Fellow Finance announced this week that it is now open for investors with a bank account within European Union (EU) or Single Euro Payments Area (SEPA).
Fellow Finance is an online marketplace for high-performing unsecured consumer loans. For investors Fellow Finance offers a possibility to invest in Finland in a totally new high yielding asset class. Fellow Finance takes care of the credit risk assessment of each loan application using multiple, internal and external, data points. Each accepted loan application will get a loan rating from 1 to 5. This helps investors to diversify their portfolios according to their own risk appetite. Also, for non-performing loans Fellow Finance offers a limit to loan loss – investors will get back 70% of the loan capital on non-performing loans.
The platform offers a possibility to invest in high performing consumer loans with limited risk of loss. Effective secondary market offers high liquidity for investments. Investing in Finnish consumer loans through Fellow Finance is now possible for all EU investors. Investors having a bank account in the EU or SEPA area are able to open an investor account in Fellow Finance. The investor and customer service operates also in English.
In order to offer flexibility and liquidity, Fellow Finance has developed an effective and sophisticated secondary market for loans. Investors can buy and sell loans from other investors according to their investment criteria. In the service, investors have the option to get a real-time quote price for the loans they wish to sell at any given time. Selling the total loan portfolio has also been made possible and easy to execute.
“Our platform has gained thousands of investors in a short period of time in Finland and we are delighted to be able to offer our platform also for European investors. I believe our platform is very competitive in P2P lending space and offers a great opportunity for investors to invest in a high-performing asset class with a steady cash flow and very little volatility. The next step will be to open the cross-border borrower side of the service so that borrowers across Europe can start using our platform.”