POSTS FROM VIDEO SUMMARY:
- Net returns across Bondora have steadily been in high teens for the past 7 years.
- Country-level performance has been positive across all countries since January 2015.
- Returns on Estonian originations have been stable with a slight downward trends as overestimated risk buffers have been reduced in pricing.
- Returns on Finnish and Spanish loans have been increasing through a combination of higher interest rates and improved risk models.
- Risk-grade level returns across countries is converging as risk and pricing models mature.
- Future country-level returns are expected to better reflect differences in customer profiles in specific countries. Estonian loans are expected to deliver lowest yields whilst Spanish ones highest.
Last week was relatively quiet in the industry. Main highlights are news that Goldman Sachs is nearing the launch of their online lending service and Amazon launching a partnership with Wells Fargo in the US. In the UK Financial Times discusses why alternative finance platforms should become banks. Financial Times also shares the thoughts of the new head of the FCA who believes that peer-to-peer lenders that market buyback guarantees, provision funds and other forms of fixed interest are misleading investors.
- Recovery rate in Estonia has averaged around 50 per cent under the current process. Legal litigation has recently been combined into the process to further boost recoveries.
- Recovery rate in Finland averages around 30 per cent and similarly to Estonia has been relative stable. Legal litigation will replace the current process in August as the recovery rates were higher under the old process.
- Recovery rate in Spain has remained at around 45 per cent during the current process and is close to the performance in Estonia. Legal litigation will also be used in the future in a combined process to deliver highest possible recoveries.
The Supervisory Board is currently composed of three directors appointed by the general meeting of shareholders. The three members are Joao Monteiro, Mati Otsmaa and Phil Austern. Read more on Bondora’s Supervisory Board structure and background from the blog post.