Smava.de launched 3 years ago and successfully established p2p lending in Germany. Since then about 25 million Euro (approx. 34.4 million US$) loans were funded. SmavaÂ gained nearly all positive feedback by lenders, borrowers and especially the media.
Smava will need to continue growing considerably in order to become profitable. Currently growth is limited by borrower demand. On the lender side there is much capital waiting to be invested.
One issue Smava will have to tackle in the future are the default rates that distinctly exceed originally forecasted values. So far these have not been a threat to growth becauseÂ the ‘Anleger-Pools‘ mechanism, an insurance mechanism spreading losses resulting from defaults over many lenders, prevented major losses for single lenders. In the past years nearly all lenders achieved positive ROIs.
The P2P-Kredite blog has published a longer analysis today: ‘3 Jahre Smava Kredite – eine Bilanz‘ (in German).