Finnish originations grew exponentially in January

Market & Pricing

Totaling €6,186,462 in January, Bondora originations fell 12.2% compared to the last month of 2020. But Finnish originations exploded and continue to grow exponentially.

Finnish originations grew exponentially in January.
Finnish originations grew exponentially in January.

All told, there was a 181.0% increase in originations from Finland, which totaled €666,486 on the month. This brought Finnish originations’ total share on Bondora up from 3.4% to 10.8%. Meanwhile, Estonian originations fell by 18.9%, down to €5,519,976.

Origination by country – January 2021
Origination by country – January 2021

In January, all Finnish loans came from the D-rated category, as there were no C-rated originations out of the country in the month. Estonian D-rated loans totaled €992,348 over the month. This category had the biggest increase in the share of originations and now garners 16.0% of all Bondora originations. It had a 13.7% share in December 2020.

Origination by rating/country – January 2021
Origination by rating/country – January 2021

Loan amounts

Average loan amounts for Estonian and Finnish originations continue to head in opposite directions. The average Finnish origination grew, once again, averaging €3,283. It’s a 3.8% increase from last month and almost twice the average loan amount from November.


On the other end of the spectrum, the average Estonian loan amount decreased once again. Originations averaged €2,717 in January, down by 4.3% on the month.

Average loan amount chart – January 2021
Average loan amount chart – January 2021

Loan duration

Estonian originations stayed consistent, as the average loan duration came in once again at 56 months. Finnish originations saw their average duration increase slightly, up to 59 months from 58 months in December 2020.

Average loan duration – January 2021
Average loan duration – January 2021

Of all Finnish originations, 94.1% originated at 60-months. Estonian originations were also mostly 60-months in duration, with 75.4% of such originations at that length. The next highest origination count for Estonian loans was 36-month originations (4.8%).

Loan duration breakdown – January 2021
Loan duration breakdown – January 2021

Average age

Borrowers from Finland once again averaged 46-years of age. In Estonia, the average age of its borrowers dropped slightly from 37-years old to 36-years old.

Average age – January 2021
Average age – January 2021

Income

After falling by 32% last month, Estonian borrowers made significantly more income in January. Estonian borrowers’ average income came to €2,896, an 88.5% jump from one month ago. Finnish incomes, meanwhile, dropped by 17.5% to €3,155.

Average net income – January 2021
Average net income – January 2021

Education

Education trends for both Finnish and Estonian borrowers remained the same in January. Finnish borrowers were most likely to have a vocational school education (41.8%), followed by a university education (36.9%). On the other hand, Estonian borrowers were most likely to have a high school education (40.1%) followed by a vocational school education (25.3%). These remain in-line with the previous months’ statistics.

Education – January 2021
Education – January 2021

Employment

Much like education statistics, employment levels were in-line with December as well. 36.1% of Bondora borrowers were employed up to 5 years, followed by 32.3% of borrowers who were employed more than 5 years. Borrowers are still least likely to be retired, with only 85 total borrowers fitting that employment status.

Employment – January 2021
Employment – January 2021

Homeownership status

More Finnish borrowers were homeowners in January than in December, with 63.5% of such borrowers owning a home, up from 62.7% last month. Estonian borrowers are also most likely to be homeowners, although less than in December, with 42.3% of such borrowers being owners this month, down 1.5%.

Homeownership status – January 2021
Homeownership status – January 2021

Verification status

Once again, all Finnish borrowers (203) were verified by Bondora. In January, the rate of verified Estonian borrowers was consistent with last month, coming in at 97.0% compared to 97.4% in December.

Verification status – January 2021
Verification status – January 2021

Origination trends stay the same as Finland grows

Most of the data for Bondora originations kept a constant trend when compared to the end of 2020. Statistics like employment, homeownership, loan durations, and education stayed the course. Even as total originations fell, Finnish originations saw tremendous growth, up 181.0% month-over-month. This is a positive sign for such originations in the coming year.

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