As part of Mintos security policy, they announce that investors can now enable two-factor authentication for their investment accounts. Investors can now add an extra layer of security to their account by entering a verification code after the usual log in.
Why is two-factor authentication important?
Two-factor authentication helps protect your account from unauthorised access as a result of a compromised password, phishing attacks and other cybercrime. In order to ensure that the only person logging into your account is you, the sign-in with the two-factor authentication will require your password and your Security Key which you will type in via an app on your phone. This means that even if someone has your password unless they also have your phone or other trusted device with them, they will not be able to access your account.
How can you enable two-factor authentication?
– Install a Google Authenticator app on your Android or iOS device if you don’t already have one. If you need help getting started, please see Google’s Support Page;
– Open Security settings in your Mintos account and scan the QR code with the Google Authenticator app;
– Enter the Two-factor authentication code provided by the Google Authenticator app.
Spanish mortgage lender FIREOF Management, which recently launched on Mintos, now offers investors the opportunity to invest in its loans by selecting them based on loan risk categories. The inclusion of the risk categories will allow investors to make more informed investment decisions.
FIREOF loans have a historical track record of 0% loss given default (LGD) and 0% bad debt rate due to the high loan-to-value ratio (average below 35%), thorough analysis of the borrowers and collateral as well as the personal guarantee provided for the loans. The risk of losing the principal has historically been very low and the main risk has been related to liquidity – locking in the investment during the court collection process which varies and averages 18 months.
FIREOF will provide loan risk ratings in each scoring category based on the predicted probability of default (PD) – assessment of the probability of loans becoming 90 days late when the court collections process is being initiated.
FIREOF Risk Categories
Category (Score)
PD*
Interest rate to investor
AAA (1000-851)
0,63% – 0,70%
5,00% – 6,00%
AA (850-701)
0,95% – 1,04%
5,50% – 6,50%
A (551-700)
3,76% – 4,15%
6,00% – 7,00%
BBB (500-551)
5,04% – 5,57%
6,50% – 7,50%
BB (451-500)
5,79% – 6,40%
B (331-450)
7,24% – 8,00%
C (0-330)
9,78% – 10,81%
* Probability of default (loans going into court collection, more than 90 days past due). Historically FIREOF has been able to recover 100% of principal for all defaulted loans.
FIREOF bases the risk categories on their scoring model that is being used to assess the riskiness of the loans they are issuing. Their scoring model, based on a FICO score (a type of credit score created by the Fair Isaac Corporation), has been specifically designed for the mortgage secured lending business in Spain. It takes into account various factors in three main areas to determine the credit quality: borrower profile, collateral liquidity and loan type risk.
FIREOF takes into account the loan type risk (35% of score), collateral liquidity (35-40%) and borrower profile (25-30%) to determine the credit score for each loan. Scores range between 0 and 1 000. In general, scores above 550 indicate a good credit quality. In contrast, loans with scores below 500 mean the credit quality is inferior – borrowers might find it difficult to repay monthly instalments, the quality of the collateral is sub-optimal or the loan type holds a larger risk. Currently, FIREOF plans to offer only loans with category BBB and higher for investment to Mintos investors.
Loan Type Risk
In order to determine the loan type risk, different aspects of loan parameters are taken into account, including the amortization type, the term of the loan, APR charged to the borrower, loan amount and reason for taking the loan.
Collateral Liquidity
To reach an acceptable score for collateral, collateral type (internal liquidity), market size and liquidation price (external liquidity) are analysed together with government public ratios to measure the potential of selling the collateral in case the borrowers of FIREOF fail to repay their liabilities.
Loan to value (LTV) and loan to liquidation value (LTLV) are calculated on a principal cap basis. In addition, fraud detection triggers are deployed at an early stage.
Borrower Profile
As a general rule, borrower information is provided and analysed by the Spanish central bank. The information analysed includes the average default probability by age, debt to income ratio (DTI) and payment incident records in combination with the minimum income (of the borrower). The decision-making process is continuously improved based on past performance information
Established in 2015, FIREOF is an asset-secured lending business whose mission is to provide a financial bridge to Spanish consumers. FIREOF pursues a win-win relationship with their borrowers. The company is fully licensed and audited and it provides its credit products through established brokers.
IuteCredit has yet again expanded its investment offering on Mintos by placing its consumer loans issued in Kosovo on the marketplace. This is in addition to the loans that were already available for investment from IuteCredit in Albania and Moldova.
IuteCredit Group was founded in 2008 and operates in Moldova, Albania, Macedonia and Kosovo. The Group has a net loan portfolio of EUR 30 million and has helped more than 200 000 customers. It aims to create the extraordinary experience in personal finance, by exceeding customer´s expectations.
The average Kosovo-issued loan on Mintos from IuteCredit will be EUR 400 with a repayment period of 8 months. The expected return for investors will be up to 11%. As Kosovo has adopted the Euro (EUR) as its official currency, the loans by IuteCredit are offered in its local currency on the marketplace.
To align its interests with those of investors, IuteCredit will retain 10% of each loan placed on Mintos on its balance sheet. All Kosovo-issued loans from IuteCredit will come with a buyback guarantee and the company will undertake the obligations of repurchasing delinquent loans.
IuteCredit started its operations in Kosovo in November of 2017 and is regulated by the central bank of Kosovo. It is currently one of the alternative finance market leaders in the country. Since its inception, more than 8 000 loans have been issued in Kosovo worth more than EUR 3.5 million. As at the end of August 2018 its net loan portfolio in the country is EUR 2.2 million.
The Republic of Kosovo is Europe’s youngest country as it declared its independence from Serbia on February 17, 2008. According to the World Bank, during 2009 to 2017 real GDP grew on average by 3.5% each year. According to Investment Climate Statements for 2017, in 2016, the country ratified a strategic investment law. This was in order to ease market access for investors in key sectors.
To obtain exposure to IuteCredit Kosovo loans, investors will be able to invest in loans issued by Mintos Finance to IuteCredit Kosovo, where repayments depend on the borrower’s payments. Each loan issued by Mintos Finance to IuteCredit Kosovo will be pegged to a respective loan issued by IuteCredit Kosovo to the final borrower. Mintos Finance is a Mintos group company.
TIGO Finance from Macedonia launches on Mintos peer-to-peer lending marketplace. With this addition, investors now have the chance to invest in its consumer loans from Macedonia and earn net returns of up to 10%.
TIGO Finance is a financial company that applies innovative and modern technology to offer quick and easy micro-financing solutions to individuals. The company is fully licenced and operates in accordance with the Macedonian Law on Financial Companies since December 2017 when the first loans were issued.
Although TIGO’s focus is online lending, the company has opened five branches in Macedonia, located strategically in key demographic areas. The firm plans to open further branches in the next quarter so it is more accessible to its clients.
On Mintos, TIGO is planning to offer its short-term and personal instalment loans for investment. Macedonia-issued short-term loans from the company range from EUR 35 to 325 with a maturity of up to 30 days. The company’s instalment loans have a maturity of up to 24 months and the loan amounts are up to EUR 1 000.
“TIGO finance is pleased to join the Mintos marketplace, a unique place where the movement of capital is free and efficient. Given our advanced IT infrastructure, which allows us to obtain maximum efficiency and customer focus in operations, our partnership with Mintos will strengthen our position in the Macedonian market. This will help us to get one step closer to our goal of becoming the most well-known brand in the micro-financing industry,” says Filip Dimitrovski, Country manager of TIGO Finance in Macedonia.
From January 2018 up until the end of August 2018, the total amount of issued loans by TIGO Finance has reached EUR 1.43 million, with First Payment Default (FPD) levels lower than 10% over the same period. At the end of August, the company’s net loan book amounted to EUR 600 000. The company is continuously looking for opportunities to innovate and increase its ability to satisfy its customers’ needs and expectations.
TIGO Finance’s target market largely consists of clients who often have limited access to banking services. Borrowers can receive a loan in minutes, as the company applies an automated and flexible system to check its customers’ creditworthiness. This results in a credit pre-approval in only 30 seconds. This makes TIGO loans the fastest on the market.
The Mintos marketplace just got bigger as Credius now offers personal loans for investment in Romania. Credius is one of the five largest alternative lenders in Romania and it is backed by a private equity group from the United States, and you can invest in its personal loans listed in EUR now!
Credius is part of the American investment group of private equity funds New Century Holdings (“NCH”). NCH manages approximately USD 3 billion of capital through a network of nine offices in Eastern Europe, Russia and Brazil. NCH has been active on the Romanian market since 1994, particularly in such industries as real estate and finance & banking services.
“Romania, the leader of GDP growth in the European Union in 2017, is experiencing a transition from an offline to an online economy. Credius is both taking advantage of this opportunity and is one of the most important drivers of this transition”, says Andrey Buzgan, Credius CEO.
Credius is a lending company focused on the segment of instalment loans to individuals. The average Romania-issued loan on Mintos from Credius is EUR 750 with a repayment period of 12 to 24 months. You can expect a net annual return of up to 9.5%.
To align its interests with those of investors, Credius will retain 10% of each loan placed on Mintos on its balance sheet. All Romania-issued loans from Credius come with a buyback guarantee and Credius will undertake the obligations of repurchasing delinquent loans.
Credius started its operations in Romania in 2013. It is currently in the top five alternative finance market leaders in the country when comparing the number of customers, monthly volumes of new loan origination, and the size of its loan portfolio. Credius is a leading market player both with its innovative online technologies and in terms of sales volumes. Its branch network is one of the largest in Romania with more than 80 offices. The company’s activities are regulated by the National Bank of Romania.
Since its inception, Credius has issued 53 000 loans worth more than EUR 33 million. The company maintains a very strong balance sheet with no external debt on its books. In 2017 the company reached EUR 19 million in revenues and EUR 2 million in net profit. As of the end of June 2018, its loan portfolio of EUR 9.5 million had been financed exclusively by its shareholders through the injection of equity capital and subordinated loan as well as through the reinvestment of internally generated cash flows. Historically, the average part of its non-performing loan portfolio being overdue more than 60 days has been around 10%.
To obtain exposure to Credius loans, investors will be able to invest in loans issued by Mintos Finance to Credius, where repayments depend on the borrower’s payments. Each loan issued by Mintos Finance to Credius will be pegged to a respective loan issued by Credius to the final borrower. Mintos Finance is a Mintos group company.
A new loan originator from Russia has just launched on the Mintospeer-to-peer lending marketplace! Kviku is a leading fintech platform which currently provides instant online point-of-sale and instalment credit solutions to borrowers in Russia and Kazakhstan. In 2018, the company plans to expand its services into Spain and Poland. Kviku is the sixth loan originator with operations in Russia to join Mintos and you can now invest in its Russia-issued consumer loans listed in Euro (EUR) and Russian ruble (RUB).
Kviku was established in 2013 and was one of the first fintech company to challenge the traditional banks in Russia. The company operates completely online and offers a fast, reliable, convenient and transparent service. Kviku issues loans through its virtual credit card and point-of-sale partners and holds a microfinance license in Russia. First-time borrowers can take a loan up to EUR 300 to purchase online or offline goods and services. For repeat borrowers, the company offers cash instalment loans up to EUR 1 500 with a six month repayment period. Both loan products will be available for investment on Mintos.
“We are excited to be among the first originators to offer point-of-sale loans on the Mintos marketplace. The Russian online lending market is one of the most regulated globally and investors will surely benefit from the extra layer of regulation. Kviku is a leading European online point-of-sale lender and we look forward to diversifying our funding sources for loans that we issue in all of our countries of operations via our strategic partnership with Mintos,” says Kviku Founder and CEO Nikita Lomakin.
The average Russia-issued loan from Kviku is EUR 500 and around RUB 35 000. The average maturity of the loans is six months. For its loans listed in EUR, you can expect a net annual return of up to 10% in EUR and up to 17% for its loans listed in RUB.
All loans from Kviku will be secured with a buyback guarantee and will be repurchased if they become delinquent for 60 days or more. The company also offers investors another layer of risk mitigation, as it will keep 10% of each loan on its balance to maintain its skin in the game.
As of July 31, 2018, Kviku had issued 250 000 loans worth over USD 15 million. The company has experienced 10 times the amount of growth over the last 12 month, and has a net loan portfolio of USD 8 million.
Kviku prides itself on its fast service, due to its efficient credit risk assessment. The company has the shortest online application time in the industry and can analyse more than 10 thousand Big Data parameters within 20 seconds. The company uses over 30 databases to assess the creditworthiness of its borrowers.
Kviku is made up of a team of 25 employees who have helped create and maintain the convenient business model of the company. As a result, it has processed more than 700 000 applications. The typical borrower of Kviku is aged between 20-35 years old, has an average monthly income of EUR 1 000 and is considering to make an online or offline purchase but doesn’t have sufficient funds. Kviku’s business model assumes less risk compared to traditional payday loans, as only repeat borrowers get access to cash loans, whereas new clients can apply for non-cash loans to purchase goods or services.
Mintos is continuing its geographical expansion and they are happy to announce that they have just launched the first loan originator from Ukraine on the marketplace! Dinero is the fastest growing online lender in Ukraine and it specialises in short-term loans. The company now offers you the opportunity to invest in its short-term loans listed in EUR on Mintos with expected net annual returns of up to 9.5%.
Dinero was established in 2017 and as of June 30, 2018, it has issued more than 59 000 loans with a net loan portfolio of more than EUR 2 million. The main goal of Dinero is to provide customers with immediate assistance in the event of unforeseen financial situations. The way the company assesses the creditworthiness of its clients is by using various scoring models, depending on the clients’ sociodemographic parameters such as age, credit history and other factors.
“Dinero is very proud to join the Mintos marketplace. We see marketplace lending as one of the global financial market trends, and Dinero is the first Ukrainian microfinance company to join a European lending marketplace,” said Ilya Vesely, CEO of Dinero.
Ukrainian-issued short-term loans from Dinero on Mintos range from around EUR 20 to EUR 360. The repayment period ranges from 7 to 30 days. You can expect a net annual return of up to 9.5%.
All Dinero’s loans are secured with a buyback guarantee, meaning any loans that are delinquent for more than 60 days will be repurchased. The company will maintain 10% of each loan placed on Mintos on its balance sheet, to maintain its skin in the game.
Investment structure
Taking into consideration legal requirements and investors’ interests, investors will be able to obtain exposure to Dinero loans by investing in loans issued by Mintos Finance SIA, Mintos Group company, to Mondoo SIA, a Dinero group company.
The repayment of each loan issued by Mintos Finance to Mondoo will be pegged to the repayment of a respective loan issued by Mondoo to Dinero and this loan will be pegged to repayment of the respective loan issued by Dinero to the borrower. Mintos Finance loans will be directly secured by a pledge on claims arising from Dinero loans issued to borrowers.
Mintos Finance will provide funding to Mondoo up to 90% of the principal of a respective loan Dinero has issued to its borrower. Accordingly, Dinero will keep 10% skin in the game. Dinero will repay the loan to Mondoo in lockstep with the repayment of the respective loan Dinero has issued to its borrower.
Should the borrower’s loan become delinquent for 60 days or more, Mondoo would ensure the repayment to Mintos Finance of the respective part of the loan received from Mintos Finance in full, together with accrued interest and Mondoo would ensure the buyback of the claims on this loan from investors.
“We are very pleased to welcome Dinero to the Mintos family. Our main goal at Mintos is to create a global marketplace for loans and geographical expansion is key to achieving this goal. We hope our investors enjoy this fantastic opportunity to diversify their investment portfolio and invest in Ukraine-issued short-term loans,” says Martins Sulte, CEO and Co-founder of Mintos.
The typical borrowers of loans issued by Dinero are aged 18 to 75 years, who usually take loans for personal unforeseen expenses. The company charges its borrowers an annual percentage rate (APR) of 270%.
Since its foundation in November 2017, in just eight months of operations, the company has disbursed a total of more than EUR 4 million in loans. Dinero currently employs more than 80 employees and as of June 30, 2018, the number of active customers exceeded 37 000.
EGE Finance from Finland has just launched on the Mintos peer-to-peer lending marketplace. You can now invest in its short-term loans and earn net annual returns of 9 to 10%.
EGE Finance is part of BB Finance Group which was founded in Estonia in 2006. It is a technology-driven consumer credit company and the team consists of 70 professionals worldwide. The company provides short-term loans to clients mainly in Estonia, Finland, Czech Republic and Georgia with its headquarters located in Tallinn.
“BB Finance Group has earned the trust of many institutional and private investors. However, we are always interested to further diversify our funding sources and let new investors earn returns on our good results. Mintos has also shown real professionalism in the lead up to listing our loans on their marketplace. We are always glad to find opportunities to work with such people and companies,” said Urmo Kokmann, the COO and co-founder of BBFG.
On Mintos, the average Finland-issued loan from EGE is around EUR 270 with a repayment period of up to 93 days. You can expect a net annual return of 9 to 10%.
All loans from EGE will come with a buyback guarantee and will be repurchased if a loan is delinquent for 60 days or more. Furthermore, it will retain 5% of each loan placed on Mintos on its balance sheet to keep its skin in the game.
BB Finance Group has issued around 650 000 loans worth EUR 135 million. Since its inception, the company has attracted 430 000 registered clients. Its net portfolio amounts to EUR 13.8 million. In 2017, the company issued EUR 30 million worth of loans, 82% of which were to returning customers.
Since 2014 the company has continuously invested in technology. As a result, it has delivered a portfolio growth of 47% per year on average. BB Finance Group develops and monitors its own credit scoring system, decision-trees and also uses external credit databases. Over 80% of its clients last year were returning customers who had already repaid one or more previous loans and shown a reliable repayment discipline. Non-performing loans contribute to 4% of the company’s loan portfolio in Finland.
The Lime Zaim company is a technology-driven financial service provider from Russia and will offer returns up to 13% and 18% for its EUR and RUB loans respectively on the Mintos peer-to-peer lending marketplace.
Lime Zaim, part of the Lime Group, was established in 2013 in Russia and began issuing loans in the first quarter of 2014. Lime Zaim’s lending products assist under-banked consumers to expand their purchasing power and to manage their short-term cash flow needs. To achieve this, the company offers short-term loans and instalment loans to citizens of Russia completely online. Its proprietary machine-learning scoring algorithms combine standard credit history information with behavioural and demographic factors to provide it with a more accurate credit score. This allows the company to offer credit to borrowers passed over by traditional lenders.
“The Mintos marketplace offers an outstandingly flexible source of funds enabling us to smooth capital flows by exactly matching assets with liabilities and to further diversify our funding structure,” says Kevin Hurley, Vice President of Finance at Lime Capital Partners.
On Mintos, the average Russia-issued personal loan from Lime Zaim is around RUB 7 000, and the average EUR equivalent is EUR 100. The average repayment period is 28 days. You can expect a net annual return of up to 18% for its loans listed in RUB and up to 13% for its EUR loans.
All loans from Lime Zaim come with the buyback guarantee from its mother company, Laim Zaim Holdings Limited. This means, if a loan is delinquent for more than 60 days Laim Zaim Holdings Limited will repurchase the loan. The loan originator will also keep 10% skin in the game, to ensure its interests align with those of investors.
Since its founding in 2013 by Alexey Nefedov and Stanislav Sergushkin, Lime Zaim have scored hundreds of thousands of loan applications, issuing 393 000 loans to more than 100 000 customers.
Lime Zaim’s revenue for 2017 was around EUR 11.6 million and net profit for the same time period was around EUR 1.4 million. As at January 1, 2018 it had a net loan portfolio of more than EUR 2.3 million.
There are now even more investment opportunities in mortgage loans, as Spanish mortgage lender FIREOF Management (FIREOF) has just launched on the Mintos peer-to-peer lending marketplace. You can invest in its loans now and enjoy net returns of up to 8%.
Established in 2015, FIREOF is an asset secured lending business whose mission is to provide a financial bridge to Spanish consumers. FIREOF pursues a win-win relationship with their borrowers. The company is fully licensed and audited and it provides its credit products through established brokers.
FIREOF has a Special Purpose Vehicle (SPV) that will place its loans on Mintos, FIREOF DM. An SPV is a subsidiary company with an asset/liability structure and legal status that makes its obligations secure even if the parent company would experience financial difficulties. The SPV used for Mintos investors was incorporated in 2016, while the holding company has been operating in real estate lending since 2009. All loans and investments will be held by the FIREOF DM, while FIREOF will service the loans. FIREOF DM, the loan originator as a pure cashflow SPV, has no employees nor liabilities except from the assignments of Mintos investors and its own equity from its investors and shareholders. The SPV adds an extra layer of security for investors on Mintos.
“Our motivation is to democratise the mortgage financing business by offering the opportunity for small investors to access the biggest financial asset in the world. Currently, only large financial institutions can invest in this market, and they alone benefit from the fixed income secured by real estate collateral. We want to change this,” said FIREOF Managing Director Agustín Fernández Clemente.
The average Spain-issued mortgage loans from FIREOF on Mintos will be EUR 50 000 with a repayment period from one to five years, which will be paid in monthly instalments. The loan-to-value (LTV) ratio is not greater than 45%. The typical borrower is a middle class wealthy real estate owner with a need for short-term liquidity.
To keep its interests aligned with investors, FIREOF will maintain 15% of each loan placed on the marketplace. The loans will initially not be secured with a buyback guarantee.
As of June 30, 2018, FIREOF has an assets under management portfolio of EUR 25 million. The company has eight full-time highly qualified senior employees with a total experience of more than 100 years in the Spanish real estate lending business.
