P2P lending news for October 2017

Halloween is already gone ! This means that October is over. It’s been a quiet month for P2P lending, so this edition of P2P lending news will be rather short !

Legal entities can now invest in DoFinance

By expanding range of services, p2p platform (P2P) DoFinance is now available for investments from legal entities as well.(DoFinance newsletter)

That’s great for companies who want to invest in P2P, especially if they can get the 14% loyalty bonus. The required portfolio amount is 5000€ so it shouldn’t be a concern for most firms !

Record interest rate for GEL loans at Mintos

“For a limited time only, one of the world’s leading fintech companies, ID Finance, will be offering on Mintos an increased interest rate of 17.5% for their loans issued in Georgia. This great offer was announced during our webinar on October 19, 2017.” (Mintos newsletter)

While the interest rate itself is extremely high for secured loans, please take into consideration the exchange rate of Georgian Lari (GEL) against your own currency ! I used to have a GEL portfolio and ended up closing it because of the exchange rate evolution.

Alternative Investments is mentioned in DoFinance’s newsletter !

DoFinance is the easiest way to invest in P2P loans, the review of DoFinance on Alternative Investments concludes.” (DoFinance newsletter)

I was very surprised and of course very happy to see my blog mentioned !

Russian loans in Swaper

“We are glad to announce that following Denmark and Spain, Russia is the latest expansion of operations from Swaper’s parent company Wandoo Finance. Russian loans listed on the platform come at the standard 12% rate, range from 3-6 months, are BuyBack guaranteed and are available from today.” (Swaper newsletter)

This may finally be the end of Swaper’s loan volume troubles. Congratulations to them for finally solving this long-lasting concern !

New issuer in Romania for Mintos

“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.” (Mintos newsletter)

Mintos continues attracting new issuers, contributing to make it one of the most diversified p2p lending platforms available !

New Swedish issuer for Mintos

“The average Sweden-issued loan that Aasa will place on the Mintos marketplace will range from EUR 1 000 to EUR 2 000, with an average repayment period of 6 to 36 months. The loan originator will initially offer to invest in euro (EUR). Loans denominated in Swedish krona (SEK) will be added to the Mintos marketplace soon. The average net return to investors will range from 7 to 11%.” (Mintos newsletter)

I actually missed this one when writing this post, so I updated it

Mintos removes secondary market fees

“Starting from today, November 1, 2017, we have removed the 1% fee for selling loans on the secondary market of the Mintos marketplace.” (Mintos blog)

I never used their secondary market but it’s always good news to see platforms reducing or removing fees.

 

P2P lending portfolio review for October 2017

Overview of the past 2 months

So, first, I have to apologize for the lack of posts. I had time to write new reviews (for Investly and CrowdEstate), but I’ve been lagging behind on portfolio reviews and other topics. This is due to a large change in my personal life, which took a long time to prepare… More on this soon !

I moved quite a lot of funds around, mostly withdrawing them from ViaInvest and Twino. I used most of them to create new portfolios on Investly and Finbee.

Current performance

Omaraha

12 months XIRR is currently 25.8%, which while being excellent is one percent lower than 2 months ago (26.8%). This is mostly due to many defaults in my Slovakian portfolio : they reached a very high level of 5.5%, while this rate is only 0.7% in Estonia ! As a result I stopped investing in this Slovakia in order to focus on Estonia. I may even decrease my Omaraha portfolio size a bit, as there is always a little bit of idle funds there. My portfolio size at Omaraha is around 57% of my total P2P assets; this percent decreased because I added more funds in other websites.

Bondora

XIRR for Bondora‘s portolio was 17.61%, down from 18.18%. I still didn’t test the “portfolio pro” feature but I really should do so in an attempt to boost my returns ! Bondora accounts for 18% of my overall portfolio, and I don’t plan to grow it.

Grupeer

All my recent investments there have been in loans offering a 14% interest rate, sometimes even 15% for loans from Russia. My XIRR should thus now exceed 14%. I increased my portfolio size there and may add even more funds later. Currently a bit more than 7% of my funds are invested at Grupeer.

Mintos

XIRR for Mintos was 12.19% for secured loans in Euro, stable from 2 months ago. I closed my GEL (Georgia Lari) portfolio; it was performing very well (16.75% interest rate) but the exchange rate variations cancelled most of these gains. I reinvested this amount in secured Euro loans, which now offer nearly 14% for long durations; that’s a great offer !

Swaper

XIRR of my Swaper portfolio was a bit higher than previously, at 12.06% against 11.77%. This is due to more loans being available, greatly reducing idle funds. It’s nice to see that Swaper finally has a large loans volume available !

ViaInvest

I closed out this portfolio. This was a bit painful to do as I had to trigger a manual buyback for each delayed loan !

Twino

Another portfolio reduced to zero. Many investor seem to be leaving this platform (see for example Kristi’s post) which is a bit concerning for their future.

Robo.cash

They don’t display an XIRR. My funds are invested in 14% loans, which is great, however there are often around 10-15% idle funds.

Other companies

My Monestro portfolio is still too young for me to publish returns, as are my Investly portfolio and my very new FinBee portfolio. Regarding real estate crowdfunding (CrowdEstate and BulkEstate), they’re long-term investments that will only pay interests once the project is completed, so I won’t post any performance results until next year at best !

XIRR evolution

P2P platforms returns for October 2017

Current allocation

The disappearance of Twino and ViaInvest is compensated by the creation of new portfolios. Overall the largest allocations (Omaraha and Bondora) decreased in percent, as I grew several smaller accounts (mostly Grupeer and Robo.Cash).

P2P allocation for October 2017

New platforms

As I mentioned, I opened accounts with Investly and Finbee. Reviewing Finbee will take a while as the platform is very rich. Luckily this doesn’t seem to come with a large complexity.

I actually have great expectations for FinBee; if this platform performs well I may move some funds from Omaraha there, in order to enhance my P2p portfolio diversification.

 

 

Website updates – 2017/10/08

New P2P lending websites reviews

I invested some funds in both BulkEstate and Robo.cash last month. The reviews are online, and the comparison page has been updated accordingly. The next review should be CrowdEstate, which looks rather promising !

P2P lending news for September

In case you missed it, I posted the monthly review of P2P lending news for the past month.

New article

I wrote a new article comparing P2P lending and mutual funds. It’s still a work in progress as there’s a lot to be said; for example, I don’t mention tax issues at all for now.

Misc changes

I updated Swaper review in order to reflect the (somehow) improved liquidity. I also improved Omaraha review in order to make it more helpful for people struggling with the very peculiar ergonomics of their website.

 

P2P lending news for September 2017

September is almost gone… Here are the news I gathered from various sources regarding the websites I use for P2P lending.

Swaper interface improvements

“We are planning to move towards combining Portfolio investment tool with Auto-Invest tool into one – Auto-Invest Portfolio. The improved feature will cater to both types of investors – those looking to specify their own criteria for investing and to those looking for a one-click investing experience without adjusting many details” (Swaper newletter)

That’s a welcome change, and will make their user interface even easier to use ! As of this writing, the change hasn’t been pushed in production yet.

Swaper auto-invest change

“Currently, when creating Auto-Invest schemes investors are able to specify ‘investment in one loan’, i.e. how much will be invested into a single available loan. This will be replaced with ‘max investment per loan’. (…) This change also means you do not need a lot of Auto-Invests to ensure your money gets invested. With one active Auto-Invest your money is just as likely to be invested as with ten (assuming same selection criteria).” (Swaper newletter)

Yet another important improvement. With the improved loan volume, will this be the end of the troubles with Swaper ? Time will tell !

Swaper loyalty bonus changes

“We have rolled out the planned changes to our Loyalty Bonus. As announced last month, to obtain the +2% bonus to your investments your account value needs to be 5000 EUR (or equivalent in GBP or PLN) or higher for three consecutive months. Similarly, if your total account value drops below 5000 EUR (due to withdrawals) for three consecutive months the bonus is revoked.” (Swaper newletter)

New Bondora feature : “Remove loans from sale when borrowers make payments”

“This week we introduced a new feature which allows you to remove your investments from sales when a borrower makes a payment. (…) Once you activate the feature, you can be confident that you’re selling loans on the assumption of up-to-date payment information. If any payment is made, the loan will automatically be re-evaluated and cancelled from the Secondary Market sales.” (Bondora blog)

New Russian originator for Twino

“We have increased the Russian loan supply by adding our second originator. Already more than EUR 1.5 million have been funded during this time.” (Twino newsletter)

Note that this actually took place in August but was only announced in September

New issuer in Bulgaria for Mintos

“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%.” (Mintos newsletter)

It’s time to update your auto-invest yet again 🙂

 

Week-end website updates

I hope you all enjoyed the week-end (a long week-end for those in the USA, lucky you !)

For me it was a studious week-end, as I spent a lot of time working on this blog. Here are the resulting changes :

P2P lending

I published several articles and posts :

  • the P2P lending news for August
  • the review of my P2P portfolio for the past month
  • a detailed review of DoFinance, which has a rather innovative offer, making investing in P2P loans an extra-easy experience
  • a comparison of the current P2P lending offers, with a handy table summing up the current offers and conditions. Give it a try !

I also updated the articles about ViaInvest and Grupeer to reflect the changes since I wrote them.

Collective2

I didn’t yet publish anything new since the introduction to the new dashboard, as I’m in the process of updating the existing articles. Indeed, there has been a price change in their auto-trading offers, and it left me extremely unsatisfied !

 

P2P lending news for August 2017

Yet another month is over… I updated ViaInvest review in order to reflect the lowered interest rate currently offered.

Here are the news I gathered regarding P2P lending :

More Russian loans for Twino

“We are excited to announce that starting from this week you will see a significant boost in our Russian loan volumes. (…) These are short-term loans with maturity of 1 – 2 months, BuyBack Guarantee and interest rate of 10-11% per annum.” (Twino newsletter)

More loans for Swaper (finally !)

 “Demand for investments on our platform has for some time now been higher than the amount of loans available. We recognize that this leads to cases where some investors are left with money sitting idle on their Swaper accounts. Currently, we are putting around 2 million euros worth of new loans up for investment every month, which is about a 100% increase from where we were at the beginning of the year.” (Swaper newsletter)

Mintos adds loan in Romania and Bulgaria

The following excerpt is valid for both countries :
“The new loans Mogo will place on the Mintos marketplace will range from EUR 500 to EUR 10 000, with a repayment period of up to 72 months. The average net annual return to investors will range from 8 to 14%. Loans with and without the buyback guarantee will be offered.” (Mintos newsletter)

New originator in Latvia for Mintos

“The Mintos marketplace now features consumer loans issued in Latvia by MoneyMetro. (…) MoneyMetro loans placed on the Mintos marketplace will average EUR 400 and have a repayment term of 12 months. The annual net return to investors is expected to reach 11.5%. The loans will be supplemented with a buyback guarantee covering loans delinquent for more than 60 days.” (Mintos newsletter)

African loans in Mintos

“The average Botswana-issued loan GetBucks will place on the Mintos marketplace is EUR 250, with a repayment period of 30 days. The average annual net return to investors will reach 11%. GetBucks will provide a buyback guarantee for loans that are delinquent for more than 60 days” (Mintos newsletter)

Russian loans on Grupeer

“Each loan is issued based on a separate agreement for a period of 2 to 3 months. Loan currency is euro. The interest rate offered to investors is 15% per annum.(…) To secure your investments, Grupeer Platform has applied the following measures: BuyBack guarantee in case of payments delay for more than 15 days.” (Grupeer newsletter)

Grupeer : 1.5% cashback  on development loan

I found out that new investments in the currently listed development loan, offering 13% interest rate, will get 1.5% cashback. This offer is good until September 30th, 2017. (Grupeer website)

New Georgian originator for Mintos

“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. (…) 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%.” (Mintos newsletter)

New originator for Mintos in Czech Republic

“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.” (Mintos newsletter)

 

First steps with Monestro and DoFinance

I just invested some funds through two P2P lending companies, Monestro and DoFinance. I already had a DoFinance account but never funded it, while my Monestro registration is new. It’s obviously too early for me to write a full review, however I’ll give you my feedback on these two offers !

Monestro

I recently registered with Monestro; it’s an Estonian P2P lending company focusing on loans to individuals.

Registration

I found the registration process to be a bit painful. The website is not very user-friendly, and you’ll need a webcam to take a live screenshot of you and your passport. Other than that, my registration was quickly processed and I could fund my account the next day.

Investing process

There are currently few loans available at Monestro, commonly less than five. They’re usually live for less than a week, so you’ll find new loans several times a week.

Just like Omaraha, the investing process is a bit complicated at first. There’s a credit score for each application (the lower the score, the better), and you have to bid during an auction process.

You’ll have to choose to amount to bid, and, depending on the auction kind, the interest rate. Indeed, there are either “fast auctions” where you only bid for size, and “terminal auction” where you compete for both size and interest rate. Terminal auctions last for a specific duration (usually a few days), then get resolved. Fast auctions, on the other hand, may be closed earlier if the maximum amount specified by the borrower is met.

The auction kind is displayed for each loan application in the “Load and auction data” tab. For detailed information about auctions kinds, you may check Monestro FAQ (especially this topic and this one)

Here’s a screenshot showing the two current loan applications.

Monestro loan applications (overview)

Once expanded, you can see the details for each loan

Monestro loan applications (detailed)

Loans are not secured by a buyback option; the credit score computed by Monestro is supposed to reflect how risky the loan is.

Note that signing the loan agreement will require to receive SMS, as the website will provide you with a confirmation code.

Conclusion

Monestro really feels like Omaraha to me; it provides the same loans profiles, and the interface is just as painful. However, the loans volume at Monestro really can’t compare with Omaraha for now.

DoFinance

DoFinance is located in Latvia, and is part of Alfa Finance Group. It mostly focuses on short-term loans.

Registration

The website is easy to use and registration is quick and easy. Compared to Monestro, it’s a much more pleasant experience !

Investing process

Just like registering, investing with DoFinance is incredibly easier; however, this is mostly due to the lack of options and flexibility.

In its most basic form (auto-investing), you just choose an investment duration and the target return.

DoFinance plans

In theory it’s also possible to invest manually, but this option actually shows you many pages of loans without even an opportunity to filter them out, so it seems pretty useless.

It’s possible to withdraw your money before the investment term, but it you choose to invest your money for 6 months or more, you won’t get any interest and the reimbursement will take 28 days. You thus should make sure that you won’t need the invested money !

One large difference with other P2P offers is that the interests are only credited at the end of the investment term. That means you won’t get monthly interests !

Conclusion

DoFinance seems to be a nice choice for those who want a hassle-free investing experience. Choose the desired duration and interest rate, and forget about it for the whole length of your investment term !

 

P2P lending portfolio review for July, 2017

Month overview

Unlike my Collective2 portfolio, my P2P lending portfolio’s life was rather uneventful this month (and I don’t complain about it 🙂 ).

I added some more funds to Omaraha and I’m nearly reaching my target portfolio size. I still have to decrease ViaInvest size, but I’m waiting for the principal to be reimbursed.

Current performance

Omaraha

XIRR at the end of July was 27.6%. Details by country are : Estonia 27.5%, Slovakia 30.7%, Finland 34.9% (very new and small).

I’m starting to see more defaults, but currently their rate (0.7%) mirrors the overall default rate for comparable loans.

I’m still planning to increase my portfolio size a bit, although I have troubles investing it all with a relatively small loan size (20€). I also probably should spend some time studying my statistics by country more closely (XIRR versus default rate) in order to have a better allocation between Estonia and Slovakia. Unfortunately Omaraha doesn’t provide the statistics as CSV files, so it will be a painful task !

Bondora

XIRR for Bondora‘s portolio was 18.07%. I invested a lot in poorly-rated loans with high interest and of course many defaulted, so I’m curious to see what the recovery rates will be like.

I may start playing with the “Portfolio pro” feature in order to increase my returns.

Grupeer

Grupeer doesn’t provide a XIRR computation but all my loans offer 13% or 14% interest rates.

Mintos

XIRR for Mintos was 12.18% for secured loans in Euro and 16.76% for Lari (Georgia). Unfortunately for now, the poor exchange rate totally negates this XIRR difference.

Swaper

XIRR of my Swaper portfolio was 11.84%. I’d love to increase my portfolio size a bit, but until recently this P2P lending site had troubles investing the whole amount, so I’m not totally sure about this.

ViaInvest

XIRR reached 12.74%, which is surprisingly high. However, it looks like all new loans only offer a 10% interest rate. I may thus decrease my portfolio size even more and split this money between Grupeer and Swaper.

Twino

XIRR is 10.23%; I’m in the process of moving all my funds out of Twino as the low returns doesn’t justify keeping an account there.

Current allocation

I’m probably over-invested in Omaraha, but paradoxically I’m still planning to increase its portfolio size a bit.

Once I reach my target size, my Grupeer portfolio should be my next target for growth.

Current allocation between P2P lending websites

New platforms

I’m always looking for new opportunities to diversify my portfolio.

After some due diligence, I may invest a starting amount in Monestro. Loans volume is low and the usability is, let’s say, perfectible, but it seems promising.

 

 

July P2P lending news

This monthly column will try to sum up the important news related to P2P lending, mostly regarding companies I use for investing.

Usually my primary source of information is the company’s blog or newsletter. This monthly post aims at being a quick read, so I’ll provide a link and a relevant excerpt.

Bondora is profitable

“We are proud to announce that we have reached profitability in the first half of 2017 with the net profit of €300 000. ”

Omaraha caps Estonian loan’s max interest rate

“Estonian loans maximum total interest is now 35%, please make changes to your investment terms. Higher % investment terms wont invest.”

Bondora introduces “Portfolio pro” feature

“Simply put, it is a tool for people who like to have more control over the level of diversification in their investments. You can now use this Pro feature to create a portfolio according to your own rules. For example, you may choose to select loans from specific countries, with different duration and Bondora risk ratings.”

Note for self : review this for a future post !

Bondora (again !) removes fees for direct sell

“Just over a two months ago we released our Direct Sell feature, allowing investors to sell loans directly to other investors from their Investments page. (…) Previously there was a fee associated with all Direct Sell. By removing this cost to investors we’re making it easier than ever to explore the full range of options when investing on Bondora.”

Twino enhances auto-invest usability

“If you are using Portfolio Builder, then on the right side of the page you will see the following information: 1) Available Cash, 2) How many loans match your criteria, 3) How much funds can be invested immediately.

However, if you are creating an Auto-invest portfolio, then on the right side of the page you will see your available cash and two completely new fields: 1) Available Cash, 2) Listed in last 30 days – this value will display how many loans with similar criteria have been listed during the last 30 days, 3) Competing portfolios – this value will display how many Auto-invests with similar criteria have been created by other investors.” (Twino newsletter)

New originator for Twino

“Kazakhstan’s loan originator has joined TWINO investment platform.” (Twino newsletter)