Fellow Finance ​News ​Archive

The year 2017 was a year of fast growth and yield

21.12.2017 14:20

The year 2017 has been a year of fast growth and development for Fellow Finance, the biggest crowdfunding platform in the Nordic countries. We launched two new investment options for our investors, developed our investing platform functionalities and became the first Finnish crowdfunding and peer-to-peer service authorized as a payment institution by the Financial Supervisory Authority of Finland. The payment service authorization will create more structured operating environment for the entire crowdfunding industry and thus strengthen confidence and trust in crowdfunding as an alternative investment and financing option.

Our investors have gained a steady and high annual return for their investments on our platform. The average annual return of investment has been 10%. We are offering an easy way to invest in business and peer-to-peer loans for everyone and free of charge. Why lend money at low interest rate to a bank when you can now lend it directly at a higher interest rate?

Returns-of-lending
Important milestones in 2017

  1. We processed over a million Finnish, Polish and German consumer loan applications and over 4 000 Finnish business loans applications. The number of borrowers grew by over 140% from 2016.
  2. Our investors invested in loans EUR 100 million in 2017. The amount of funding transferred through our marketplace grew by more than 1​20% from 2016.
  3. We opened two new investment options: German peer-to-peer loans and Finnish short-term business loans called invoice funding.
  4. Voluntary payment protection insurance was launched for Finnish consumers to provide assistance for repayment of a loan in a case of unemployment, long-lasting sick leave or death.
  5. We developed and renewed our investing operating system and now we dare to claim it to be the best in Europe.
  6. In 2017, Fellow Finance was granted payment institution authorization by the Financial Supervisory Authority of Finland.

Two new investment options for investors

In September this year, we opened the German peer-to-peer market in cooperation with Wirecard Bank. The opening of the German market is a part of our strategy to provide our investors the opportunity to invest in business and peer-to-peer loans with a geographical risk diversification. From now on, investors can invest in Finnish long-term and short-term business loans as well as Finnish, Polish and German peer-to-peer loans.

The second new investment option is the short-term Finnish business, 14-90 days, invoice funding. The fundamental idea of invoice funding is that a company gets funding against its invoiced receivables. This is very interesting investment option due to the rapid turnover rate of invested capital. The average loan period of invoice funding has been only 30 days and the average interest income has been over 7%. The average interest income has been extremely good compared to any other short-term investment product.

Start investing in peer-to-peer and business loans for free

New investor        Old investor

Payment protection insurance to reduce the credit loss risk

Fellow Finance and the world's leading insurance company, AXA, began co-operation by offering Fellow Finance's loan applicants the opportunity to secure their loan with a payment protection insurance for unemployment, long-term disability (sick leave) and death. In addition to the security of the loan applicants, the payment protection insurance protects our investors by reducing the risk of credit loss by securing the repayment of borrowers during the loan period even in unforeseen circumstances.

Further, regarding to the management of the credit loss risk, the risk is limited by the sale of unpaid loans to debt collection agencies in the Finnish and Polish peer-to-peer loans. At present, Finnish loans are sold at a price of 70% of the remaining loan capital and the Polish loans are sold at a price of 30%. Business loans include at least an entrepreneur's own personal guarantee and often a collateral such as real estate or enterprise mortgage in addition.

Renewed investing platform

Investors can analyze their investments more comprehensively and flexibly as well as compare different loan markets with each other on our enhanced investing platform. For example, we offer investors the opportunity to compare the yield of their own portfolio with the average yield of the entire platform and the access to see interest rates and credit losses in every market in real time. Further, investors can see demographic information about borrowers and the financial statements of the company applying for funding to support investment decision.

peer-to-peer-lending

The investor platform also includes a secondary market where investors can sell their loans to other investors. With the help of the secondary market, investors can sell part or whole loan portfolio quickly if the capital is needed for other purposes.

We dare to say that our service is currently the most advanced crowdlending and peer-to-peer lending platform in the Europe with its features offering our investors an unique opportunity to invest in consumer and business loans in large volumes. Running an investment account and investing in loans is free of charge. No opening, monthly or subscription fees. Loans sold in the secondary market are charged with 1% of the total loan capital. Moreover, the yield of loans does not correlate significantly with the stock or bond markets meaning that if you are not yet our investor, we recommend that you start now investing in peer-to-peer and business loans to acquire decentralization for your investment portfolio.

Start investing in peer-to-peer and business loans for free

New investor        Old investor

How do I start investing?

1. Register to our service for free and choose whom and on what terms you would like to lend your money. You can invest manually in loan applications or/and open a loan allocator that invests automatically in those loan applications matching your lending criteria. We recommend that you construct your investment portfolio at least of 100 loans to gain sufficient diversification. You get 100 loans to your loan portfolio with an investment of 2500 €.

2. A loan agreement is created between investors and a borrower when the borrower accepts the loan offer. Fellow Finance takes care of all necessary administration between parties involved.

3. Repayments and interest rates are paid back to investors monthly, which can be re-invested in new loans to enjoy compound interest.

4. You can withdraw part or entire capital invested loans whenever you want by selling loans on the secondary market. On our investing platform, you have always access to real time data of your loan portfolio. You can also benchmark your loan portfolio towards all other investors.


Start investing

If you got interested in productive investing based on interest rate, but you still have open questions in your mind, we will be happy to answer your questions by email at: customerservice@fellowfinance.fi or by phone at +358 203 80101. Productive year of 2018!

Finnish Fellow Finance is the largest crowdfunding platform in the Northern Europe and the first one that offers both peer-to-peer-lending service to consumers and loan-based crowdfunding to companies. By the end of 2017, Fellow Finance has intermediated loans over EUR 190 million for 270 000 loan applicants from more than 6 000 investors from 43 different countries. Investors can invest in Finnish, Polish and German peer-to-peer loans and Finnish long-term and short-term business loans on our marketplace. Fellow Finance Plc is regulated by the Financial Supervisory Authority of Finland as an Authorized Payment Institution.

Fellow Finance is an intermediary of peer-to-peer and business loans. Fellow Finance does not provide any investment advices or recommendations. When making an investment decision, an investor will base his decision on his own assessment and take into account his own goals and financial situation. Historical development is not a guarantee of future returns.