My Top 10 p2p marketplaces (per 31.12.2017, part one)

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Ok, it is time again for my semi-annually top 10 p2p marketplace ranking. Actually I wanted to publish it earlier, but hey, even a hero needs a break from time to time ;). The ranking reflects my personal opinion (yours can be different). On my decision several factors had an influence, I am not solely focussed on return. This is my last overview with this layout. I will change it plus develop a scoring model, where some (predefined) factors will have a (wheighted) influence on the total assessment. There is already one new thing: I will split the places 1 to 5 and 6 to 10 in two different posts.

RankMarketplaceYield (XIRR)Link to the posts
1Mintos17.23%Mintos
2Grupeer13.91%Grupeer
3Robocash12.88%Robocash
4Lenndy13.17%Lenndy
5Estateguru10.47%Estateguru

Mintos

Mintos did it and is according to my opinion the best p2p marketplace (jumped from 4 to 1) available at the moment. Even the Eurocent problems could not change anything about that. There is no other platform who has a similar loan supply at the moment. Further there was a 5 cashback scheme in December (currently there is a similar scheme on Mogo loans until February 17th, and one on Lendo until the 18th). So currently the investment on Mintos is lucrative.

Just let us think about the costs such cashbacks genrate. I guess the loan originators and Mintos share the costs, but I don’t know for sure. The whole thing has its impact on profitability, so I am eager to see their 2017 figures. It seems Mintos wants growth at all cost.This cannot only be positive. I can imagine that Mintos never will be overly profitable (or must be). I guess the marketplace is seen as a source of financing by their owners. I will write down my thoughts in a different post on this subject. For what it’s worth, there seems no way around Mintos at the moment.

Grupeer

No change on rank 2 versus mid year 2017. Grupeer is still flying below radar in my opinion. Mostly you get 14% interest rate, sometimes additional 1% cashback on top. They have developped and rolled out a new product (Russian SME loans) successfully. They did not increase their business much more as they first look to set up everything in terms of regulation. This makes sense as this is the basis for more growth. Given the small number of loans I can ignore the fact that there is no auto invest so far. I track all repayment dates in my calendar. If there is a premature repayment I get a hint by email from support. So I am ok with that for the time being, but I expect something to be done in this regard in 2018.

Robocash

Well, Robocash loses 2 places and still gets away with bronze. Occasionally there was a drought in new loans, so we had a cash drag. At the time being the situation seems to have eased. The handling was never quite easy when changing the portfolio, I had to intervene manually (this is better now). Should you by accident have kicked in the withdrawal mechanism, it could have resulted in multiple payments (from EUR 50 on) which you really didn’t wanted. Further a loyalty scheme for the first 1k investors was announced, but never materialized (at least so far). It is not a big deal and I can life without a goody (especially on 14% yield), but I like to stay informed. I really understand their focus right now on increasing the loan supply further.

Lenndy

Lenndy as well lost one rank, but still stays at the great fourth place. Interest rates are declining since some weeks and are around 12 to 13%, depending on duration. They would like to introduce SEPA payments since months but can’t due to missing IT ressources. So we still need to use Paysera instead a bank account (I do like paysera, just for the protocol). It seems that there were some errors at Paysera during 2017, which led to a CEO replacement. This has nothing to do with Lenndy, but I think investors should know (our funds were always safe though). Positve is the loan supply, there is always something to invest in. In case of delayed loans, the platform provides regular updates which is nice. I like to be informed if something does not go according to plan.

Estateguru

The only «true» p2p marketplace in the top 5 gains one rank, congrats Estateguru. The loan book has increased drastically while interest rates remained the more or less the same. They created a information system which now shows to ivnestors, which measures were taken when a delay occurred. There is room for improvement though as it looks like that sometimes no action is taken even if there should have been one. Further there are loans which are clearly delayed for more than 45 days and should be marked as “default” which does not happen. But we could see that the first loan which did not pay back for a long time was auctioned. After one week the property was sold and investors got their principal plus interest back. This is great as it shows that mechanisms in place plus valuation work (even though the borrower finally paid)! Hopfefully this will be the same with coming loans (although I do not hope we need to test this too much all 😉 ).

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