Author Archives: MPI

New bid allocation model at Bondora

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Bondora’s new bid allocation model levels the playing field for investors

Marketplace lending is becoming a mainstream investment choice. However, as the investor base grows, so does the competition for loans.

Originally, if a loan received too many bids (overbid), Bondora would rank the bids based on size. Unfortunately, this method made it difficult for investors with smaller bids to get the loan. Some investors got their entire bid accepted while others were left out. Now, they are changing the bid allocation model to be more inclusive to all bidders.

They will no longer rank the bids based on size. Instead, they will proportionally distribute loans among all investors trying to buy them. In short: All bidders will get a piece of the loan. This way everyone – big and small investors – will get access to the same loans.

Here’s an example of how the new system will work: A borrower requests a €1,000 loan. Several investors bid a total of €2,000. As a result, each investor who made a bid would have 50% of their bid accepted. This way each investor would be able to get access to all loans they want, albeit sometimes for much smaller amount they wanted.

This bid allocation model implementation will be automatic and requires no action from investors. Bondora will be removing investor ranking on 20th of April . However, please note that minimum investment size setting in the API and Portfolio Manager will become obsolete with this change.

Initially, there will be an absolute minimum investment size of €1 in order to facilitate investment level calculations using the current technology. Over the coming months Bondora will however be rolling out a new infrastructure that allows fractionalizing loans to much smaller units making the proportional distribution even more precise.

Bondora accept deposits with Visa and Mastercard debit and credit cards

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New instant payment options at Bondora. You can use a Visa, Mastercard credit and debit cards or SOFORT online payments to make an instant deposit. These changes mean users can invest faster. These new options come at no additional cost. Once you make a payment you will immediately see the results in your Bondora account.

You can add funds to your account in a five easy and secure steps: (1) enter the payment amount, (2) enter your credit card details, (3) log in to your bank in case of 3D Secure, (4) confirm the transaction and (5) see the deposit immediately on your Bondora account.

Secure payments

All these options come without sacrificing any of the privacy users expect. Wirecard Bank secures all payments via credit card. Bondora do not receive or retain any user’s credit card information. This method meets all the regulations required for PCI certification. The users in Austria, Belgium, Germany, Italy, the Netherlands, Poland, Switzerland, and Spain can choose SOFORT as an instant payment option. This secure method requires no storage of any confidential information.

Capital Service joins the Mintos marketplace

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New loan originator from Poland joins the Mintos marketplace! Capital Service has joined Mintos and, starting 23/03/2017, will place installment loans issued on- and offline in Poland on the platform.

Capital Service operates the second-largest non-bank lending branch network in Poland. The company  was founded in 1999 and has accumulated significant experience in consumer lending over the past 18 years. Capital Service loans placed on the marketplace will range in size from EUR 250 to EUR 3 600, with a repayment deadline of 3 to 48 months. The net annual return is expected to range from 10% to 12%. For each loan placed on the Mintos marketplace, Capital Service will retain at least 10% on its balance sheets – part of its “skin in the game.” Capital Service will offer a buyback guarantee for loans that are delinquent for more than 60 days.

Investment opportunities from Capital Service will be offered in euro (EUR) and Polish zloty (PLN).

Capital Service employs more than 430 people. Since beginning operations, it has gained more 51 000 active customers. Last year, Capital Service had a revenue of EUR 19.2 million, with profit before tax slightly above the EUR 1.8 million mark. Its equity stood at EUR 5 million at the end of 2016. The share of loans overdue by more than 60 days in the company’s portfolio is 7.5%.

Capital Service’s mission is to provide customers with simple access to cash – quickly, conveniently, at any time, in any place and at a reasonable cost. The company uses the newest IT solutions to allow for fast and efficient data processing and loan issuing decisions.

To date (23/03/2017), 21 loan originators have joined the Mintos marketplace, ensuring investors with wide investment options.

New loan originator on Mintos marketplace – Mozipo Group

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One of Lithuania’s biggest online consumer loan lenders has joined the Mintos marketplace! Starting 22/03/2017, Mozipo Group will place short-term personal loans issued in Lithuania under the Moment Credit brand on the platform.

Loans that Mozipo Group will place on the Mintos marketplace are expected to range from EUR 100 to EUR 3 000, with a repayment period of 3 to 36 months. The loan originator will offer investment opportunities in euro (EUR).

The average net return to investors is expected to be around 12%. Mozipo Group will offer a buyback guarantee for loans that are delinquent for more than 60 days. To retain its “skin in the game,” Mozipo Group will keep at least 10% of each loan available on the Mintos marketplace on its balance sheet.

Mozipo Group has been operating for more than ten years. The Group is known in the industry as a reliable, transparent and responsible non-bank financial institution. Currently, Mozipo Group works in Denmark, Lithuania and Romania, and plans to expand to other European countries. The company currently employs more than 60 people.

Mozipo Group issues unsecured personal loans. Since beginning its operations, the Group has served more than 200 000 customers. The company has issued 620 000 loans worth over EUR 125 million. Last year, 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. The company plan to issue loans worth EUR 23 million this year.

Mozipo Group’s average client is a 36-45 year old city resident with an average monthly income. Issued loans are primarily used to cover daily and unexpected expenses.

An effective risk scoring system reduces the number of non-performing loans issued, thereby increasing Mozipo Group’s competitiveness in the market.

All of the fundamental and operational business-related processes in Mozipo Group are managed in-house, which ensures high quality service. The Mozipo Group IT department has created a unique self-learning Scoring System as well as an automated Business Management System for Lithuania; these are also easily adapted for other countries.

The company’s mission is to make consumer lending more efficient by using technology to connect money with people in the simplest and fastest way possible.


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