The first P2P lending platform in Lithuania, SAVY, is organizing their second annual P2P lending conference on the 23rd of March in Vilnius, Lithuania. Guest speakers from all over the world, including the co-founder of LendIt Conference Jason Jones and the leaders of the top Baltic P2P lending companies â€“ Mintos, Bondora and SAVY, amongst others, will engage in a number of panel discussions and presentations.
The conference will be focused on the possibilities of P2P lending and Crowdfunding, while the participants will touch some important topics related to the prospects, challenges and trends for Alternative Financing on a global scale and in the Baltic region specifically, as it offers a considerably higher return on investments than most Western European countries.
Live stream of conference starting at 13:30 GMT+2 on March, 23rd
*Sponsored post: This post was paid for by Savy.lt, the conference organizer. I rarely publish sponsored posts, but in this case I thought the content is a very interesting fit for the blog audience.
We have created what is best defined by the term â€œbankâ€. But our bank is virtual; it differs from a traditional one in that it is exempt from the requirement of capital sufficiency. Borrowers apply for loans and investors grant loans on our platform; it’s a meeting place.
In short, the SAVY P2P lending platform is a virtual bank that (will) operate in three segments:
Consumer credits, that is, personal loans;
Loans with real estate mortgage (for persons and businesses);
We have not yet offered business loans; however, we are planning to offer the service by the end of 2016. Our real estate product will be fully launched by the end of this year. Our secondary market appeared in early 2015.
A standard practice of global P2P lending platforms is that investors transfer funds to an account owned by the platform managers and the latter do the lending. We took a different path. The SAVY interpersonal borrowing platform does not manage the funds of investors directly. Each investor creates their own â€œpersonal walletâ€ in the Paysera e-money institution. They are then entitled to use their funds at their own discretion; for example, they can take their money out as soon as they need it without any intervention from SAVY. Even theoretical risks for investorsâ€™ money are eliminated under this structure. The platform reserves the right to evaluate the creditability of borrowers and allocate investorsâ€™ money to the borrowers. Other risks, such as funds being used for other purposes than intended by investors, are simply impossible on our platform. Paysera is an e-money institution. Investors can be confident as Paysera has 10 years of experience as an e-money license holder in the European Union. Its business in Lithuania is supervised by the Bank of Lithuania.
What are the three main advantages for investors?
Safe storage of money. The platform does not manage any investor funds. The funds are kept in dedicated e-accounts of each individual investor. In addition, investors are not charged a fee for investing their capital on the platform.
Experienced team. All members of our team and management are experts in their respective fields of business. This is very important in this new, dynamic industry.
Possibility to diversify risks. Traditional platforms offer only a single product for their investors. SAVY (will) offer the ability to invest across three different sectors and risk types on one intuitive system.
What are the three main advantages of SAVY platform for borrowers?
The SAVY platform is a new alternative for borrowers, something that has never before existed in Lithuania. This is a speedy and cost effective solution compared to expensive payday companies, banks and credit unions.
Our platform offers borrowing costs at a price similar to bank credit cards or even cheaper.
We guarantee a quick loan. Furthermore, we do not impose any fees on early repayment.
What ROI can investors expect?
Currently, the average return on investment is over 20 percent. Generally, our investors should plan a net return somewhere between 15 and 20 percent for the unsecured product loans. For the secured loan products such as real estate and business loans, they can expect slightly less. The expected return on investment for foreign investors on platforms from Central and Eastern Europe is, generally, much higher than the same metric found on Western European platforms.
What is the background of the SAVY team?
Our team is a collaboration of industry professionals, which is crucial to create an innovative and effective product in the financial sector. For example, our marketing manager is the former general manager of one of the largest Lithuanian consumer credit institutions. We have an internal lawyer with an MA degree in Law from a prestigious university in the UK, who is also a former employee of a private capital fund there. We have a banking professional on our board, well known in the Baltic region, and former CEO of SEB and Å iauliu Bank in Lithuania. An American professional in commercial real estate development is also on our team. […] Continue reading →