What is Tarya about?
TARYA is the largest Israeli P2P lending platform built from the ground up, whose aim is to provide an online (24/7), financially beneficial experience for both borrowers and lenders. At the foundation of the platform is an advanced credit-scoring model relying on big data underwriting algorithms based on fraud prevention procedures
The platform founders have previously worked in both technology and regulation, and observing the state of the economic environment â€“ local and global events and trends, we sense that conditions are ripe for fresh, more beneficial financial offerings to be accepted by the general public.
TARYA is headed by experts in fraud prevention technology and regulation, and has become a major player in the Israeli Crowdfunding transformation in order to supply consumer credit without bias. We are tackling regulatory, business and cultural challenges and – being the leading company – are excited and satisfied of the progress made so far.
What are the three main advantages for investors?
Diversification, diversification and diversification. The key to successful investments in P2P is diversifying the investorâ€™s portfolio by offering:
- Automated Investing and Reinvesting â€“ the Investor defines risk and return preferences, while the platforms algorithm allows for a hands-free experience.
- Varied borrower types â€“ TARYA continues to develop partnerships with employers and social projects across the nation, thus providing both solid and risky borrowers, from different sectors of the Israeli economy.
- Low minimum participation amount in loans â€“ The minimum amount for investing in a loan starts at only 50 NIS (equivalent to 10 Euro).
What are the three main advantages for borrowers?
TARYA being an online financial service, provides borrowers an efficient and up-to-date approach for loan application:
- Transparency â€“ The process is performed online, without having to “wait-in-line” at the bank. Payments, interest rates and terms are presented up-front with an emphasis on “consumer protection”.
- A FinTech Experience â€“ TARYA is a unique and pioneering initiative that facilitates the direct connection between borrowers and lenders, using an online platform. This platform bypasses existing credit entities – banks and credit card companies, and allows borrowers to obtain credit at significantly lower costs. Interest rates range from 3.5%-8.0% depending on the borrower’s credit rank. Of note, non-banking (credit cards) interest rates for borrowers average 11%.
- Business Partnerships – TARYAâ€™s unique model grants upgraded loan terms for borrowers whose personal details are authenticated by their employers. This practice benefits all employees of the organization, who can receive loans at rates above their personal credit rating.
Lenders investing in diversified and micro-financed portfolios average between 5%-6% returns after fees. Lenders pay a fee of 1.0% on returns.
How did you start Tarya? Is the company funded with venture capital?
We believe the venture has the potential to change the structure of the credit market in Israel: It is widely accepted that the Israeli banking sector is concentrated and not competitive, especially in regard to the household and small businesses sectors. Since setting up shop in May 2014, TARYA has been growing in borrowers, lenders and partner organizations.
TARYA is funded by private equity. Since establishment, we’ve received several applications from VC and institutional investors.
Is the technical platform self-developed?
The platform is developed internally, built from the ground up with underwriting and credit rating processes that combine banking know-how, statistical modeling and technology professionals with extensive expertise in online fraud and information collection from social networks and other sources.
The diverse expertise of our team and the advanced technology is giving us a competitive advantage and will enable us to confront upcoming challenges head on. Continue reading