Start investing faster with our new instant payment options

Our new instant payment options means Bondora users can move at the speed of the market. Previously, making a deposit to a Bondora account sometimes required more than a day due to bank-to-bank transfer processing. Now, investors can begin investing much faster. Use a Visa, Mastercard credit and debit cards or SOFORT online payments to make an instant deposit.

Top up your account instantly

These changes mean users can invest faster. Why is this important? As more users learn the benefits of P2P investing we’ve notice that our higher rated loans have become increasingly popular. As a result, some prefer funding methods that occur faster.

These new options come at no additional cost. Once you make a payment you will immediately see the results in your Bondora account. Therefore, you can allocate the money towards loans right away.

Secure payments

Security remains a priority at Bondora. We have initiated these options without sacrificing any of the privacy users have come to expect. Wirecard Bank secures all payments via credit card. At Bondora, we do not receive or retain any user’s credit card information. This method meets all the regulations required for PCI certification. Our users in Austria, Belgium, Germany, Italy, the Netherlands, Poland, Switzerland, and Spain can choose SOFORT as an instant payment option. Many prefer this secure method because it requires no storage of any confidential information.

Put your money to work and get started with instant payments today.

Benchmark your returns with the new Annualized Net Return On Investment graph

As part of our general and personal statistics page redesigns we have updated the look and data on the Annualized Net Return on Investment graph. Our approach is to provide a more complete reading of returns and how they compare to benchmarks.

Annualized Net Return On Investment graph

Users can click the small display setting icon in the top right corner to select which of these comparison options they want included in the graph.

Annualized Net Return graph display settings

Benchmark: Barclay’s Pan-European High-Yield Index

We’ve selected Barclay’s Pan-European High-Yield Index as a benchmark for your Bondora performance. We believe this is a reasonable basis for measuring the success of your portfolio. While risk levels vary due to differing investing styles (conservative, aggressive, etc.), the overall nature of a Bondora portfolio is similar to that of a high yield bond index because you are lending money and earning interest. Barclay’s index is marked on the graph with orange line.

Realised Current Net Return

You’ll notice that on the General Statistics page we’ve seen consistent outperformance of this benchmark as seen by the realized current net return (Xirr). The same data point is available for your own portfolio on your personal statistics page. This data is represented with a blue line. Hover over each dot for a reading of the performance month or quarter.

Portfolio Expected Return

The green line represents the portfolio’s expected return. This calculation is simply the weighted average of the expected return multiplied by the outstanding principal. The value ranges are marked on the graph with light green.

Portfolio Expected Return Based on Original Balance

This darker green line is calculated by taking the weighted average of the expected return multiplied by the purchase price of a note. The value ranges are marked on the graph with darker green.

Get better insight with our new Statistics pages

Last week we rolled out a major update of our General and Personal statistics pages. The update is a refreshing new look at all the most important measurements investors need to make informed decisions. Customers have embraced the new layout and charts which provide wide range current data to quickly understand the value of holdings.

general statistics paqe update

At Bondora we’ve taken the time to arrange the data with graphical representations that make getting the critical info fast. We’ve created large layouts and a tile design that prioritizes data on annualized net returns, bid levels and profitability by loan rating and many more. We have also included new risk management charts including cash flow from recoveries, and cumulative recovery rates.

We have always made transparency the core of our mission. This characteristic sets us apart from the competition. However, transparency means more than just making information available. We want transparency that makes the data useful, meaningful and clear. The new designs and data options achieve this end.

Our new data outlay offers the benefits of broad analytics and granular information in one package. That is, without having to leave the page investors can see general trends or information specific to a particular period. This duality is possible with the hover feature which brings detail to the foreground when selecting segments of a graph.What’s more, many of the charts and graphs are customizable in terms of how you want to see the data.

In the coming weeks, we’ll offer more insights to the data and how best to use it for wise investing choices.

Understand Secondary Market activity with new statistics chart

The General Statistics page offers a broad overview of the total activity across the Bondora platform. This is a great place for new and existing users alike to get a holistic view of loan performance, loan statuses and borrowing purposes.

Secondary Market statistics

At the bottom of the page you’ll notice a new Secondary Market Statistics chart. This chart providers investors with an up to date analysis of the activity within our Secondary market. The historical information ranges from March of 2013 right up to the current month. The color breakdown of totals separates par value, discount and premium. This segmentation offers insight to the changing composition of the totals.

With this chart, investors will notice that the par value has steadily grown over the years as a proportion of the total. Moreover, the total value has experienced a sharp increase over the last 3+ years. We believe this indicates the robustness of the marketplace lending industry in our regions.

Simply hover over the individual bars to see the specific total in euros of each of the three components. You can also toggle to a simplified view by clicking “By Number.” This option illustrates the trend in the total number of investments across each category. As usual we remain committed to a transparent framework that empowers our investors with a range of current, easy to use analytics.

Everything you need for tax season in one place

Preparing taxes might be difficult for some, Bondora makes it easy with customizable reports.

You can get everything you need for tax season from the Reports page on our site. Most investors will want to focus on the “Tax Report” and the “Income Report.” Choose the necessary date range and generate the reports.

Tax Report

This PDF clearly lists all important balances and transactions within your account. Tax Report consists of two parts -summaries of income statement and account statement. In the “Income statement” section, you will find a breakdown of the gross income for the selected period. This section also includes interest received and profits. Those who want to drive down tax liability with deductions can use this report to get totals for principal write-offs, losses and fees paid.

Tax Report - Income Statement

The included “Account statement” lists all critical category totals including, deposits, withdrawals, principal repaid, interest received and more. For basic users this report alone will reflect most, or all of the pertinent data to prepare a tax return.

Tax Report - Account Statement

Income Report

Unlike the Tax Report, this data is generated in a CSV file for easier processing. This format is particularly useful to those with varied holdings. This comprehensive view shows category totals for more specific areas like bought principal and amount paid for bought principal (secondary market transactions), write-off or debt servicing cost components, paid sales fees among other data points. Investors seeking ways to isolate specific totals within their investments should start with this report. Additionally, the CSV format is perfect for those who want to cover a longer date range, then create subtotals within one sheet.

Income Report

Take the stress out of tax prep and use these one-stop reports to get the full picture.

Upcoming changes and improvements to the Statistics pages

Next week, we will release changes to improve the usability of our public and private statistics pages. The end result will be a more holistic view of the most critical aspects of investor’s holdings. Let’s take a look at what’s new.

Bondora Statistics page update

Pie charts are segmented

In both the Public Statistics page and the Private Statistics page you will notice that we have segmented the pie charts which reflect “loan purpose”, “loan status”, “loan rating”, “country”, and “bid size”. Previously this information was viewable only one at a time. That is, each pie chart could only be viewed in isolation from the others. Now, you can see all of this data in one concise view to get a more complete overall picture of your investments.

“Loan status” pie chart is customizable

We have also added a customizable feature to the “loan status” panel. Click on the top left gear icon to adjust the settings. You will be able to view the chart by balance rather than just by schedule. In doing so you can opt to view the total information by status (e.g. current, overdue, 60+ days overdue and repaid). We have added this same feature to the “investment quality per month” data. Users can isolate the portion of loans that are current or overdue. This enables a simpler reading of the loan performance over the long-term. The same feature is available in the Public Statistics page.

Customize the Statistics page layout to your needs

Finally, you can use a new feature to prioritize the size and location of the pie charts in the private statistics page. Just click the tiny arrow in the bottom right corner of each pie chart panel to expand the data. Use the drag and drop feature to rearrange the order of the charts. We’ve also added a setting to add/remove the statistic widgets from or to the view. This can be done from the settings icon on the top right corner of the view.

As always, we look to our users for feedback on changes to the platform. We welcome questions and suggestions on new and improved features to investor@bondora.com.

Why isn’t the Portfolio Manager investing my funds faster?

Bondora investors often ask why their Portfolio Manager is not investing funds or investing at sufficient speed. The reason is the popularity of the higher rated loans. Naturally, many of our investors are eager to fund borrowers with a less risky credit profile. Resultantly, the AA, A, and B rated loans are exceedingly popular. With competition for these investments so high there are only so many opportunities to go around.

As we recently discussed in our latest portfolio performance review, the AA and A rated loans, which are available only in the Estonia market, have since Q1 of 2015 delivered realised net returns of 12,59% and 12,08% respectively. This combination of a substantial return and lower risk is attractive to all our investors. B rated loans in Estonia and Finland for the same period has generated realised net returns of 15,04% and 7,39% respectively.

To better understand the relationship between the supply and demand of high-rated loans, we calculated a variable that reflects the bid competition for each rating. Simply put, we take the total number of bids made per rating and divide by the total winning bids per rating.

Competition is high for lower risk loans

In the graph below, the steep decline of this curve represents the strong competition to fund higher rated loans versus those carrying more risk at the right side of the graph. Most notable in this data is the big drop in demand between AA and A rating. The other takeaway is that higher competition starts with the B rating. The competition factor can be loosely divided into two groups – high competition for AA, A, B rating loans and lower competition for C, D, E, F, HR loans.

Bid Competition Factor per Bondora Rating

Small bids are often outbidded

For investors this means that the likelihood of getting invested into AA-B rating loans is better when they raise the bid sizes in their Portfolio Manager settings. Portfolio Managers with minimum or small bid sizes trying to invest into AA-B or even C rating loans often tend to be pushed to lower position in the investment priority list, being outbidded by higher bid amounts. As a result, lower bids are left out of the investment. This is why some investors may experience their Portfolio Managers not investing their funds in desired speeds. The best strategy is to stay in the market and adjust your Portfolio Manager strategy or settings.

Changes to Bondora notifications and emails

Since the beginning of this year, we have been sending our investors a new-look daily summary email with concise overview of all the important account related information, performance data and news. The revamped email structure aims to make the account related information more accessible and visible to the investor by bringing it all into one place. This also mimics the same principle used in investor Dashboard.

The primary goal for changing our email and notification logic was simplification and reducing duplication. In order to advance this goal, we will also be removing the Private Inbox feature from the investor user interface. Our statistics has shown that the Private Inbox feature usage among investors has been very low for a while now and with the recent changes it has become redundant in the current form. Private Inbox will be removed from the user interface on February 6, 2017.

Private Message Inbox

To give a better understanding of what the new Daily Summary email entails, let’s take a look at the information covered in the email sections below.

Example of Daily Summary email

Account status notifications

The topmost section of the email is reserved for status notifications. These status messages are triggered by events or actions related to your account. For investors, these messages are meant as guidelines about what actions are expected from them. Here you will see messages about incomplete ID forms, or an alert that there are no funds to invest etc.

Account Summary for Yesterday

This is a quick outline of all transactions occurring in your account on the previous day. This is the best place to look for recent information.

Account Overview

This is a holistic view of your account providing information on three aspects of your holdings:

  • How is your portfolio performing?
  • What is the total value of my portfolio?
  • How much have you earned to date?

Recent Posts from the Blog

Keep up to date on our latest posts. This section includes links to the five latest posts on Bondora blog.

Latest Blog Post in Full

We provide the complete content from the latest blog post so you can stay informed without having to leave the Daily Summary.

Payment Details

We offer payment details in the email so it would be easier for you to make deposits to your Bondora account from your bank.

Refer-A-Friend information

We include your automatically generated referral link for easier sharing. The same link is also available on you investor Dashboard under the Refer-A-Friend tab. Remember, the average earned bonus per investor has been €168.

Market Overview

Here we provide an overview of what is happening in the Primary Market. This section summarizes the loan funding activity.

Using the Account Statement Report

The Account Statement Report is useful to those interested in a minute by minute accounting of their holdings. This customizable data is located in the “Reports” page.

Example of Account Statement Report

As with all reports, you can can set the range by entering a start and end date. The system then generates a CSV report. The data includes a detailed accounting of all inflows and outflows from your Bondora account. The “TransferDate” is a record of when each transaction occurred. Sometimes there are multiple movements within one day. Investors will notice that the “Counterparty” column denotes who is the payer or payee. Outflows will show Bondora as the counterparty while inflows are usually either from borrowers (repayments) or investors themselves (deposits into account).

Summarize transactions by transaction type

You might also get useful insight by looking the “Description” column in combination with “Amount“. By using filtering options on “Description“, you can see the aggregated sums of all transaction types for given period, for example investments (bids) into loans, principal and interest repayments, deposits into account, secondary market sales etc. Principal payments are recorded as “TransferMainRepayment” or “TransferPartialMainRepayment“, interest payments are “TransferInterestRepayment” or “TransferExtraInterestRepayment“.

Finally, the “BalanceAfterPayment” is the available and reserved balance of your account after the transaction. Keep in mind that the report always displays full days data, so if you generate the report today, it includes data until the end of previous day.

This report is a good solution for those seeking an audit of their account. This information underscores the importance of remaining invested. By staying in the market investors can continue to pursue aggressive returns that will compound over time.

Why are there irregularities in the cash flow payments?

Investors occasionally notice discrepancies in the received vs planned cash flow payments in the Cash Flow page. These discrepancies can move in both directions. That is, sometimes the received payments exceed the planned total and sometimes the received payments fall below the planned amount. In most cases the difference is due to failed or late payments on the part of the borrower. Below we explain the most common reasons for these irregularities.

Borrower does not have enough funds on Bondora account

On a given day the borrower may not have adequate funds in their Bondora account to satisfy the required total. As a result, the funds that are available are distributed among all of those holding a note.

Example of borrower payment schedule

Borrower payments are delayed

Our increased recovery efforts and in-house collection process works to resume late payments. So when a borrower becomes in debt we issue reminders and attempt contact with the individual. In many cases the borrower then transfers the necessary funds into their Bondora account. Shortly after, Bondora withdraws the required payment and issues it to the investors accordingly. At times, this results in a payment amount that’s lower or higher than the planned sum in the Cash Flow view. Why? The payment delay leaves a deficit in the cash flow for the planned payment date. But when our collection process ultimately pushes the required payment through the system, a surplus is created for a later date when no payment was expected.

Irregularities in the Cash Flow grapgh

The loan has defaulted

Though we work to prevent defaults, they do occur at times. When a borrower fails to pay and our reminders and outreach do not help, the planned cash flow is no longer in play. In this case we work to restore the cash flow as best as possible. When the loan defaults, it doesn’t automatically mean that no payments are to be expected anymore. Investors may still receive some payments, though not the original planned amount. Eventual payments can come sporadically and not on schedule.

Payment schedule after loan default