A temporary slowdown in originations in June gave way to an off-the-charts month in July. Originations skyrocketed during the month, with Spain leading the charge and pushing Bondora originations to new all-time high levels.
Spanish Originations on the Move
Total originations boomed during the month of July, rising 61.2% to a record-breaking total of €15,418,245. It was originations out of Spain that completely broke new ground over the month, jumping from 11% of total originations to 27% in July. Spanish loan originations totalled €4,163,390 over the month, a massive 286% increase. Estonian and Finnish origination totals also increased compared to last month (EUR), by 21.2% and 43.8% respectively.
The biggest increase in originations was seen in Spanish F rated loans, which accounted for €2,511,750 in originations in July, or 16.3% of all Bondora originations. Higher Spanish originations coincided with lower originations out of Finland. F rated loans from Finland accounted for only 10.8% of all originations in July, compared to 34.1% of originations in June.
Average Loan Amount
Even as Spanish originations grew, the average loan amount remained relatively stable. The average Spanish loan origination came to €1,972 in July, an increase of only 2.8%. Therefore, the increase in Spanish originations came from more borrowers in total, with 2,102 Spanish borrowers originating loans in July, compared to 562 borrowers in June.
Finnish originations had the largest increase, up by 5.7% to €4,622, while originations out of Estonia were relatively unchanged.
Finnish loan durations dropped to an average of 51 months, below the 56 month average in June. The average Spanish loan duration grew to 52 months, its highest average in the past three months.
Changes in borrower incomes
Borrowers across all three countries had lower average incomes than in June. Finnish borrowers average income decreased to €2,599 in July. With Spanish borrowers, the average income came in at €1,555. Monthly incomes in Estonia remained the lowest of all three countries, with borrowers averaging €1,262 per month.
Trends in borrower education level remained relatively similar to previous months. The majority of Estonian and Spanish borrowers have a high school education, while Finnish borrowers trend toward having a vocational school education.
There was an increase in the rate of Bondora borrowers employed for longer durations. In July, 40.4% of borrowers were employed for more than 5 years, compared to 39.1% a year prior. Another 27.7% of borrowers were employed up to 5 years.
Home Ownership Status
There was no statistically significant change of home ownership status for borrowers out of Finland. More Spanish borrowers (26.5%) are living with their parents, while slightly more Estonian borrowers (44.8%) are homeowners.
Even with a large influx of Spanish borrowers over the month, the vast majority of them were verified by Bondora. 99.3% of Spanish borrowers were verified on the month, up from 95.6% in June. Verification rates for Estonian borrowers (43.9%) and Finnish borrowers (65.4%) did not have a significant change in July.
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