You spoke, we listened – Fractional calculations

What is it?

This is a major update to our system which will ensure an equal distribution of a loan repayment to investors. It’s easy to forget that the loan you funded with your investment is likely to be jointly funded alongside the investments of thousands of other investors – when a borrower makes a repayment to this loan, it’s important that each investors receives an equal amount of that repayment based on their total share of the loan. Even more so, this applies to payments received from our collection and recoveries process too.

Bondora fractional ownership

What are the benefits to you?

  • The even distribution of debt servicing fees – Making it easier for you to manage and keep track.
  • Faster website and services – More specifically the overall speed of reporting, especially for users with a large number of loans.
  • More precise calculations – With results calculated up to 10 decimal points, ensuring fairness for everyone.

Why have we changed this?

You may notice that from time to time, the debt servicing fees applied to your investments in recoveries may not show an even amount each month. The Bondora engineering team has been working hard on an update to the system called ‘fractional ownership’ which will now make all loan repayment distributions equal across all payments for each investor.

Currently, the distribution is equal but the equality is achieved over multiple payments (by recording how ‘unfair’ the previous payment was and then correcting it the following time for the customers who received more or less). Now, such fluctuations with payments will be eliminated.

How does it work?

All calculations regarding past and future investor shares in the cash flows will be based on a loan schedule multiplied with their share (known as fractional ownership) with results calculated up to 10 decimal points. Payments to your Bondora account will also be made in amounts with up to 10 decimal points, however withdrawals to real cash are still limited to 2 decimal points as smaller increments are not yet supported by the traditional banking system (Not surprising…).

Thanks to this, even investors who own a €1 part of a €10,000 loan will always get their fair share of the repayment.

How will this affect your portfolio?

For a small number of investors, the present value of their portfolios will slightly change due to the added precision of the calculations. These changes are extremely small, nevertheless for those whose portfolio value decreases by any amount, Bondora will compensate them the difference.

The average compensation amount will be €0.25 and the largest being €25. With this in mind, the planned principal and interest amounts will also be recalculated in the cash flow reports to reflect these changes. This will be done automatically, so no action is needed from you.

The estimated release date for this update and the compensation is Friday 27th April.

If you have any questions, please get in touch at investor@bondora.com.

24/7 online control for investors – What were we working on in March?

In March, our main focus has been on finishing the development of our new product ‘Go & Grow’ for initial release. Currently, this is still available via invitation-only for existing investors – take a look below for a sneak-peak into some more exclusive information.

Bondora - What we are working on in March

1) Go & Grow

Go & Grow is Bondora’s brand-new and most simple investment method. Go & Grow is a tax efficient, instant liquidity product with a target yield of 6.75% per year. Enjoy the benefits of P2P lending, made even easier. More details to follow within the next month.

2) 24/7 online control for investors

Last month, we told you we were working on automating some common support related queries we receive to make your experience simpler and faster. We’re still working on this, but now you can already complete several changes yourself, they include:

  • Changing your contact number
  • Changing your email address
  • Changing your address details
  • Closing your account

Soon, the verification and identification process will follow suit too. Once completed, investors will have more control to complete time-sensitive actions themselves and ultimately allow our Associates to spend more time helping investors with more complex queries.

3) Distribution of debt servicing fees

For several months, we have been working on the huge task of ensuring the distribution of the debt servicing costs applied to your account for collections are achieved evenly. Currently, the distribution is equal but the equality is achieved over multiple payments (by recording how ‘unfair’ the previous payment was and then correcting it the following time for the customers who received more or less).

After we have completed the improvements, such fluctuations with payments will be eliminated. Based on our progress so far, we expect this to be completed by the end of April and thank all of our passionate investors for their patience with this issue to date.

4) Investor visits

In March, we have had the pleasure of welcoming many of our investors to Bondora HQ in Tallinn, Estonia. Thank you to everyone who has taken the time to visit us – we’re looking forward to those planning to come in April.

An invitation-only product in the pipeline. What were we working on in February?

In February, our main focus has been on automating some support related processes for investors and to make it visible in the user interface, giving investors more control and saving them time.

1) Reporting, statistics and cash flow

While this has not been an issue for all portfolios, we have received some feedback over the recent months that several pages on investor accounts were timing out or simply too slow. Now, we have made improvements to reporting, statistics and the cash flow page to ensure the pages load much faster.

2) Support related queries

Due to an increasing investor base and support queries, we are currently working on making it simpler and faster for you to complete basic changes on your account. This will include:

  • Changing your contact number
  • Changing your address details
  • Enable multiple accounts to withdraw funds to
  • Close/delete your account without having to contact us
  • Improve the identification process so you will not need to contact us to become fully verified

This will help our investors complete what are often time sensitive actions by themselves. Overall, this will reduce the number of queries we receive and allow us to be there for customers who need more support with their investments.

3) A new and exclusive invitation-only investment product

More details coming soon…

4) Still in progress

Bondora still in progress

In previous posts, we told you that we are working on ensuring the distribution of the debt servicing costs applied to your account for collections is achieved evenly. Currently, the distribution is equal but the equality is achieved over multiple payments (by recording how ‘unfair’ the previous payment was and then correcting it the following time for the customers who received more or less). After we have completed the improvements, such fluctuations with payments will be eliminated. Also, to improve the accuracy of our cash flow forecasting tool we are increasing the precision of the ratios used and splitting overdue loans from current loans in the forecasts.

We’re still working on both of these improvements and will provide you with an update next month.

What were we working on in January? New blog languages, cash flow improvements and more

1) Multilingual blog

You may have already noticed that our blog is now available in 3 languages; English, German and Estonian. This was implemented after we received feedback from our investors that they would like to read our blog in their own native language. Along with this, we are still working on converting the full functionality of our site in to 14 different languages to cater for our geographically diverse investor community.

Bondora multilingual blog

2) Improvements to the Bondora API

Last month, we told you that we were making some improvements to the Bondora API. More specifically, we have now increased the maximum results you can get with one query to 20,000 (although 10,000 will stay as the default value). We also added throttling to requests when the last request for the same user and endpoint has not yet completed. Previously, users were polling the same endpoints and the requests were piled up even in the instance that the last request had not finished, which created an unnecessary load and made the overall API experience slower.

Going forward, we will not add any new queries to the queue if a similar query (from the same user to the same endpoint) is already there.

3) Cash Flow Data

Over the past month, we have made some significant improvements to the cash flow data on your Bondora account. Now, all the data is pre-calculated daily and the page should quickly return monthly and daily overviews regardless of the period you choose. An intra-day view is not pre-calculated and can take more time to load opposed to looking at your portfolio from a higher overview level.

Bondora Cash flow

Please note, the data in overview and month levels are pre-calculated daily and any transactions completed today (such as new sales or purchases) are not reflected until the following day.

4) Mobile-friendly pages

The most commonly used pages including your Dashboard, Menu, Portfolio Manager, Invite Friends tab, Portfolio Pro, Withdraw and Add Funds pages are now ready for easy use on your mobile. We still have plans to perfect the view of the Statistics page and at a later date do the same with the numeric pages such as Cash Flow, Reports, Investments and the Secondary market. Now you can check your Bondora account on the go and with no hassle.

5) Still in progress

Bondora still in progressIn December, we told you that we were working on ensuring the distribution of the debt servicing costs applied to your account for collections is achieved evenly. Currently, the distribution is equal but the equality is achieved over multiple payments (by recording how ‘unfair’ the previous payment was and then correcting it the following time for the customers who received more or less). After we have completed the improvements, such fluctuations with payments will be eliminated. Also, to improve the accuracy of our cash flow forecasting tool we are increasing the precision of the ratios used and splitting overdue loans from current loans in the forecasts.

We’re still working on both of these improvements and will provide you with an update next month.

New Dashboard, Portfolio Manager page and more

Over the past few weeks, the Bondora team have been working hard to improve the layout of some of the most important pages on your investor account. This week, we will be releasing a major update to a few important sections which we will cover below.

portfolio-manager-strategy-slider

Portfolio Manager

Your Portfolio Manager now has its own separate page on your Bondora account. Here, you can adjust your chosen strategy and use our calculator to get an idea of your expected return based on a starting amount, monthly deposit and timeline.

Below this, you will find the ‘Sell loans’ feature which you can use to liquidate your portfolio. For more information on selling your loans, check out our top tip on how to successfully liquidate your portfolio.

Bondora-Sell-loans-feature

Dashboard

dashboard-overview-stats

The Dashboard has been simplified to show only the most important figures for your portfolio and the latest news from Bondora, including our weekly video in English, German and Estonian.

Account Statement

Account-statement-view

A common request we have received from our investors lately is to make the account statement page separate for easy viewing. On your cash flow tab, you will now have the option to turn on the account statement option to do exactly this.

The best news?

One of the best things about this update is that you will now find the Dashboard, Portfolio Manager and Invite Friends tab to be mobile and tablet friendly, meaning you can check your Bondora account while on the go with ease.

If you missed the top 5 things we were working on in November, take a look here and see what has changed already.

Remove loans from sale when borrowers make payments

This week we introduced a new feature which allows you to remove your investments from sales when a borrower makes a payment.

One of our investors, Sebastian, reached out to us and told that sometimes the data on loan repayments is not available enough for investors to optimize their portfolios. He wanted a way to remove loans from the Secondary Market at the moment borrowers make any repayments. This option would allow him to not miss out any opportunities when the investments he on sale start reproducing payments.

A new way to auto-manage your portfolio

We thought this feature would be simple yet great improvement for portfolio optimization, so now we’ve now added this into our product. You can use this feature any time you put your investments to sale on Secondary Market.

auto-cancel loan from secondary market

On the Investments page, add investments to sales cart and press the sell button on the top. You will be prompted with a popup where you can see a checkbox called “Cancel item if payment received”. This allows for the auto-cancellation of loans for sale on the Secondary Market if they begin to receive cash flow again.

Why is this useful?

Once you activate the feature, you can be confident that you’re selling loans on the assumption of up-to-date payment information. If any payment is made, the loan will automatically be re-evaluated and cancelled from the Secondary Market sales.

What feature are you missing? Leave us a comment below.

Faster and safer deposits to Bondora with Trustly

Last week we added a new payment method for our investors – Trustly Online Payment. Trustly is a payment method that makes it easy to deposit to Bondora directly from your bank account. It currently supports over 3,300 banks in 29 European countries.

Trustly online payment coverage in Europe

Is it safe to use Trustly?

Yes! Trustly is a licensed payment institution authorized and supervised by the Swedish Financial Supervisory Authority. It uses the highest encryption standard available and never stores any information that can be used to access your bank account.

How to make a deposit to Bondora with Trustly

You don’t need to sign up with Trustly online payment to make deposits and you can complete a secure deposit in 3 easy steps:

  • choose your bank and initiate the payment with your regular online bank credentials;
  • select the account you wish to pay from;
  • confirm the payment with your regular online bank credentials.

 

Make a deposit with Trustly

Be a Pro, with Portfolio Pro

We are excited to announce the launch of a new feature called “Portfolio Pro”. This has been developed based on the feedback received from the Bondora investor community over the recent months, so we would like to take this opportunity to say thank you to everyone.

Bondora Portfolio Pro

What is Portfolio Pro?

Simply put, it is a tool for people who like to have more control over the level of diversification in their investments. You can now use this Pro feature to create a portfolio according to your own rules. For example, you may choose to select loans from specific countries, with different duration and Bondora risk ratings.

Last week, a small number of investors opted in to trial this new feature and this is what they had to say:

This is exactly what I’ve been waiting for. Tnx!’ – Daan

‘Good feature!’ – Robert

‘Thank you for this initiative. I would definitely use Portfolio Pro for first market investments if the feature remains free of charge and the API is continued’ – Holger’

How much does it cost?

It’s free! Unlike many other platforms, investing with Bondora is free and using the new Portfolio Pro feature is exactly the same. Enjoy!

What next?

Make sure to have a look at the new section on our support page for an informative guide and some frequently asked questions.

Don’t forget to subscribe to our blog and check us out on social media, you can be sure you won’t miss out on any future announcements and special updates.

To get started, simply log in, click on the Portfolio Pro link in the menu and get started today!

With thanks from everyone at Bondora!

We’re removing all fees from the Direct Sell feature

Just over a two months ago we released our Direct Sell feature, allowing investors to sell loans directly to other investors from their Investments page. Direct selling also means investors can sell an entire portfolio of loans to other investors or even consolidate their own holdings.

Now we’re making direct selling even easier. Were removing all fees for using this feature.

no fees for direct sell feature

Previously there was a fee associated with all Direct Sell. By removing this cost to investors we’re making it easier than ever to explore the full range of options when investing on Bondora. We believe in empowering investors to earn the best possible return and removing fees is one of the fastest ways to do that.

Check out our new notification feature

At Bondora, we’ve always believed in clear and open communication with our users. This is why we offer easy to access, up to date analytics and customization so you always have what you need.

Today we’re taking that approach one step further.

We have released a new notification feature so you have the latest news on changes and updates at Bondora. This will be a fast, but unobtrusive way for us to keep you informed of things like platform updates, upcoming events, news, campaigns, and of course newest investment opportunities.

You can see all the notifications by clicking on the bell icon on the top right once you’ve logged in. The red dot indicates if new notifications have been added.

Bondora notification feature

Use our notifications to get the most of what we have to offer. As our user base grows, we’re able to create greater functionality and broader investment opportunities for users. Also, be sure to share feedback at any time. We’re always looking for ways to improve the platform and put more ownership in the hands of our users.