary in Georgia. It has disbursed 28 000 loans worth EUR 12 million since beginning operations in late 2016.

ID Finance joined Mintos in March 2017, offering investors the opportunity to invest in personal unsecured loans issued in Spain.

“We are pleased to expand cooperation with the Mintos marketplace. Solva is an innovative product in global online lending. It was developed for prime clients and offers attractive terms of personal loans. Solva closely approximates conventional bank loans with additional focus on transparency, ease and convenience of service. Thanks to our technological innovation and efficient business model, we can offer investors a high annual net return,” says ID Finance co-founder and CEO, Boris Batine.

The average Georgia-issued loan ID Finance will place on the Mintos marketplace will be EUR 1000, with a repayment period of up to 12 months. Investors will be able to invest in Georgian lari and in euro. The annual net return offered to investors will reach 16%.

The loan originator will offer a buyback guarantee for loans that are delinquent for more than 60 days. In July 2017, the share of non-performing Solva loans was 4%.

To retain its skin in the game, ID Finance will keep at least 10% of each loan available on the Mintos marketplace on its balance sheet.

Solva’s key innovation is its unique scoring system. The company’s decision-making system is built around machine learning, probabilistic risk assessment techniques, multiple search technologies, big data and text mining. The system also evaluates the device on which the application is being filled out and the user’s behaviour when filling out the application. These techniques support a positive decision on granting loans to users who are usually denied loans by banks.

ID Finance group is a fast-growing data science, credit scoring and digital finance provider that is pioneering fintech in emerging markets. The company was established in 2012; it is now the largest online consumer lender in CIS region and a leading one in Europe. Headquartered in Barcelona, the company operates in Spain, Kazakhstan, Georgia, Poland, Russia and Brazil, and plans to boost its presence in Latin America in the near future.

ID Finance has over 3.8 million registered customers, and more than 1.126 million loans worth USD 240 million have been issued to date. In 2016, ID Finance issued loans worth USD 92 million and generated USD 68 million in revenue, a 222% y-o-y growth. The company has been profitable since 2015.

ID Finance has received high praise in the industry, including many prestigious awards. In 2017, it was named the Fastest Growing Alternative Finance Company in Europe 2017 by Global Banking & Finance Review magazine.

Invest in new loans offered by ID Finance, and be sure to add ID Finance loans issued in Georgia to your Auto Invest portfolio.

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