New Origination & Investment Highs for 2022

Market & Pricing

In March, a total of €14,496,204 was invested on Bondora. This is the highest amount invested for 2022 thus far and a 4.0% increase from February. Loan originations increased by 3.6%, totaling €14,643,367 in March. This is also the highest amount originated in 2022 so far! Read more:

New origination & investment highs for 2022.
New origination & investment highs for 2022.

In contrast to February, when only Portfolio Pro and the API had positive growth rates, all Bondora investment products, except the API, increased their investment amounts in March. The API decreased its new investment value by 8.7% to (€8,134). Portfolio Pro had the highest growth rate, but Go & Grow maintained its top position with the total investment in March (€13,463,490).

Product funding figures:

  • Go & Grow                       + 4.0%
  • Portfolio Manager           + 2.7%
  • Portfolio Pro                    + 5.0%
  • API                                    – 8.7%
Investment by product – March 2022
Investment by product – March 2022

Investment by product

The total investment shares of Bondora investment products remain the same as last month, indicating a constant trend amongst investors.

Go & Grow still has the bulk share of 92.9%, which is equal to €13,463,490 in March. It increased its monthly investment total by 4%. In the 2nd position, we have Portfolio Manager with a monthly investment total of €573,131—a 2.7% growth rate. In 3rd, we have Portfolio Pro, which grew by 5% to €451,449. And lastly, we have the API, which decreased by 8.7% to €8,134.

Investment by product – March 2022

Loan originations

After dropping slightly in February, loan originations increased again in March by 3.6%. A total of €14,643,367 was originated in Bondora loans last month. Estonian originations fell slightly, but Finnish and Spanish originations all grew. Here’s a breakdown of all the origination stats:

Country breakdown

After dipping in February, Finnish loans rebounded with a 6.3% increase. The total share grew from 59.9% to 61.5%. Spanish originations increased by a mammoth growth rate of 32.4% and now have a 3.5% share. In contrast, Estonian originations decreased by 2.7% and now have a 35.1% share.

With €9,011,186 originated, Finland has the largest loan origination total. Despite its decline, Estonia remains in 2nd place with €5,136,305 originated. And Spain continues to grow steadily with €495,876 originated.

After increasing by 0.5 in February, the average interest rates increased by 0.03 in March. Even though it’s a slight increase, it can be traced to the fluctuating Estonian interest rate that increased by 0.36. Once again, it had the most significant influence on the average interest rate across all three markets. And as we’ve seen in recent months, the average Spanish interest rate remains virtually unchanged (-0.03%), and the average Finnish rate increased by 0.10%.

Origination by country – March 2022
Origination by country – March 2022

Continuing on a path of slow and steady growth, Spain’s February share of 2.7% of all loans has grown to 3.4%. We are still only originating C-rated loans in Spain. This is also the risk-rating category that is the most popular in the other markets. In Finland, C-rated loans make up 53.2% of all loans—a 1.5% increase from February. And in Estonia, the same category’s share increased by 0.3%.

In Estonia, B-, D- and E-rated loan categories’ shares declined slightly due to the overall decline in Estonian originations in March.

Origination by rating/country – March 2022
Origination by rating/country – March 2022

Loan amounts

Following February’s footsteps, the average loan amount for all three markets decreased: Estonia by 8.2%, Spain by 6.8%, and Finland by 5.5%. This is now the 6th month in a row that Estonian loan amounts have declined.

Taking the lead from Spain, Finland now has the highest average loan amount with €2,419. Spain is in a very close second with €2,407, and Estonia trails with €2,152.

 Average loan amount – March 2022
Average loan amount – March 2022

Loan duration

Once again, the three markets’ average loan duration lengths are very similar. In March, Finland was the only country to remain unchanged, holding strong with a 56-month duration. Spain and Estonia both decreased by one month and two months, respectively.

Loan duration – March 2022
Loan duration – March 2022

Once again, 60-month loans are the most popular across all markets. This duration consistently has the overwhelming majority in each country. In Estonia, 1,834 loans were issued in this category, in Spain 149, and Finland 2,780. 24-month loan durations are the 2nd most popular in Estonia and Spain. In Finland, 12-month loans are the 2nd most popular, with 202 borrowers choosing this duration.

Number of loans per loan duration – March 2022
Number of loans per loan duration – March 2022 (Click to enlarge)

Average age

As consistent as ever, the average borrower from Finland remains 43 years of age. They remain the oldest by far. Estonian borrowers tend to be 37 years old—the same as last month. And in Spain, the average borrower age dropped by 1 year to 38 years old.

Average age – March 2022
Average age – March 2022

Income

After decreasing in February, the average net income of borrowers across all markets increased again. Spain and Finland grew slightly, with 2% and 3.4%, respectively. However, the Estonian market had the most significant growth, increasing by 63.7%. This is a welcome growth rate after the 24.3% drop in February. This jump means Spanish borrowers now have the lowest average net income, while Finnish borrowers still have the highest.

Average net income – March 2022
Average net income – March 2022

Education

In March, we see a bit of a change regarding education statistics. In March, most borrowers have Vocational school qualifications (39.6%), thanks to the bulk of Finnish borrowers who fall into this category (51.9%). This is followed by borrowers with high school qualifications (23.7%). In both Estonia (41.8%) and Spain (47.1%), this is the most popular category.

Education – March 2022
Education – March 2022

Employment

The statistics regarding borrowers’ employment remain consistent with last month and months prior. Most borrowers (35.3%) are employed for more than 5 years. Those employed for up to 5 years accounted for the 2nd largest share of all borrowers (27.9%). Retirees remain the least populated segment, accounting for just 7.7% of borrowers.

Employment – March 2022
Employment – March 2022

Homeownership status

Across all 3 markets, the most popular category is owning a home (40.8%) as opposed to the 2nd most popular category of being a tenant (33.6%). This is mirrored in Estonia and Finland, but in Spain, most borrowers are tenants (43.2%), and those who own a house make up only 10.2%. In Spain, the second-biggest category is living with parents (24.3%).

Homeownership status – March 2022
Homeownership status – March 2022

Verification status

Spain and Finland maintained their 100% verification rate for the 7th and 3rd consecutive months. Estonia’s verification rate increased again by 0.1% to 99.6%. This brings the total verification rate to 99.0%.

Verification status – March 2022
Verification status – March 2022

New origination and investments highs for 2022

We’re happy to celebrate new origination and investment highs for 2022. This is a great way to end Q1 and makes us even more confident in the performance of the Bondora portfolio for the rest of 2022.