Compare P2P lending (Update Jun 2019)

In this post I plan to update the P2P compare table and explain the reasoning behind this update.

Investment security rating issue

Over a longer period of time I understood that I need to change something in the way I compare investment security in different platforms. Currently, I have Buyback guarantee as a measure. I give 5 points if platform has Buyback or 0 if it does not.

Platform Final score Avarage interest rate Buyback guarantee Yes – 5, No – 0 Invested volume Auto-invest Personal user experience
Mintos 38 11.73% Yes – 5 2000 - 10 Yes - 5 6
Envestio 34 18.73% Yes – 5 15 - 0 No - 0 10
Fast Invest 32 14% Yes – 5 13 - 0 Yes - 5 8
Twino 29 10.20% Yes – 5 473 - 4 Yes - 5 5
Crowdestate 26 18.73% No – 0 61 - 1 Yes - 5 1
Grupeer 24 14.25% Yes – 5 27 - 0 Yes - 5
Viventor 23 12% Yes – 5 77 - 1 Yes - 5
Swaper 23 12% Yes – 5 62 - 1 Yes - 5
Robocash 23 12% Yes – 5 58 - 1 Yes - 5
PeerBerry 23 12.02% Yes – 5 66 - 1 Yes - 5
FinBee 21 16.00% No – 0 20 - 0 Yes - 5
Iuvo 21 9.50% Yes – 5 53 - 1 Yes - 5
BulkEstate 20 14.27% No – 0 5 - 0 Yes - 5
ViaInvest 20 10.05% Yes – 5 6 - 0 Yes - 5
EstateGuru 19 12.24% No – 0 108 - 2 Yes - 5
Bondora 19 10.6% No – 0 201 - 3 Yes - 5
Zltymelon 19 8.9% Yes – 5 12 - 0 Yes - 5
BitBond 18 13% No – 0 15 - 0 Yes - 5
DoFinance 18 8% Yes – 5 22 - 0 Yes - 5
Crowdestor 15 15% No – 0 3 - 0 No - 0
Flender 15 10.4% No – 0 2 - 0 Yes - 5
Housers 12 10.56% No – 0 82 - 1 No - 0
Lendix 9 5.81% No – 0 279 - 3 No - 0

However, there are platforms which for various reasons do not offer Buyback guarantee. As it is in the current comparison, I do not consider other means of securities, like collateral, personal guarantee or partial Buybacks.

This is somewhat like comparing apples with oranges.

Platforms are built differently when it comes to securing investor money. The differentiation has always been there, it is just me who discovered it later by stumbling across various platforms.

Most often we can talk about Buyback guarantees when we have peer to peer (P2P) consumer loan lending platforms.

There are also peer to business (P2B) loan platforms. I categorize them in two major subcategories – realestate and development project. There are also platforms which do something in between, but for generalization purposes I would like to put them aside for now.

Solution

To mitigate this flaw I introduced a column called “Relative investment security”. This column replaces Buyback guarantee column. Points are given 0-10 depending on evaluation of investment security.

It is called relative because I assume 10 is given for full buy back guarantee. This is debatable, subjective and my opinion only, therefore I put the term “relative”. In the worst case scenario every platform can go bankrupt (see Lendy’s story a few weeks ago). My aim is to use gathered information on loan types, internal ratings, public information availability on securing loans, platform history and defaulted loan history.

In other blogs I saw realestate crowdlending put in a separate table. I prefer to put platforms in one comparison table to keep it as simple as possible.

If you disagree with me, please comment. I believe two independent opinions are always better than one.

Platform Final score Change Avarage interest rate Relative investment security Invested volume Auto-invest Personal user experience
Mintos 46 +8 11.73% 10 2000 - 10 Yes - 5 9
Twino 35 +6 10.20% 10 473 - 4 Yes - 5 6
Crowdestate 34 +8 18.73% 6 61 - 1 Yes - 5 3
Envestio 34 0 18.73% 8 15 - 0 No - 0 7
Fast Invest 33 +1 14% 10 13 - 0 Yes - 5 4
Grupeer 29 +5 14.25% 10 27 - 0 Yes - 5
Viventor 28 +5 12% 10 77 - 1 Yes - 5
Swaper 28 +5 12% 10 62 - 1 Yes - 5
Robocash 28 +5 12% 10 58 - 1 Yes - 5
PeerBerry 28 +5 12.02% 10 66 - 1 Yes - 5
Iuvo 26 +5 9.50% 10 53 - 1 Yes - 5
FinBee 25 +4 16.00% 4 20 - 0 Yes - 5
BulkEstate 25 +5 14.27% 6 5 - 0 Yes - 5
ViaInvest 25 +5 10.05% 10 6 - 0 Yes - 5
EstateGuru 25 +6 12.24% 6 108 - 2 Yes - 5
Zltymelon 24 +5 8.90% 10 12 - 0 Yes - 5
DoFinance 23 +5 8% 10 22 - 0 Yes - 5
Crowdestor 22 +7 15% 7 3 - 0 No - 0
Bondora 21 +2 10.60% 2 201 - 3 Yes - 5
BitBond 21 +3 13% 3 15 - 0 Yes - 5
Flender 21 +6 10.40% 6 2 - 0 Yes - 5
Housers 17 +5 10.56% 5 82 - 1 No - 0
Lendix 13 +4 5.81% 4 279 - 3 No - 0

Personal experience update

This time I also updated the personal experience column. Generally, ratings are bit more closer to each other than I initially evaluated. This of course is subject to change over time.

3 comments

    1. Hi Pinticas,

      first of all thank you for the comment, I appreciate that.

      Could you be more specific or even better, could you please give an example of what you mean?

      As it comes to the risk, I tried to give a combined score in the column “Relative investment security” which now replaces the buyback guarantee.
      Maybe by the track record you mean something on how long the company exists?
      Would be great to hear from you.

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