New Mintos Notes Product Will Launch on May 25th

mintos logoThe long announced and several times postponed Mintos Notes product will finally launch on May 25th, Mintos* said yesterday. The notes are financial instruments and issued under the new investment firm license Mintos received last year. For each loan originator there will be a seperate prospectus (see example). Mintos mentions safeguarding of investor funds and notes under MIFID II requirements and increased transparency as investor benefits.

mintos transition

Until 30 June, investors can buy and sell investments via claims on the Secondary Market as usual. Then, from 1 July onwards, investors will be able to buy and sell Notes only, as a result of regulatory requirements.

The transition will mean two key changes for investors:

  • As the claims cannot be traded from July 1st onwards on the secondary market, investors will have to hold any claims in their portfolio to maturity
  • Mintos is required to deduct withholding tax depending on the investors country of tax residency and applicable double taxation treaties

My take

The transition will mean a major change for the marketplace that could either stiffle or empower Mintos growth. I expect that many investors will shy away from investing in very long term claims on the primary market in the remaining 7 weeks. Also buyer demand on the secondary market will likely decrease for the claims on long term loans. Potentially this will lead to offers with rising discounts before the trading of claims ends on June 30th.

There is some hesitation voiced among investors regarding the upcoming notes due to the withholding tax and surronding paperwork to claim possible reliefs and reductions (Mintos has announced that it will publish more information on the details). Mintos might try to offer some incentives in order for investors to take the leap and embrace the new product. I also imagine that Mintos will step up investor marketing again, once the notes product has launched. Already Mintos is taking a lot of effort to communicate and explain the coming changes via blog articles and newsletters.

This disruption might also increase the trend of loan originators setting up their own, unregulated investor marketplaces in other jurisdictions than Latvia.

 

International P2P Lending Volumes April 2022

The table lists the loan originations of p2p lending marketplaces for last month. Mintos* leads ahead of Peerberry* and Lendermarket*. The total volume for the reported companies in the table adds up to 311 million Euro. I track the development of p2p lending volumes for many markets. Since I already have most of the data on file, I can publish statistics on the monthly loan originations for selected p2p lending platforms.

The following milestones were crossed this month:

  • Investly* originated more than 100M EUR since inception
  • Lendermarket* reached more 250M EUR loan volume since launch

Investors living in national markets with no or limited selection of local p2p lending services can check this list of international investing on p2p lending services. Investors can also explore how to make use of current p2p lending cashback offers available. UK investors can compare IFISA rates.

p2p lending statistics april 2022
Table: P2P Lending Volumes in April 2022. Source: own research
Note that volumes have been converted from local currency to Euro for the purpose of comparison. Some figures are estimates/approximations.

Links to the platforms listed in the table: Ablrate*, Archover*, Assetz Capital*, Bondora*, Bulkestate*, Credit.fr*, Crowdproperty*, Debitum Network*, Dofinance*, Esketit*, Estateguru*, Finansowo*, Finbee*, Folk2Folk*, Geldvoorelkaar*, Heavyfinance*, Investly*, Iuvo Group*, Kuflink*, Kviku.Finance*, Landlordinvest*, Lendermarket*, Linked Finance*, Mintos*, October*, Peerberry*, Proplend*, Reinvest24*, Robocash*, Soisy*, Swaper*, Twino*, Viainvest*.

Notice to p2p lending services not listed: Continue reading