The big banks may still dominate the lending industry, but they are no longer the only providers. Peer-to-peer platforms persist and evolve. Alternative lenders are growing rapidly.
In August, Mintos – The largest market in Europe for investing in loans – Investment firm and electronic money establishment licenses guaranteed by the Latvian regulator, the Financial Markets and Capital Commission (FCMC).
Over the next few months, it will expand its operations across the EU, providing more retail investors with credit exposure from 70 non-bank lenders to individuals and SMEs in 34 countries around the world, including emerging markets in Africa, Asia and Latin America. .
Mintos has funded € 7 billion in loans since its inception in 2015 and says the 430,000 investors using its platform have achieved high average net annual returns in a world of record rates.
Martins Sulte, co-founder and managing director of Mintos, told Euromoney: “It is not super-descriptive to talk about averages. A loan to a consumer in Indonesia or Uganda is very different from a loan to a UK lender or an SME in Spain or Denmark. And you can have high risk loans in low risk countries. But the overall average annual return after bad debt is between 8% and 10% for the current offering on Mintos. “