Polish P2P Lending Site Monetto Goes Under

In e-mail newsletter sent to its users on January 20th the operator of Polish peer-to-peer lending site Monetto.pl informed that the website will be accessible only until the end of February. Lenders are urged to update the loan contracts and to change the number of bank account set up for repayments. Monetto will no longer intermediate in processing repayments and loans should be repaid to lenders’ accounts directly.

Monetto was one of the early entrants to Polish social lending market. The company was financially backed by venture capital fund IIF. From the beginning the market was plagued by the influx of unfair borrowers, partly due to the insufficient verification procedures. Lukasz Banach, CEO of Prender Ltd. – the company behind Monetto project, reflected in the interview for finnovation.pl in September 2009, that what attracted crooks might be higher (than on other P2P lending markets in Poland) initial limit of loan amount. He also said: “In USA, UK (also Germany) there are central, accessible and trustworthy databases of credit history. As long as there is no such thing in Poland, I don’t believe that social lending will be successful here. When this barrier is removed, the percentage of bad debts on P2P markets will fall down significantly. ”

Things started to get worse in the end of 2008, when VC investor decided to stop financing the project. Since January of 2009 Monetto was in “coma” – there were no new loan listings, repayments were forwarded to lenders infrequently and there were significant problems with customer service. The investors made an effort to sell the service (although it was never announced officially) but no interested buyer was found.

The announcement is viewed by many as the last act of the drama which lasted far too long. In few articles that were published in press, the negative consequences for the credibility of social lending model in Poland are stressed. In other opinions there is a little bit of optimistic tone – failure of Monetto shows that market weeds out the weaker and less secure players.

P2P lending companies by loan volume – Jan 09

P2P lending is spreading internationally. While the biggest loan volumes are generated in the US market, many p2p lending websites have been established in other international markets.

P2P-Banking.com has created the following overview table listing services that are in operation and ranked them by loan volume. The loan volumes are not directly comparable for they are cumulative since launch of each service and represent different time spans.

In total approx. 740 million US$ have been funded through peer to peer lending/social lending services so far worldwide.


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Source: P2P-Banking.com

Since the previous version of this table especially Zopa (UK), Lending Club and Kiva thrived. With Prosper, Loanio and Fynanz halted, Lending Club profits from the situation.


This image may be reprinted under the same conditions as the first one.

P2P lending companies by loan volume

P2P lending is spreading internationally. While the biggest loan volumes are generated in the US market, many p2p lending websites have been established in other international markets.

The services can be divided in three categories:

  1. p2p lending marketplaces (e.g. Prosper, Zopa, Lending Club, Smava) – participants driven mainly by economic motives
  2. social lending services enabling micro financing (e.g. Kiva, MyC4) – participants driven mainly by social motives
  3. other concepts (e.g. Virginmoney which is special in the way that it does not do the matchmaking between borrowers and lenders, but supports the process between persons that already had offline relations- slogan “We manage loans between family and friends“)

Sites funding student loans can fall into any of these three categories or combine motivations.

P2P-Banking.com has created the following overview table listing services that are in operation and ranked them by loan volume. The loan volumes are not directly comparable for they are cumulative since launch of each service and represent different time spans.

Asked for a figure, a Microplace spokesman pointed out “…it is important to note that MicroPlace is not a P2P site.  We are a platform that offers investments to the retail public.“. No loan volume was quoted, but he stated “investments purchased on our site have enabled over 26,000 microfinance loans.

In total approx. 685 million US$ have been funded through peer to peer lending/social lending services so far worldwide.

This image may be reprinted on other internet sites, provided it is not altered or resized and the following text (including the direct link to this article) is given as source directly below the image:
Source: P2P-banking.com

If you are a representative of a p2p lending service and want your service to be included in the next update of this table, please send me an email with information about your company.

Poland: Monetto has financed 1 million Zloty loans in 4 months

Monetto.pl, one of the three p2p lending services active in Poland has financed 1450 loans applications resulting in 440 loans totaling 1 million Zloty (approx 0.5 million US$) in 4 months. The average loan amount is 2300 Zloty. The service claims 8000 registered users and a repayment rate of 97% so far (which is said to be a good result).

Borrowers are usually aged 35 to 50, and live in rural areas or small cities. Lenders on the other hand are typically aged 25 to 30 and live in the major cities.

Monetto plans to introduce new features, including guarantees for lenders.

Lucas Banach, CEO of Prender the company that runs Monetto, says that cooperations with e-commerce sites (e.g. Kupujemy.pl) are essential for the growth of Monetto.pl.

Competitor Kokos.pl claims 13000 registered users and 1.2 million Zloty loans on its website. Kokos launched 5 months ago.

(Sources 1, 2, 3, 4, 5, 6)

Three p2p lending players competing in Poland

In Poland there will be three p2p lending services competing for borrowers and lenders:

The services are positioned quite differently, with different minimum loan sizes ranging from 500 PLN (approx 200 US$) to 3,000 PLN. Furthermore Finansowo appearantly will not do any credit score checking and "will not touch the money", so apparently payments need to be conducted directly between borrower and lender. 

All sites target a young audience aged 22 to 34 and think that Polish customers are open to new ideas.

(Source: Virtuous cycle)