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Investments made through Mintos into ID Finance’s Kazakhstan-issued loans gain 10 % yield in one and a half months

By MPI21st June 2018News, Peer-to-Peer LendingAlexander Pak, ID Finance, invest, investor, Kazakh Tenge, Kazakhstan, KZT, Mintos, peer-to-peer lending

Investors who used Mintos to invest in the loans of ID Finance Kazakhstan, denominated in Kazakhstani tenge, received returns in EUR terms 7.2% above the declared rate due to appreciation of the Kazakhstan tenge (KZT) against the Euro (EUR). Moreover, investors received a 17% annual interest as investment earnings – one of the highest rates on Mintos. This return rate is normally 10.5% for investments in EUR.

ID Finance Kazakhstan has been working with Mintos since April 12, 2018. In one and a half months, the exchange rate of KZT against the EUR has increased by 7.2%. This means that investors at Mintos gained almost a 10% holding period yield.

“The high yield of this instrument is explained by fundamental factors: the main force behind the growth of the KZT is oil prices, which have been increasing throughout the whole year, and this is a long-term trend,” explains Alexander Pak, CFO of ID Finance in Kazakhstan.

He adds that the advantage of investing in KZT is that alongside a high nominal yield investors may gain optional profits due to currency appreciation.

Alexander Pak says that by using Mintos, ID Finance is planning to fund loans worth EUR 6 million on an outstanding basis before the end of the year, with 40% of that sum in the national currency of the Republic of Kazakhstan.

The historical performance of KZT does not predict its movements in the future and the FX gain is not in any way predictable or even more so guaranteed.

ID Finance now offers loans for investment from Kazakhstan on Mintos p2p lending marketplace

By MPI12th April 2018News, Peer-to-Peer Lendingbuyback guarantee, EUR, ID Finance, investment, Kazakhstan, KZT, Mintos, peer-to-peer lending, personal loans, Solva

ID Finance now offers even more investment opportunities on Mintos by launching its Kazakhstan-issued personal loans listed in Euro (EUR) and Kazakhstani tenge (KZT) on the marketplace under its Solva brand. This is in addition to the loans already available for investment from Georgia and Spain.

Solva Kazakhstan specialises in issuing personal online loans to individuals and small and micro-entrepreneurs. The company offers borrowers fast access to funds, an online application can be made in less than eight minutes and borrowers receive a decision instantly. Since its establishment in 2016, it has funded more than 6 100 loans worth around EUR 4 million. The operations of Solva Kazakhstan are regulated by the National Bank of Kazakhstan. ID Finance Group has two fully-owned lending companies operating in Kazakhstan – Solva Kazakhstan and MoneyMan Kazakhstan.

The average Kazakhstan-issued loan on Mintos from Solva Kazakhstan is EUR 650. You can expect an average net annual return of up to 11% for the company’s loans listed in EUR and 17% for KZT loans.

Solva Kazakhstan loans are secured with a buyback guarantee and will be repurchased if they are delinquent for more than 60 days. In addition, the company will retain 10% of each loan placed on the marketplace.

Established in 2012, the ID Finance group is a pioneer in the fintech industry in emerging markets. It is a fast-growing data science, credit scoring and digital finance provider. It is the largest online consumer lender in the CIS region and a leading one in Europe. Headquartered in Barcelona, the company operates in Spain, Kazakhstan, Georgia, Poland, Russia, Brazil and Mexico. The Research and Development centre of ID Finance is based in Minsk, Belarus. So far, the group has originated loans worth more than EUR 275 million and it had a net loan portfolio of around USD 77 million, as of December 31, 2017.

ID Finance joined Mintos in 2017 and has since funded EUR 21 million worth of loans. Kazakhstan is the third country the company offers investment opportunities from on Mintos and it currently lists loans in three currencies – EUR, KZT and the Georgian Lari (GEL).

ID Finance now offers Georgia-issued loans for investment in EUR on Mintos P2P lending marketplace

By MPI13th December 2017News, Peer-to-Peer LendingEUR, Georgia, ID Finance, Mintos, personal loans

ID Finance now offers its Georgia-issued personal loans on Mintos for investment in euro (EUR). These loans are the same as the Georgia-issued loans already on the marketplace from ID Finance listed in Georgian lari (GEL) – but in EUR for your convenience.

“Georgia is a country with great business opportunities. It has about four million people and promises serious growth of the fintech industry in the next few years. With this move, we have removed the currency risk for EUR investors. The five-fold growth of ID Finance’s revenue from the beginning of 2017 gives investors the confidence in high profitability and security of investments,” says Boris Batine, co-founder and CEO of ID Finance.

The average Georgia-issued loan from ID Finance on Mintos is EUR 1 000, with a repayment period of up to 12 months. The annual net return offered to investors in EUR will reach 11%.

The typical ID Finance borrower in Georgia is a 35-year-old highly-educated male. He is married and raising a child. He owns a house or an apartment, has a full-time job and earns 10-15% more than the average Georgian citizen.

ID Finance will offer a buyback guarantee for loans that are delinquent for more than 60 days. For each loan placed on the Mintos marketplace, the company will keep at least 10% on its balance sheets to retain its skin in the game.

Since joining Mintos in March 2017, more than EUR 10 million has been funded. ID Finance has issued 1.3 million loans worth USD 300 million to date. For the first 10 months of 2017, ID Finance issued loans worth USD 152 million and generated USD 100 million in revenue, a 93% period growth. The company has been profitable since 2015.

Established in 2012, ID Finance is the largest online consumer lender in the CIS region and a leading one in Europe. ID Finance has over 4.2 million registered customers. The company’s headquarters are in Barcelona, and it operates in Spain, Kazakhstan, Georgia, Poland, Russia, Mexico and Brazil. Following the company’s geography expansion plans, ID Finance is boosting its presence in Latin America.

ID Finance offers more investment opportunities from Spain on Mintos p2p marketplace

By MPI19th November 2017News, Peer-to-Peer LendingID Finance, Kazakhstan, Mintos, MOnayMan, Sapin

Mintos announce that, starting today, ID Finance will be offering the opportunity to invest in Spain-issued personal loans with repayments in several instalments. This is in addition to the ID Finance short-term loans from Spain and personal loans from Georgia already offered on Mintos.

ID Finance Group is pioneering fintech in emerging markets. Founded in 2012, the company is now the largest online consumer lender in the CIS region and a leading one in Europe. The group operates in Spain, Kazakhstan, Georgia, Poland, Russia, Brazil, and Mexico. In Spain, ID Finance issues loans under its MoneyMan brand.

For consumer loans, borrowers usually take out larger sums of money with longer repayment terms. This gives investors the opportunity to lock-in the interest rate on their investment for a longer period of time. New Spain-issued loans from ID Finance will range from EUR 50 to EUR 1 200 with a repayment period of up to four months. Investors can expect a return of up to 11% per year.

ID Finance will offer a buyback guarantee for loans delinquent more than 60 days. To align its interests with those of investors, the company will keep at least 5% of each instalment loan placed on the Mintos marketplace on its balance sheet.

Since its inception in 2012, ID Finance has issued more than 1.126 million loans worth USD 240 million. In 2016, the company issued loans worth USD 92 million and generated USD 68 million in revenue, a 222% year-on-year growth. In the first half of 2017, the company had a revenue growth of 82% following a successful expansion into the Brazilian online lending market. The company has been profitable since 2015.

ID Finance has more than 4 million registered customers. In the first 9 months of 2017, ID Finance has issued more than 550 000 loans worth USD 134 million.

The MoneyMan brand was founded in Spain in 2015 and aims to make the financing market simpler, more accessible, and more transparent. Following the establishment of its operations in Spain, ID Finance moved its headquarters to Barcelona in 2016, underlining the importance of the company’s Spanish operations.

Since ID Finance joined Mintos in March 2017, more than EUR 6.3 million in ID Finance loans have been funded through the marketplace.

If you use Auto Invest on Mintos and want to invest in new ID Finance loans issued in Spain, be sure to adjust your Auto Invest settings accordingly.

ID Finance announces the launch of Mexico operations

By MPI24th September 2017News, Peer-to-Peer Lendingfintech, ID Finance, launch, Mexico, operations, peer-to-peer lending

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

By MPI8th September 2017News, Peer-to-Peer LendingBrazilian, expansion, fintech, ID Finance, lending market, revenue growth

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.”

New loans for investment from ID Finance in Georgia

By MPI29th August 2017News, Peer-to-Peer LendingGeorgia, ID Finance, marketplace, Mintos, peer-to-peer lending, personal loans, skin in the game

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.

ID Finance and Da Vinci Capital launch $200m fintech fund

By MPI29th August 2017News, Peer-to-Peer Lendingasset management, Da Vinci Capital, fintech fund, ID Finance

ID Finance has joined forces with former Elbrus Capital fund manager Yuri Popov and asset management company Da Vinci Capital to launch FinTech Credit Fund, a $200m debt finance fund aimed at financial technology companies with a focus on alternative lending.

FinTech Credit Fund will offer debt finance to companies looking to scale and will cover loans to the companies themselves, as well as financing of their loan portfolios. The duration of the agreement will range from six months to three years.

“The vast majority of money going into fintech is chasing a small number of well-known startups. There are many more high quality fintech companies all over Europe, some of which are performing extremely well, that are seeking capital to scale,” comments Boris Batine, Co-Founder and CEO at ID Finance. “We see a huge opportunity to support these companies while providing a superior risk adjusted return to investors.”

The Fund will initially focus on projects within the CIS and European markets. Funding will be provided to companies involved in consumer and SME lending, and both balance sheet and marketplace (p2p) lenders will be eligible. Projects offering analytical solutions for credit scoring based on Big Data, AI and machine learning, as well as SaaS and PaaS solutions and payment services are of particular interest to the Fund and align with the investors’ areas of expertise.

Investment decisions will be made following assessment of a number of criteria including: a company’s creditworthiness, the strength of their business model and technology, the quality of their loan portfolios, and risk and revenue potential.

“ID Finance and Da Vinci Capital will provide a solid investment process and infrastructure for the Fund as well as access to our broad network of institutional and private investors. Our expertise in fintech and alternative lending at an international level will also help to reduce credit risks,’” added Oleg Zhelezko, Managing Partner, Da Vinci Capital.

“The lack of access to the capital market is a key factor hampering the growth of the financial industry. The access to capital markets is often open only to large companies. Similar problems are experienced by companies around the world. FinTech Credit Fund seeks to meet the need of fintech companies in the sources of constant capital for their further development,” said Yury Popov, Managing Director, FinTech Credit Fund.

ID Finance is one of the fastest growing and fastest moving online lenders globally. The balance sheet lender was founded in Russia in 2012 and has rapidly expanded into Kazakhstan, Georgia, Poland, Spain and Brazil.

“We see a huge opportunity to back the billion-dollar companies of tomorrow focused on digital lending,” continues Alexander Dunaev, Co-Founder, ID Finance.

About the global FinTech industry

The main drivers of the growth of the Fintech industry are the change in consumer preferences of the millennium generation, innovative technology and products, the development of market infrastructure, the increase in penetration and development of telecommunications services, the spread of APIs and the reduction in the cost of attracting users. The banking industry is at the greatest risk of change from the fintech companies. According to Accenture Banking 2020 report, by 2020, fintech companies will deprive banks of a third of revenue, and traditional banking services will become easily replaceable by the services of technology-oriented Internet-centric players. According to Preqin, funds attracted annually to direct lending funds for alternative lending industry, have increased tenfold over the last ten years to $ 21 billion in 2016.