Mintos Insight, a monthly publication that covers what’s been happening on the Mintos platform, including wider market activity, educational topics, and other updates, has been released.
As mentioned in the report, the Fintech sector has already “staked its place in the finance industry, but its growth is far from over.”
Fintechs continue “to pioneer financial inclusion in the global finance industry, providing services to a significant number of women, plus first-time and low-income borrowers.”
“Green financing” is being “relied on to help achieve the world’s sustainable development goals, and the Fintech sector is a key player in making this movement successful,” the report added.
The update from Mintos also mentioned that Open Banking is “growing worldwide, and although it has many advantages, the seamless sharing of data for loan applications is a significant benefit.”
Last month, investors on Mintos “earned around €2.2 million in interest at an average rate of 11.8%.”
Although the Fintech sector has already staked its place in the global finance industry, its growth is “far from over,” the team at Mintos claims.
In 2022, the benefits of Fintechs have “continued to evolve, as the sector has been supporting those in need (when traditional finance institutions haven’t) and creating more sustainable finance solutions.”
Economic pressures (the Covid-19 pandemic, inflation, and rising interest rates being just a few) have “resulted in challenging times for lenders and borrowers.” The report from Minto added thatt traditional lending institutions have “tightened the purse strings (even more) to reduce risk, leaving individuals and businesses in tough situations.” Digital lenders, on the other hand, have “continued to be a source of support.”
They are “at the forefront of inclusion initiatives worldwide, especially in emerging and developing economies, by providing services to a significant proportion of first-time, low-income, and female borrowers.”
During the Covid-19 pandemic in Europe, first-time borrowers “accounted for over half of the loan origination values for digital lenders in 2020 alone.”
The update pointed out that the digital lending sector is “expected to grow significantly.”
Globally, the P2P/marketplace consumer lending model “remains the largest in the alternative finance sector.”
According to Future Market Insights, the P2P/marketplace lending market is “forecast to grow by around 15% per year over the next 10 years.” And it’s this model, in particular, that’s “responsible for most of the digital lending to first-time, low-income, and female borrowers.”
The report further revealed that in July 2022, “around 190 000 loans were funded, equivalent to €35 million, and investors on Mintos earned around €2.2 million in interest at an average rate of 11.8%.”
The top 3 markets for investments in loans were: Latvia, Spain, and Estonia.
Peteris Mikelsons, Head of Partnerships at Mintos, said:
“During July, almost all lending companies were transferred to the new regulated investment firm set up offering Notes. Outstanding investments stood at the €330 million mark. The supply and demand interaction for Notes started to normalize, yet the supply still outpaced the demand, leading to an increase of the average interest rate for Notes to 14.5% (in EUR).”
For more details on this update, check here.