Bondora originations continue to grow

Market & Pricing

Bondora originations grew for the third consecutive month in March. Totaling €7,723,492, originations climbed €1,260,760 compared to February, which translates to a 19.5% growth rate.

Bondora originations grew for 3 months in a row.
Bondora originations grew for 3 months in a row.

Country breakdown

Once again, Bondora limited originations to Finland and Estonia, both of which grew on the month. Estonian originations rose by 22.8% to €6,338,915, while Finnish loans were higher by 6.4% to €1,384,577 over the month. The increase in Estonian originations brought its total share of all Bondora originations up to 82.1% from 79.9% last month.

Country breakdown
Country breakdown

Origination by country – March 2021

D-rated loans continued to be the only originating category for Finnish loans, accounting for 17.9% of all Bondora originations, compared to 20.1% last month. They also had a similar interest rate to February (18.9%).

Meanwhile, all Estonian categories increased their origination amounts in March by the following percentages:

  • B-rated: +11.1%
  • C-rated: +19.0%
  • D-rated: +38.6%
  • E-rated: +48.3%
  • F-rated: +231.9%

However, unlike last month, only E-rated loans’ interest rate rose by 1.0% to 45.0%.

Origination by country – March 2021
Origination by country – March 2021

Loan amounts

Estonian loan amounts grew from €2,617 in February to €2,783 in March. This is a reversal of the downward trend we’ve seen over the past two months. Finnish loan amounts were also higher, averaging €2,942 in March.

Average loan amount – March 2021
Average loan amount – March 2021

Loan duration

As expected, Estonian originations came in at the same 56-month average as the past year. Finnish loans were also consistent compared to last month, maintaining a 57-month average.

Average loan duration – March 2021
Average loan duration – March 2021

Estonian originations skewed toward the top and bottom of duration lengths. This means there was an increase in originations at 6-, 9-, and 12 months and increases at 42-, 48-, 54-, and 60-months. These figures did balance themselves out, which is why the average duration remained at 56-months. Finnish originations saw a similar trend, with increases in 6-, 12-, and 60-month originations.

Number of loans per duration – March 2021
Number of loans per duration – March 2021

Average age

The average age of Estonia borrowers came to 37 years old for the second month in a row. On the other hand, Finnish borrowers were, on average, older this month, averaging 48 years of age—up two years from last month.

Average age – March 2021
Average age – March 2021

Income

Estonian borrowers’ income was sharply lower, down by 16.4% month-over-month, averaging €1,891 compared to €2,261 in February. Finnish borrowers also saw their income decline in a statistically significant way. Finnish borrowers averaged €3,165, a 21.7% decline in the month.

Average net income – March 2021
Average net income – March 2021

Education

The number of Finnish borrowers with a high school (36) and university (114) education was lower on the month, even as total originations rose. This brought the ratio of Finnish borrowers with a vocational school education even higher, garnering 53.5% of all Finnish originations, compared to 47.0% last month.

There was an increase in all categories of education for Estonian originations as follows:

 FebMarchPercent Increase
Junior high school382444+16%
Vocational school460546+19%
High school833943+13%
University297344+16%
Education for Estonian originations

Education – March 2021
Education – March 2021

Employment

Borrowers employed up to 5 years (969) overtook those employed for more than 5 years (908), garnering a 35.3%. Those with the employment status of Other or being retired continue to be the least common employment statuses for Bondora borrowers.

Employment – March 2021
Employment – March 2021

Home-ownership status

Of all Estonian borrowers, 40.6% were homeowners, down from 43.2% in February. This was followed by Estonian borrowers living as tenants at 22.7% of borrowers in the country. Finnish borrowers had fewer homeowners this month and more of a shift to those with a mortgage (41) and living as tenants (114).

Home-ownership status – March 2021
Home-ownership status – March 2021

Verification status

The verification rate for Finnish borrowers once again hit 100% after failing to do so in February. Meanwhile, Estonian borrowers were slightly less likely to be verified, but only by a negligible amount. 98.1% of Estonian borrowers were verified in March, down only 0.4% from a month prior.

Verification status – March 2021
Verification status – March 2021

Originations surge

Bondora originations surged higher by 19.5% in March. This surge was mainly led by Estonian originations, which totaled €6,338,915 on their own. March was the third month of growth for originations on the Bondora platform. It’s a positive trend that investors hope will continue as we turn toward spring and into summer.

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