Fellow Finance ​News ​Archive

What if you would be a banker?

23.01.2018 15:58

Could I really become a banker in 2018? At our marketplace anybody can start investing in private consumer and business loans - an investing option that has previously been available only for banks. This is possible through our secure and cost-effective internet based marketplace where private lenders and borrowers meet each other without traditional intermediates.

Did you know that if you have a bank account your money has been already invested in private consumer and business loans? By taking a large perspective, you as a bank deposit holder act unwillingly as a lender because your bank lends your money further and gives you only a small portion of the profit as the interest for your deposit is much lower than the rate bank has lent your money further. Basically, if you have extra money laying on your bank account, you have delegated to the bank the task of thinking about how to make the best profit for this deposit money.

Why lend money at low interest rate to a bank when you can now lend it directly at a higher interest rate? In our service the bank as an intermediary is removed and you self can choose your interest target for your spare money. Therefore, the depositor or what we call as investor receives the entire interest yield from the lending, without the "brokerage fees" redeemed by a bank. Like a bank, the investor should diversify his money to as many loans as possible to minimize the risk of credit loss from a single debtor. We recommend investing at least in over 100 loans within a loan market.

Register for free

Registration for the service is free and does not require you to start investing in loans. As a registered investor you have access to our online marketplace where you can study the loan applications more closely to get more details from the service.

Why Fellow Finance

Finnish Fellow Finance Plc is the biggest crowdfunding and peer-to-peer lending service in the Nordic countries. More than 6100 investors from 43 different countries have tried and accepted our alternative investing product as they have invested in loans more than 200 million euros. Fellow Finance is regulated by the Financial Supervisory Authority of Finland as an Authorised Payment Institution. The corporation is owned by its founders and the financial corporation named Taaleri Plc listed on the Helsinki Stock Exchange.

  1. High annual return
  2. Decentralization of the portfolio
  3. Limited credit risk
  4. Affordable investing
  5. Secondary market

High annual return

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%.


Decentralization of the investment portfolio

Fellow Finance is the only marketplace in Europe where investors can invest in private consumer and business loans through one online service. In our service you can invest in Finnish, Polish and German consumer loans and Finnish long-term and short-term (14-90 days) business loans. We offer you an unique opportunity to diversify your portfolio by geography and duration.

The yield of loans does not correlate significantly with the stock or bond markets meaning that consumer and business loans are effective ways to acquire decentralization for total investment portfolio.

Limited credit risk

The credit risk is limited as the unpaid Finnish and Polish loans are sold to debt collection agencies if the loan remains unpaid for 90 days. 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. Further, regarding to the management of the credit risk, Finnish consumers are provided opportunity to secure their loans with a payment protection insurance by a collaboration of one of the leading insurance corporations named AXA.

Affordable investing

Our service is free of charge for those who invest in loan applications - no opening, monthly or subscription fees. Only 1% fee on the loan capital of the sold loan on the secondary market.

Secondary market

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.

How to try out the service?

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.

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. These can be re-invested in new loans to enjoy compound interest.

4. You can withdraw part or entire capital invested in 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 for example benchmark your loan portfolio towards all other investors.


If you got interested in productive investing but 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. Please do not hesitate to contact us.

Postscript: We will publish a series of lending blogs on our site by the summer. Next we are writing about the most common prejudices against peer and corporate loans. Test our service and stay on the channel so you can get a substantial knowledge from this investing product by the summer.

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 consider his own goals and financial situation. Historical development is not a guarantee of future returns.