April 2023: Slight Dips in Originations & Investments

Stats & Data

The 2nd quarter of 2023 kicked off with solid numbers. March statistics smashed all previous records and set new all-time highs for investments and originations. Although the numbers have dipped slightly, they’re still topping €20M each, which sets us on track to reach our goals. Here are more stats from April:

April 2023: Slight dips in originations & investments
April 2023: Slight dips in originations & investments

1,309 new investors joined Bondora in April. In the same month, investors earned over €1M in returns, and the total investment amount increased by €19M!

Loan Originations

In March, we set a new loan origination record of €23,300,618. Although the total for April dipped by 13.2%, it totaled €20,216,799, which is an amount we’re delighted with.

Finnish loans, once again, have the majority, with a 73.6.7% share. Estonia follows with 21.0%, the Dutch market with 4.4%, and Spain with 1.6%. This is the first time that the Dutch market has taken the spot of 3rd largest market.  

Finland accounted for most of all originations, with €14,829,309, declining by 14.8%. Estonian originations declined by 9.6% to €4,242,555. In contrast to all other markets, the Dutch market continues to rise exponentially, growing by 137.7% to €887,689. Spain decreased once again by 69.1% to €257,246.

The average loan interest rate increased slightly from 19.5% to 20.4%.

Loan risk ratings and split per country

As we’ve discontinued the investment funding and originations blog series, we’ll now include those graphs here so you don’t miss any valuable information:

Origination by rating/country – April 2023
Origination by rating/country – April 2023
Origination by rating/country – March 2023
Origination by rating/country – March 2023

For more in-depth statistics, you’re welcome to view them on our general statistics page for daily updated figures.

Temporary changes to Spanish loan originations

The Spanish market has declined abruptly due to changes we’ve made to our internal risk-scoring calculations. We’re consolidating C and D-rated loans into E and F-rated loans. This process is ongoing and will give you a more realistic picture of our portfolio once done.

In light of these changes and to keep the portfolio as efficient and healthy as possible, we’re not currently issuing new loans in Spain for the time being. We’re reviewing the data we’ve gathered over the past months and working on further improving our creditworthiness assessment process to ensure we’re onboarding the right customers to keep our loan portfolio stable.

We made similar assessment changes in 2021, which allowed us to improve our performance significantly. We’ve gathered enough data to move to even smarter predictive models and expect even more improvements.

We’ll update you on this change when we have more news to share.

Investment product funding

After reaching new record-highs in March, investment funding decreased in April by 13.2% to a total investment of €20,181,641.

Go & Grow’s share decreased by 0.1% to 99.7%, with the API making up the remaining 0.3%. Go & Grow received €20,116,259 of all investments and the API €65,382.

Due to the closure of Portfolio Manager and Portfolio Pro, we’ll now only see API and Go & Grow in this chart and can expect a similar split each month:

Investment shares across Bondora products in April 2023.
Investment shares across Bondora products in April 2023.

Secondary Market

Activity on the Secondary Market decreased. This was expected, as investors have sold off more loan pieces during the last two months after the closure of Portfolio Manager and Portfolio Pro. Transactions decreased by 11.0%, equalling € 138,354 worth of transactions.

All the categories decreased, except for Portfolio Manager, which will now remain at 0 as no new transactions can occur using Portfolio Manager. The API decreased by 20.9%, and Manual transactions by 3.4%. Manual transactions still have the most significant share of 60.9%, and the API has a 39.1% share.

Secondary Market total transactions – April 2023
Secondary Market total transactions – April 2023

Collection and Recovery

April’s total loan collection count showed a positive increase to 90,050 loan payments being recovered. This is a 1.7% increase from March. Cash recovery declined by 32.2% but still accounted for a total of €888,006 being recovered.

Remaining consistent with previous statistics, most cash and loan payments were recovered from Estonia, with €503,650 cash and 41,954 payments being recovered. In Finland, cash recoveries declined by 20.8% to €346,696. Spain’s cash recovery figures continued to decline this month by 10.3%, totaling €37,659. There’s been no need for recovery efforts in the Netherlands.

The 2014-2023 recovery rate remained relatively stable at 52.4%, compared to 52.5% in March. 2023’s recovery rate also dipped only slightly, now at 72.4% compared to 72.8% in March. As the year progresses, the recovery rate will likely decline more.

Yearly recovery rates – April 2023
Yearly recovery rates – April 2023

Visit our general statistics page for daily updates. Follow our blog to make sure you get all Bondora-related news first.