Bondora Originations Continue to Top Previous Months

Market & Pricing

It’s seven months and counting of monthly increases to Bondora originations. And in July, a total of €11,818,925 in originations puts Bondora another step closer on the path to 1 billion, while providing the best customer experience for both borrowers and investors.

Building on the success of each previous month, the numbers continue to rise.
Building on the success of each previous month, the numbers continue to rise.

Country breakdown

In July, originations grew by 7.1% over June, to a total of €11,818,925. And while Estonian originations fell slightly from June’s figures, it was originations out of Finland that showed the most strength. Finnish originations accounted for 35.5% of all Bondora originations in the month, compared to 30.6% last month, totaling €4,192,237. This represents a strong 24.3% month-over-month growth for Finnish originations.

Origination by country – July 2021
Origination by country – July 2021

Not only did the interest rate on Estonian AA-rated originations rise—from 11.3% to 11.4%— their share in total loans originated followed suit. AA-rated loans came to €1,105,920 in July, a whopping 105.7% increase. This brought the total share of such originations from 4.9% to 9.4%. Similarly, A-rated Estonian originations were also on the rise, growing by 66.1% on the month.

These increases came at the expense of lower-rated Estonian originations, which decreased across B-, C-, D-, and E-rated loans. On the flip side, F-rated originations were higher by 218.5%, garnering 5.1% of all originations on the month.

Origination by rating/country – July 2021
Origination by rating/country – July 2021

Loan amounts

For the third consecutive month, the average loan amount for Estonian originations were lower. This time, originations were down by 1.3% to an average of €2,708. Finnish originations had the opposite trend, rising by 4.5% to €2,547.

Average loan amount – July 2021
Average loan amount – July 2021

Loan duration

Estonian originations averaged 56 months for the second consecutive month in a row. Finnish originations were also consistent with last month, with an average 55-month duration.

Loan duration – July 2021
Loan duration – July 2021

As expected from the consistency of average durations, the number of originations by length did not change in any material way. Estonian originations with a 60-month duration fell slightly from 77.0% to 76.3%. In Finland, the opposite trend took place: 60-month originations grew from a 73.9% share to 74.9%. Other changes in originations by duration were all within 1.0% of their proportional rates when compared to June.

Number of loans per duration – July 2021
Number of loans per duration – July 2021

Age

The average age of Bondora borrowers remains unchanged across both originating countries. The average Estonian borrowers remains 37-years old, while Finnish borrowers are still an average of 45-years old.

Average age – July 2021
Average age – July 2021

Income

Over the past few months, the average income for Estonian borrowers has swayed greatly. After rising by 55.1% in June, income for Estonian borrowers dropped again in July by 39.9% to €1,362. Alternatively, Finnish borrowers saw an increase in income to €3,261. This is a 7.3% month-over-month growth rate.

Average net income – July 2021
Average net income – July 2021

Education

The biggest increase in Estonian borrowers’ education came at the vocational school level; 24.1% of Estonian borrowers attained this education level, compared to 23.0% last month. Alternatively, the lowest level of education, junior high school, decreased to 18.6% of Estonian borrowers from 19.4% a month ago.

Finnish borrowers, on the other hand, saw a reversal of that trend, with vocational school education dropping by 4.1% to 48.4% of borrowers. This caused an increase in the proportion of borrowers across all other education levels.

Education – July 2021
Education – July 2021

Employment

In July, the average Bondora borrower tended to have a longer employment history. Employment for more than 5 years grew to 33.9% from 33.0% of all borrowers, and those employed up to 5 years were also higher by 0.7% to 32.2%. Retirees still make up the lowest rate of Bondora borrowers, at 6.3%.

Employment – July 2021
Employment – July 2021

Homeownership

Homeowners are still the most prevalent borrowers on Bondora, making up at 42.3% of all borrowers. However, in July, the biggest shift was tenants, who after accounting for 39.7% of borrowers in June totaled only 21.7% of borrowers this month. On the flip side, those with a housing status of “Other” grew to 15.0% from 6.1% of all borrowers last month.

Homeownership status – July 2021
Homeownership status – July 2021

Verification

For the second consecutive month, 100% of borrowers from Finland were verified by Bondora. As for Estonian borrowers, the verification rate came in at 96.7% compared to 95.7% last month.

Verification status – July 2021
Verification status – July 2021

Nothing is certain, except more Bondora originations

July was another month of growth for loan originations on the Bondora platform. This month’s 7.1% origination growth rate put July’s total at €11,818,925. This was led by AA-rated Estonian originations that jumped by 105.7%, and A-rated originations, which also had a strong growth rate of 66.1%.

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