European investment platform Bondora says that it continues to solidify its position as a trusted name in online investing.
Marking the seventh anniversary of its flagship product, Go & Grow, Bondora has shared an update that highlights its growth and commitment to investors.
Go & Grow, launched in 2018, claims to have transformed the way investors approach peer-to-peer (P2P) lending by offering stable returns.
Bondora reports that over 96% of its investments are now made through Go & Grow.
The product provides automated diversification across multiple European loans, generating daily returns, and liquidity, as it aims to appeal to both novice and seasoned investors. Bondora’s says that its commitment to transparency is evident in its recent update addressing loan defaults, a critical aspect of P2P lending.
A loan is considered in default when payments are over 90 days overdue, triggering recovery efforts.
Bondora reports that it recovers up to 70% of defaulted amounts in some markets, demonstrating robust risk management.
Since Q3 2023, the platform has reported its widest-ever spread between loan defaults and interest charged, particularly in high-performing markets like the Netherlands.
This improvement is attributed to enhanced underwriting models and improved risk frameworks that seek to ensure stable returns for investors.
The platform’s Chief Credit Officer, Juris Rieksts-Riekstiņš, emphasized that Bondora’s current portfolio approach, shaped by lessons from the COVID years and regulatory challenges like Finland’s interest rate caps, prioritizes sustainable long-term returns.
The forecasted internal rate of return (IRR) consistently exceeds the 6% Go & Grow target, even after accounting for defaults and recoveries.
Go & Grow reportedly provided investors with €17,097,637.
Loan originations reached €15,360,879, with Finland leading at 64.3% of the market share, followed by Estonia (18.9%), the Netherlands (15.7%), and Latvia (1.1%).