New licenses help Mintos market loans to retail investors
The big banks may still dominate the lending industry, but they are no longer the only providers. Peer-to-peer platforms persist and evolve. Alternative lenders are growing rapidly.
In August, Mintos – by far the largest European market for investing in loans – obtained investment firm and e-money institution licenses from the Latvian regulator, the Financial Markets and Capital Commission (FCMC) .
Over the next few months, it will expand its operations across the EU, providing more retail investors with credit exposure from 70 non-bank lenders to individuals and SMEs in 34 countries around the world, including emerging markets in Africa, Asia and Latin America. .
Mintos has funded € 7 billion in loans since its inception in 2015 and says the 430,000 investors using its platform have achieved high average net annual returns in a world of record rates.
Martins Sulte, co-founder and managing director of Mintos, told Euromoney: “It is not super-descriptive to talk about averages. A loan to a consumer in Indonesia or Uganda is very different from a loan to a UK lender or an SME in Spain or Denmark. And you can have high risk loans in low risk countries. But the overall average annual return after bad debt is between 8% and 10% for the current offering on Mintos. “