Performance of recovery process – August 2017

KEY TAKEAWAYS

total-recovery-rates-august-2017

  • Q2 of 2017 gave a small boost to average recovery rates for past year in both Finland and Spain. From Q2 of 2016 to Q2 of 2017, the average recovery For Finland was 59% and for Spain 32%.
  • Estonias recoveries have been very stable once again. Average recovery for 2015 dipped one percent to 67% but otherwise the recoveries are on the same level as month ago.
  • Slovakias total average recoveries saw a decrease again, dipping to 39% from 42%.

PRINCIPAL RECOVERY RATES ACROSS MARKETS

Recoveries in all countries have seen stretches of decreased recoveries aswell as some periods of increases but overall trends still remain quite stable. As a result the overall recoveries across years fluctuate within few percentage points. Estonia, Finland and Spain have all been keeping a rather stable trends for average total recoveries, with Estonia hovering around 65%, Finland 44% and Spain 27%. Principal recoveries from Slovakia have been the most volatile of the group due to much smaller principal amounts involved. The latest recovery rate dip for Slovakia was mostly the result of larger recovery decreases from 2016 loans. The total average recovery for Slovakia still hangs around 40%.

Quarter 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2
Estonia 53% 66% 72% 72% 97% 68% 47% 55% 55% 66% 67% 64% 49% 59%%
Finland 41% 60% 35% 53% 61% 59% 19% 20% 30% 53% 62% 34% 45% 100%
Spain N/A 17% 18% 19% 29% 26% 27% 32% 25% 56% 30% 13% 20% 40%
Slovakia N/A N/A 4% 8% 25% 11% 50% 38% 73% 131% 16% 33% 10% ND

You can find additional related information about the recovery process from these articles:

 

Performance of recovery process – July 2017

KEY TAKEAWAYS

bondora-recovery-rate-july-2017

  • Finland experienced a mild increase in past year average recovery performance moving up to 47% from 45% last month.
  • Other performance changes were mostly mild with the average across all countries dropping to 49% from 52%.
  • Slovakia saw the largest drop in performance dipping down to 57% from 75% as seen in last month’s measurement.
  • The larger trend remains positive. Total average recoveries for 2016 to date of 49% still hover above those of 2014 and 2015.

PRINCIPAL RECOVERY RATES ACROSS MARKETS

Estonia, Finland and Spain all continue to exhibit relatively stable recoveries as seen by their low standard deviation since Q1 of 2015. For example, the total 2016 averages for each country have not moved more than 6 percentage points since last month. Moreover, for 2017 the total past year averages for Estonia, Finland and Spain have not dropped more than 3 percentage points. The one exception to this characteristic is Slovakia with a drop of 18 percentage points. Higher recovery fluctuations  for Slovakia mostly stem from the fact that the total recovery transaction amounts are significantly smaller and thus changes have greater effect on the recovery rates. However, it’s still possible that the 2015 to 2016 increasing trend of recoveries for the country will continue as 2017 matures.

Quarter 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1
Estonia 53% 67% 73% 74% 98% 70% 47% 56% 52% 68% 69% 64%  52%
Finland 40% 61% 36% 54% 62% 57% 18% 20% 30% 51% 66% 34%  55%
Spain N/A 18% 18% 19% 30% 27% 28% 33% 27% 59% 32% 13%  24%
Slovakia N/A N/A 4% 9% 27% 12% 50% 41% 77% 146% 20% 34%  9%

You can find additional related information about the recovery process from these articles:

 

Performance of recovery process – June 2017

KEY TAKEAWAYS

Recovery rates total average - June 2017

  • During the past month, Estonia, Finland, Spain and Slovakia all experienced modest declines in recovery performance relative to the previous month. However, the only country to drop more than three percentage points was Slovakia which is still strong with an average recovery for 2016 of 75%.
  • The positive story is the long-term trend. Finland, Spain and Slovakia have all seen increases in recovery performance relative to their 2015 averages. The clearest example of this increase is seen with Slovakia where average recovery rates have increased by 41 percentage points between 2015 and 2016.
  • The total country average of 56% for 2016 indicates a strong trend relative to a total average of 47% over the period ranging from 2014 to 2016.

PRINCIPAL RECOVERY RATES ACROSS MARKETS

Finland, Spain and Slovakia are holding steady with 2016 average recovery rates that are at their highest since 2014. Meanwhile, Estonia has dropped in 2016 by two percentage points below its total average. The total average recovery across all markets is the highest in 2016 of any other total year average. Total average recovery rate for 2016 was 56%, while 2014 and 2015 averages were 42% ad 43% respectively. Across all countries 2016 has exhibited a cumulative of eleven quarters of improved performance relative to the preceding quarter. This figure outnumbers the total number of declining quarters. We’re continuing to focus on improving recoveries to ensure stronger investor returns.

Quarter 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1
Estonia 53% 67% 73% 74% 100% 71% 47% 55% 53% 67% 72% 68%  59%
Finland 40% 62% 36% 54% 64% 60% 16% 19% 29% 53% 72% 38%  33%
Spain N/A 18% 18% 19% 31% 27% 29% 35% 27% 63% 34% 15%  26%
Slovakia N/A N/A 4% 9% 28% 12% 52% 45% 80% 159% 22% 39%  ND

You can find additional related information about the recovery process from these articles:

 

Performance of recovery process – May 2017

KEY TAKEAWAYS

Total average recovery rates May 2017

  • The average recovery rates in Finland, Spain and Slovakia are all higher in 2016 compared to their 2015 figures.
  • Slovakia continues its successful recovery with an average 2016 recovery rate of 84% compared to just 36% in 2015. Moreover, this strong trend is holding steady as previous months have shown similar results.
  • Estonia continues to experience a slight down trend. The average recovery rate was 74%, 69% and 66% in 2014, 2015 and 2016 respectively.
  • Improvements in Finland, Spain and especially Slovakia have all helped raise the total average recoveries among all countries for three consecutive years.

PRINCIPAL RECOVERY RATES ACROSS MARKETS

As the Bondora platform has developed we’ve enacted more stringent collection strategies. For example, we hand over the overdue loan cases to debt collection agents just one week after the borrower misses a payment. Additionally to in-house debt collection, our partnerships with external debt collection agencies and legal entities in Estonia, Finland and Spain have all helped us track down debtors more efficiently. We believe these reinvigorated efforts will yield improving results over time. In fact, we initiated many of these practices in 2016 which may explain the total improved recovery averages jumping from 44% to nearly 60% from 2015 to 2016.

Quarter 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4
Estonia 53% 68% 74% 76% 102% 72% 47% 55% 54% 70% 72% 66%
Finland 41% 63% 37% 55% 66% 60% 15% 21% 30% 56% 72% 46%
Spain N/A 18% 18% 19% 30% 26% 29% 34% 28% 67% 35% 16%
Slovakia N/A N/A 4% 9% 29% 13% 55% 48% 80% 179% 25% 51%

You can find additional related information about the recovery process from these articles:

 

Performance of recovery process – April 2017

KEY TAKEAWAYS

  • The average recovery performance in Slovakia has made strong progress over the years. The recovery rate from the start of 2014 through 2016 was 50%. However, the 2016 average is 85%. As 2016 data continues to mature this figure may drop but the overall trend is encouraging.
  • The yearly average recovery performance for Estonia, Finland and Spain have all remained stable as we’ve grown the scale of our marketplace lending base. Recovery rates for Estonia is still firmly hovering near 70%, while recovery rates for Finland and Slovakia are fluctuating around 50%. Spain has the weakest total recovery rate with just above 30%.
  • Finland, Spain, and Slovakia have all seen improvements in their average annual recovery figures from 2014 to 2016. Again, averages for 2016 may drop, however, the upward trend is likely to survive.
  • The trend in recoveries from 2014 to 2015 for all countries has been modestly up. Given that we entered the second quarter of 2017, this increase is unlikely to change.

PRINCIPAL RECOVERY RATES ACROSS MARKETS

The average recovery rates across all countries in 2014 and 2015 was relatively unchanged. This consistency offers stable data for investors seeking to forecast the success of recovery rates or factor this data into the Yield-To-Maturity calculation in the Dashboard. Data from 2016 illustrates that this consistency will continue or even improve. Even if 2016 falls from its current average of 60%, relative to the 2014 and 2015 averages of 42% and 44% respectively, we’re still unlikely to see a yearly downtrend in recoveries. As we adjust to the growing scale of our user base we expect to see recoveries increase as efficiencies in our efforts grow.

Quarter 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4
Estonia 53% 68% 73% 76% 103% 73% 48% 54% 55% 68% 75% 66%
Finland 40% 63% 36% 56% 67% 61% 16% 18% 29% 56% 75% 41%
Spain N/A 18% 18% 19% 30% 26% 30% 33% 30% 72% 35% 17%
Slovakia N/A N/A 4% 9% 27% 13% 55% 51% 75% 190% 28% 47%

You can find additional related information about the recovery process from these articles:

 

Performance of recovery process – March 2017

KEY TAKEAWAYS

  • The average recovery performance for 2016 was 64% which outperformed the average recovery over the last three years of 51%. This difference marks an uptrend in past years success of capturing past due payments.
  • Recoveries in Spain and Slovakia have each seen periods of increases in the past three years, although for their 2016 average, both saw a decrease of 9 percentage points compared to past months recovery overview.
  • In Finland, the three-year average recovery stayed on par with last months rate while the average recovery for 2016 increased 10 percentage points to 56%.
  • Compared to last month, past year average recovery in Slovakia saw significant dip from 108% to 99%. Still, across all countries this is the strongest average gain compared to its three-year average of 56%.
  • Estonia’s average 2016 recovery performance is essentially flat at 63% and its three-year total slightly higher at 67%.

PRINCIPAL RECOVERY RATES ACROSS MARKETS

Estonia, Finland and Spain all experienced drops in 2016 Q4 recovery performance relative to the previous quarter rates. However, this decrease may be due, in part, to the data which for now excludes December. Moreover, the broader trend is still moving in the right direction as we become more successful in our recovery process. For example, Estonia and Finland have each seen five consecutive quarters of continued recovery rate increase from Q3 of 2015 to Q3 of 2016. Again, the break in this trend as of Q4 2016 might be due to pending December data.

Quarter 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4
Estonia 53% 69% 73% 77% 104% 74% 48% 51% 54% 67% 72% 59%
Finland 42% 64% 35% 55% 69% 63% 16% 19% 28% 57% 78% 59%
Spain N/A 19% 17% 19% 31% 26% 32% 34% 32% 77% 37% 15%
Slovakia N/A N/A 5% 9% 28% 13% 55% 57% 79% 213% 33% 71%

You can find additional related information about the recovery process from these articles:

 

Performance of recovery process – February 2017

KEY TAKEAWAYS

  • Throughout 2015 and 2016 Spain, Finland and Estonia have all experienced periods of improved recovery. Along with improvements, all three countries saw an average decrease of three percentage points in Q1 and Q2 of 2015 compared to last month.
  • Finland, Spain and Slovakia have each made strong improvements in their 2016 average recovery performance relative to their total combined average for 2014 and 2015. For example, Slovakia’s 2014 & 2015 average recovery performance was 24% whereas 2016 currently stands at an average of 123%.
  • We still have more work to do with recovery rates as some countries experienced a slight dip in 2016.

PRINCIPAL RECOVERY RATES ACROSS MARKETS

Though recoveries have dipped, the February averages reaching back to Q4 of 2015 are relatively stable with those of January for the same period. For example, Estonia, Finland and Spain’s February Q4, 2015 to Q3, 2016 averages are all within 1 percentage point of the averages for the same period in January. 2016 has seen five periods of recovery improvement while 2015 saw only two periods of recovery improvement (Spain in Q3, 2015 and Estonia in Q4 in 2015). The data in the table below is as of 14.02.2016.

Quarter 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3
Estonia 53% 70% 74% 78% 107% 77% 49% 52% 57% 71% 73%
Finland 42% 65% 34% 56% 71% 66% 17% 19% 30% 53% 83%
Spain N/A 19% 16% 20% 32% 26% 34% 36% 34% 85% 39%
Slovakia N/A N/A 5% 10% 29% 14% 56% 63% 78% 251% 39%

You can find additional related information about the recovery process from these articles:

 

Performance of recovery process – January 2017

KEY TAKEAWAYS

  • Estonia’s loan recoveries have slightly dipped during the past month for period before 2016 but still showing an overall upward trend in 2016. The past years average, from Q4 of 2015 to Q3 of 2016, Estonian loan recovery is still hovering near 64%.
  • Finlands loan recoveries saw slight increases for Q3 and Q4 of 2014, but the past years average has decreased 5 basis, from 52% to 47%, compared to a month ago.
  • The average recoveries for Spanish and Slovakian loans continued to decrease for the period of 2015 and forward, with recoveries of 42% and 84% respectively. Still past years averages are showing better performances with 50% for Spanish and 122% for Slovakian loans.

PRINCIPAL RECOVERY RATES ACROSS MARKETS

Despite the slight decreases in the past couple of months, the overall recovery levels have been quite stable for Estonia’s and Finlands loan recoveries. Spanish and Slovakian loan recoveries are also showing improved numbers across 2016, which aligns with our increased efforts in improving and optimizing the collection process for the past year. The data in the table below is as of 10.01.2016.

Quarter 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3
Estonia 54% 71% 74% 79% 110% 79% 49% 51% 59% 66% 78%
Finland 41% 56% 34% 57% 72% 69% 18% 20% 32% 60% 77%
Spain N/A 18% 15% 20% 33% 27% 33% 39% 30% 94% 37%
Slovakia N/A N/A 5% 10% 29% 14% 56% 68% 81% 292% 47%

You can find additional related information about the recovery process from these articles:

 

See how much investors have earned with our Refer-A-Friend program

A few months ago we announced our Refer-A-Friend program. This simple system lets you earn money for simply telling friends about the value of Bondora. The program is available to all our investors. Anyone who joins with your custom referral link and becomes an investor on our site, gets 5 EUR added to their account for their first investment. When you refer them, you get 5% of everything they have invested over the first 30 days. You get paid inside 20 business days after their first 30 days on the site. As long as your friend invests at least 10 EUR and follows our terms and conditions that all investors have to follow, the money is yours.

Average investor earned 168€ of extra income in three months

For the first time since launching the program we’re proud to share the results of those who have supplemented their earnings with referral bonus cash.

Starting from late September, 137 investors have been participating in the personal referral program. These 137 investors have invited additional 240 investors to Bondora, which makes 1,75 new investors per referrer.

Refer-A-Friend program user statistics

The average earned bonus was €168 and our highest earned bonus by referring investor to date is €1,534. Bondora has paid out a total bonus of €23,063 to our users. To date the total investment balance of our referrals has reached €461,263.

Refer-A-Friend program earnings

Join and earn more

More than 130 of our users have discovered how easy it is to send a quick message to a friend. When you invite someone to seek higher investment returns with Bondora, you’re sharing the value of your experience while earning easy income.

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Performance of recovery process – December 2016

KEY TAKEAWAYS

  • Estonia’s loan recoveries improved showing the strongest performance (75%) since Q3 of 2015.
  • This also outpaces the past year average of 64% ranging from Q4 of 2015 to Q3 of 2016.
  • Finland also experienced a dramatic increase in recoveries. The 90% is well above every quarter since Q1 of 2014. This represents an increase of 38 basis points over the past year average of 52%.
  • Spain and Slovakia each decreased compared to Q2 of 2016 with. The recoveries in those countries were 46% and 59% respectively.
  • The average recovery among all four countries is just over 2/3 of the value of the principal.

PRINCIPAL RECOVERY RATES ACROSS MARKETS

Estonia and Finland have both managed to sustain an uptrend for the previous five quarters. Since Q3 of 2015 both countries have made measurable improvements in recovery performance. Spain has also illustrated a similar trend until this latest data. We’re hopeful this is a momentary lapse. Slovakia has been less predictable, however the country has the highest past year average recovery figure which is encouraging. The data in the table below is as of 11.12.2016.

Quarter 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3
Estonia 54% 72% 75% 80% 114% 83% 50% 52% 62% 66% 75%
Finland 41% 57% 33% 56% 74% 72% 20% 21% 342 64% 90%
Spain N/A 19% 13% 19% 34% 28% 34% 42% 30% 101% 46%
Slovakia N/A N/A 5% 10% 30% 15% 57% 77% 83% 347% 59%

You can find additional related information about the recovery process from these articles: