International P2P Lending Volumes March 2019

The table lists the loan originations of p2p lending marketplaces for last month. Mintos leads ahead of Zopa and Ratesetter. The total volume for the reported marketplaces in the table adds up to 582 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.

Milestones achieved this month (total 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 volume statistic March 2019
Table: P2P Lending Volumes in March 2019. Source: own research

Note that volumes have been converted from local currency to Euro for the purpose of comparison. Some figures are estimates/approximations.

Notice to p2p lending services not listed: Continue reading

International P2P Lending Volumes February 2019

The table lists the loan originations of p2p lending marketplaces for last month. Mintos leads ahead of Zopa and Ratesetter. The total volume for the reported marketplaces in the table adds up to 531 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.

This month I added Bondster (use Bondster Promotion Code 5506 to get 1% cashback).

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 Volumes 02/2019
Table: P2P Lending Volumes in February 2019. Source: own research

Note that volumes have been converted from local currency to Euro for the purpose of comparison. Some figures are estimates/approximations.

Notice to p2p lending services not listed: Continue reading

Why has the FCA Refused the Application of Mintos and has the Decision any Consequences?

The FCA, the Financial Conduct Authority, is the supervising regulatory body for p2p lending platforms in the UK. In Dec. 2018 it refused the application of Mintos or more precise of a separate legal entity within the Mintos group, established for operations within the UK.

The full notice of the FCA decision can be read here. Below I outline some of the aspects. I also reached out to the Mintos CEO, who kindly answered my questions on this matter.

Before we go into the details, I want to make it clear, that the FCA decision has no direct impact on the current operation of  Mintos platform, which is headquartered in Latvia.

Mintos Marketplace Limited applied for permission to conduct a specific regulated activity (“permission to operate an electronic system in relation to lending (Article 36H RAO)”).

Reading the FCA decision there are several points that led to the refusal:

a) the applying company does not currently meet the minimal funding requirements of 50K GBP as specified by the rules (paragraphs 49-50 of the notice)

b) the head office of the applying company is not currently in the UK (51-53)

c) the FCA has doubts that the Mintos business model will be adapted adaquately to comply with the UK regulation rules (paragraphs 29-33, 35-38, 40)

d) the FCA find Mintos wind-down plans are not specific enough (41-44)

e) the FCA is not satisfied with Mintos’ understanding of the UK rules (46-48)

The decision is interesting to read. Naturally it judges Mintos solely by the formal compliance regarding the UK rulebook. Any other non-UK marketplaces seeking FCA approval can certainly learn some things from this declined application. As I stated above, it does not have any consequences for the current operation of the Mintos marketplace. It only affects any potential plans Mintos had for the UK market.

That gets us to the more interesting point: why did Mintos strive to get FCA approval still in 2018 despite Brexit? I asked Martins Sulte, CEO of Mintos, and here are his answers:

1) What was the intention of Mintos to set up the seperate UK entity and apply for permission at the FCA. Was this related to offering IFISA products and possible tax advantages for UK investors?

The intention is to connect to our marketplace loan originators originating loans in GBP in the UK and offering those loans to investors from the UK. We believe that the UK can become a self-sustaining marketplace where local investors are able to fund loans originated locally in the UK.

2) Considering that the application was pursued still as recent as July 2018 (point 29), this is an interesting move in light of Brexit, with several UK fintechs going the other direction to secure a continued presence in the EU. Any comment?

We view the UK market as a separate market that has the UK specific regulatory environment when it comes to crowdlending. Our intention is to create a largely self-sustaining UK marketplace that serves both UK loan originators and UK investors. In that light uncertainty caused by Brexit plays less of a role. It is important to note that each and every country has their own approach to regulating crowdlending, which means that for instance having the FCA permissions for working in the UK would not really affect our operations in other countries, even in EU. Only when the European Commission’s proposal for a regulation on European crowdfunding services providers come into place we might see that licenses are passportable across the EU and then in that light, the Brexit certainly would more of a consideration. For now, we have to look at each country separately.

3) Is the announcement of the application for an e-money license a reaction to the upcoming decision by the FCA?

No. E-money licence and UK permissions are very different licenses.

4) Do you think that any of the assessments the FCA made, will be relevant for the Latvian regulator once the Latvian regulation is finalized?

I don’t think so. Each country has its own approach. The UK has a rather specific approach. When we talk about Latvian regulation we also have to take into account that it will cover only investors and loan originators in Latvia. Once the Latvian regulation is finalized we will still have to look at each country separately. Us having a necessary license in Latvia will play a little role when considering our operations in, for example, Mexico, South East Asia or Russia, or even in other countries of EU.

 

Martins added: ‘This was a formal Financial Conduct Authority (FCA) decision on Mintos’ application for operating in the United Kingdom submitted by the Mintos Marketplace Ltd (a separate legal entity within Mintos group that was established for operations in the UK). The application was submitted almost two years ago. In these two years, our business model has evolved, our team has expanded significantly and we have gained major business results on a European and global level that defined our position as a leader in the market of investments in loans. The application for necessary permissions to operate in the UK doesn’t affect our daily business and the future development of Mintos, and the rejection of the application is nothing that can, nor will, affect our business operations in other countries.

The UK has different and specific legislation, and the FCA notice serves us as valuable feedback for adjusting our processes and procedures to fit the UK specificities. At the moment, we are in no rush when it comes to entering the UK market, as we are all aware of the many uncertainties regarding the Brexit issue. Anyway, our growth and expansion goals are unwavering, and entering the UK market will remain in the scope of our interest. We will continue working with our legal and regulatory advisors and will take into account the FCA’s feedback when considering our next steps with respect to the UK.’

International P2P Lending Volumes January 2019

The table lists the loan originations of p2p lending marketplaces for last month. Mintos leads ahead of Zopa and Ratesetter. The total volume for the reported marketplaces in the table adds up to 581 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.

Milestones achieved this month (total 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 Statistic January 2019
Table: P2P Lending Volumes in January 2019. Source: own research

EDIT: Correction- I reported a wrong number for January for Swaper in the table above. The correct figure is 2.6M EUR.

Note that volumes have been converted from local currency to Euro for the purpose of comparison. Some figures are estimates/approximations.

Notice to p2p lending services not listed: Continue reading

International P2P Lending Volumes December 2018

The table lists the loan originations of p2p lending marketplaces for last month. Mintos leads ahead of Zopa and Ratesetter. The total volume for the reported marketplaces in the table adds up to 445 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.

Milestones achieved this month (total 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.


Table: P2P Lending Volumes in December 2018. Source: own research

Note that volumes have been converted from local currency to Euro for the purpose of comparison. Some figures are estimates/approximations.

Notice to p2p lending services not listed: Continue reading

International P2P Lending Volumes November 2018

The table lists the loan originations of p2p lending marketplaces for last month. Mintos leads ahead of Zopa and Ratesetter. The total volume for the reported marketplaces in the table adds up to 473 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. This month I added Debitum Network.
I removed Unilend, as the platform has closed and the company has gone into receivership.

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 November 2018
Table: P2P Lending Volumes in November 2018. Source: own research

Note that volumes have been converted from local currency to Euro for the purpose of comparison. Some figures are estimates/approximations.

EDIT: The volume for Swaper was 2.0M EUR.

Notice to p2p lending services not listed: Continue reading

International P2P Lending Volumes October 2018

The table lists the loan originations of p2p lending marketplaces for last month. Zopa leads ahead of Mintos and Ratesetter. The total volume for the reported marketplaces in the table adds up to 481 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. This month I added Crowdproperty.

Dofinance crossed 50M EUR total volume lent 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 Statistic October 2018
Table: P2P Lending Volumes in October 2018. Source: own research

Note that volumes have been converted from local currency to Euro for the purpose of comparison. Some figures are estimates/approximations.

Notice to p2p lending services not listed: Continue reading

UK Property Platform Kuflink Opens To Investors in Europe (100 GBP Cashback)

British p2p property platform Kuflink has been in operation since 2016.  Previously accepting only UK residents as investors, the platform announced that they have enhanced their KYC/AML procedures and are now open to investors from anywhere in Europe. Interested investors can use a free UK bank account from Transferwise Borderless or Revolut (Smartphone required). And in exchanging money to GBP new TransferGo clients can get a 10 GBP bonus when exchanging/sending at least 150 GBP.

Kuflink offers short term property loans (usually 3 to 12 month), secured by a legal charge. They run a very generous 100 GBP cashback offer available by signing up through this this link. Note that the landing page says 50 GBP, but I have negotiated with Kuflink that clients referred by P2P-Banking get 100 GBP (doubling normal cashback). VERY IMPORTANT: Read T&C and strictly follow them. E.g. the minimum investment of 500 GBP must be reached within 24 hours of first investment. While it is possible to spread your investment over several loans, be sure that you are in line with the T&C terms.
You can find more cashback deals on this page.

Kuflink loans
Screenshot: Available Kuflink loans (selection).

Every loan offer comes with detailed information, including a valuation report. Since the start in 2016, Kuflink has originated more than 20 million GBP in loan volume.

Kuflink does not charge investors any fees. Interest is paid on the first day of each month (for manual investing). There is an autoinvest option, but conditions are less interesting than on manual investing. Two features Kuflink lacks are a secondary market and a detailed statistic page (there is some information in the FAQ).

In April I published an interview with the Kuflink CEO.

 

 

International P2P Lending Volumes September 2018

The table lists the loan originations of p2p lending marketplaces for last month. Mintos leads ahead of Zopa and Ratesetter. The total volume for the reported marketplaces in the table adds up to 410 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. This month I added Colectual and Landlordinvest.

Milestones achieved this month (total volume since launch):

  • Folk2Folk crossed 250M GBP
  • Loanbook Capital crossed 50M EUR

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.

Edit Oct. 4th: Today an updated version of the table was published.

P2P Lending Stats September 2018
Table: P2P Lending Volumes in September 2018. Source: own research

Note that volumes have been converted from local currency to Euro for the purpose of comparison. Some figures are estimates/approximations.

Notice to p2p lending services not listed: Continue reading

How to Invest Into Equity of P2P Lending Marketplaces

One of the main developments in UK p2p lending this autumn is the IPO (initial public offering) of Funding Circle. It will be open for investors that commit at least £1,000 through an intermediary (see list of participating intermediaries). Investing at the IPO means investors will invest at a very late stage of the growth phase of a startup. This article and this article suggest that it might not be a good idea to invest in an IPO.

But is there really a chance to invest into equity of a p2p lending marketplace at an early stage, if you are not an employee, business angel or VC? Up to a few years ago the answer would have been NO. But crowdfunding for equity came into use a recently and a surprising number of p2p lending companies have used this route to raise funding.

In this article I will look at the p2p lending services that have used British equity crowdfunding platform Seedrs to raise money. Some of these p2p lending company funding rounds have taken place years ago, but the interesting point is that Seedrs has a secondary market and new investors can buy shares from existing investors that invested earlier through Seedrs. The secondary market opens every first Tuesday of a month (next on Oct. 2nd) and stays open for a week. Some of the shares on offer are in high demand and often sell out within an hour. If you’d like to buy on the secondary market you should open your Seedrs account now, as you’ll need time to verify it and deposit funds prior to the market opening.

P2P Lending Startups that raised funding rounds through Seedrs

Assetz logoAssetz Capital
Assetz Capital is a UK platform for SME loans. Assetz raised two rounds on Seedrs for an aggregate of 5.3 million GBP. The last round was in October 2017 at a pre-money valuation of 50M GBP. Shares of Assetz capital are usually in high demand on the Seedrs secondary market.

Brickowner logoBrickowner
Brickowner is a UK property investment platform. Brickowner raised four rounds for an aggregate of 0.4 million GBP. The last round was a converible in March 2018. The pre-money valuation in Nov. 2017 was 2.5M GBP. There is usually some availability of Brickowner shares on the secondary market.

Crowdlords
Crowdlords is UK property crowdfunding platform. Crowdlords raised one round for 0.2M GBP in Nov. 2014. The current pre-emption round is at a pre-money valuation of 3.2M GBP. There is usually limited availability of Crowdlords shares on the secondary market.

Crowdstacker
Crowdstaecker is a UK platform for SME loans. Crowdstacker is running a round right now for 0.8 million GBP at a pre-money valuation of 19.5M GBP.

Crowdproperty logoCrowdproperty
Crowdproperty is a UK platform for property development finance. Crowdproperty raised 0.9M GBP at a pre-money valuation of 5.9M GBP in November 2017. There is usually some availability of Crowdproperty shares on the secondary market.

Flender logoFlender
Flender runs a platform for Irish SME loans. Flender raised on Seedrs round of 0.5M GBP at a pre-money valuation of 4.5M GBP in January 2017. Supply of Flender shares on the secondary market is scarce.

Investly logoInvestly
Investly is a platform for invoice financing operating in the UK and Estonia. Investly raised on Seedrs round of 0.7M GBP at a pre-money valuation of 6.6M GBP in March 2018. Investly shares have been in high demand on the secondary market.

Landbay logoLandbay
Landbay is a UK platform for buy-to-let mortage lending. Landbay did multiple Seedrs rounds from 2013 till 2018. The last round was in March 2018 at a pre-money valuation of 28.9M GBP. There is usually good availability of Landbay shares on the secondary market.

Orca logoOrca Money
Orca is an aggregator for UK p2p lending investments. Orca is running a round right now for 0.5M GBP at a pre-money valuation of 1.8M GBP.

Welendus logoWelendus
Welendus is a UK platform for short-term loans. Welendus raised 1.3M GBP GBP through 3 Seedrs campaigns including the currently running round at a pre-money vaulation of 6.0M GBP.

There are shares of mulitple other interesting fintechs available on the Seedrs secondary market, including Commuter Club which has an interesting connection to p2p lending: The loans for the transport tickets were financed first by Ratesetter lenders and now by Zopa lenders. There is usually good availability of Commuter Club shares on the secondary market.

P2P-Banking has a pre-launch notification service for upcoming new Seedrs campaigns. Sign up and you get a head start on new campaigns which might potentially include Assetz Exchange, a new Brickowner round and p2p lending startup Neo Finance.

Summing up: While there are other sources for shares in p2p lending companies, Seedrs is a good place to start looking.

This article is not an investment advice. Investing in startups bears significant risks, including total loss of investment.