One of the less reported stories about the emergence of alternative finance marketplaces such as P2P lending and real estate crowdfunding is their ability to connect investors and investments from around the globe. In this regard, when speaking with BLender CEO, Dr Gal Aviv, he noted that not only are P2P lending platforms providing access to fixed income investments, but also exposure to deal in numerous regions where yields may be better than in one’s home market.
Continuing that trend, Bondora, an operator of a Pan-European P2P lending platform that lends to borrowers in Spain, Finland and Estonia has recently announced that they now support US investors. Connecting with Jevgenijs Kazanins, CMO at Bondora, he explained that by opening up their platform to investors in the US as well as to other lenders in other developed markets, they are able to provide access to higher interest rates.
Kazanins stated that “While other European peer lenders deliver returns in the range of 3-5%, Bondora operates in the markets with highly inefficient banking systems and limited alternative financing options for the borrowers; thus, ensuring premium returns to investors”.
According to Kazanins, Finland is currently Bondora’s largest market of loans, accounting for 42.7% of loan transactions in the current Q3 period, followed by 35.6% in Spain and 21.7% in Estonia. Among transactions, the average loan amount is €3,450 for a duration of 48 months. Kazanins explained that currently large purchases and home refurbishments account for the largest concentration of loans on the Bondora platform, composing 30% and 25% respectively of total lending.
Opening to the US, the platform is available to accredited investors and is based on Form D filings. The addition increases Bondora’s existing investor base which includes participation from nearly 40 countries including Japan, Canada, Switzerland, India and Brazil.
While Bondora has been rapidly expanding its platform to a global base of customers, the firm also has plans to increase its coverage of lending regions. According to Kazanins, Bondora is “preparing for the entry into new markets”, but he added that it won’t occur during the remainder of 2015.