European peer-to-peer lender Bondora reports that originations on their platform keep on rolling in 2021.
Last month, originations on the Bondora platform totaled €11,036,285—which represents a 5.9% growth rate when compared to figures from May of this year. This is reportedly the sixth straight month that Bondora originations have continued to rise. This steady growth is consistent with the firm’s vision for the future, “on the road to 1 billion.”
The P2P lender also mentioned that the share of originations by country did not change too much over the past month. Estonian originations accounted for “69.4% of originations, while Finnish loans had a 30.6% share,” the report revealed while adding that the interest rates for both countries “were also similar, although slightly lower on the month; Estonia came in at 25.7%, and Finnish loans at 19.1%.”
Estonian originations added new rating categories last month. For the first time in about a year, AA and A-rated originations “were made on the month, which came to €537,701 and €805,481 respectively,” the report noted while pointing out that these additions “reduced the percent share of Estonian originations for the remaining rating categories.” Another thing to note is that C-rated originations “almost equaled B-rated originations, both with a 17.2% share of all originations this month,” the update confirmed.
It also mentioned that Finnish originations “continued with D-rated loans, which equaled €3,152,306 this month and an almost identical 19.1% interest rate compared to May.”
As stated in the report, the average loan amount for Finnish originations “dropped for the third month in a row—this time by 8.4% to €2,438.” After increasing in May, this month, Estonian originations “declined slightly with 2.6% to an average amount of €2,744,” the report noted.
The update further revealed:
“After dropping to a 55-month loan duration in May, June’s figures show Estonian originations coming in at 56 months. This is the same average that these loans have held for many months prior. Finnish originations were slightly lower in duration, averaging 55 months compared to 56 months in May.”
The report added:
“The duration of Estonian originations was distributed almost identical to May. 60-month loans had a 78.5% share of originations compared to 78.0% previously. The next highest loan duration for Estonia was 24-months, which totaled 5.5% of originations in the country, against 4.9% in May.”
As for Finnish originations, 60-month durations “equaled 73.9% of the country’s originations, down 7.3% from last month,” the report noted. Meanwhile, originations skewed toward shorter duration loans, “such as 6-month originations, which totaled 7.3% of Finnish originations in June compared to 5.2% in May.”
The report confirmed that once again, the average age of Estonian borrowers “remained at 37 years old, with Finnish borrowers averaging 45-years of age for the third consecutive month.”
Last month, the average income of Estonian borrowers “increased tremendously by 55.1% to €2,268.” According to Bondora, this is “a good sign that incomes in Estonia are recovering and growing after a slow start to 2021.” Meanwhile, Finnish borrowers “saw their income decline by 11.5% to an average of €3,038,” the company noted.
The report from Bondora further revealed that there was “a decrease in Finnish borrowers with a high school education, which dropped from 125 borrowers last month to 121 borrowers this month and now accounting for only 9.4% of all Finnish originations.”
Finnish borrowers remain mostly “at vocational school level, with 52.5% of the country’s borrowers attaining this education level,” the report added while noting that Estonian borrowers saw a slight increase in its high school educated borrowers, “up to a 41.7% share of borrowers in the country.” This was followed by vocational school, “which, once again, came in at 23.0% of Estonian borrowers.”
As stated in the update:
“June’s borrower employment levels remained almost identical to May’s. There was a slight increase in the number of borrowers employed for more than 5 years, accounting for 33.0% of all borrowers this month compared to 34.0% last month. A similar, 0.5% decline was seen in borrowers employed up to 5 years. Retirees are still least likely to be borrowers, coming in at 6.9% of all Bondora borrowers in June.”
The report further revealed that homeownership for Estonian borrowers was “less prevalent this month, accounting for 40.3% of the nations’ borrowers, compared to 44.1% of its borrowers in May.” The same trend occurred in Finland, where borrowers were “still most likely to be homeowners, but at a lesser rate of 43.9%” and this is “a 2.0% decline from May.”
The report also noted that Bondora managed to achieve a 100.0% verification rate for Finnish borrowers, which was reportedly something it had been close to achieving during the previous month. But the Estonian verification rate “went in reverse, down 1.0% to a verification rate of 95.7%.”
As noted in the report:
“After passing €10 million in May, Bondora outdid itself with €11,036,285 in June, making it another great month for Bondora originations. This growth was led, in part, by the new originations in Estonian AA and A-rated categories, which hadn’t seen loans in over a year. With these new rating categories intact, all signs point to even more growth for Bondora originations in the months to come.”
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