Bondora reports that the month of October 2023 saw a rebound for originations and investments.
Bondora notes in a blog post that after decreasing slightly in September, investments and originations rebounded in October. Both these statistics “totaled just over €15M, with a growth rate of 4.8% from the previous month. On the other hand, cash recoveries decreased a little, totaling almost €1.6M in October.”
As noted in the update, 602 new investors joined Bondora in October. In the same month, investors “earned over €1M in returns, and the total product investment amount increased to €884M.”
Loan originations rebounded after their slight dip in September, “increasing by 4.8%. This totaled €15,696,033 in October, compared to €14,177,543 in September.”
Once again, there was an overall decline, but Finland managed “to show an increase.”
The Nordic market’s originations “grew by 20.7%. This totaled €12,146,156 in Finnish loan originations alone.”
In local Estonia, loan originations “dipped by 4.5%, totaling €2,247,956.”
Due to internal changes to ensure sustainable growth, the Dutch market “received a lower origination total of €1,261,208.”
After showing growth, they’ve scaled back slightly “to ensure that borrowers from this relatively new market remain of the highest quality.”
Bondora’s existing customers “were the driving force behind the €40,713 loan originations from Spain in October.”
The Spanish market remains temporarily closed “to new customer originations as we monitor data to change our internal risk-scoring models. In mid-October, we also temporarily closed loan originations to existing customers. This remains a temporary measure, and we will continue further research and analysis.”
Bondora explains that they do this “to ensure the best possible quality for their loan portfolio, which means a better investment experience for you.”
Finnish loans, once again, “have the majority, with a dominant 77.4% share. Estonia reclaims the second-largest share, with 14.3%. The Netherlands follows in third place with 8.0% and Spain with 0.3%.”
The average loan interest rate dropped “from 19.6% to 19.0%.”
Investment product funding
Recovering from a slight dip in September, they saw “an investment product funding increase of 4.8% in October.”
This brought the total funding “into investment products to €15,696,033.”
€15,652,266 was funded to Go & Grow and €43,767 was “invested using the API.”
That’s a 4.9% growth rate “for Go & Grow and a 25.9% decrease for API investments.”
Secondary Market
Bondora says they continue “to see the up-down trend that’s been the norm since May. After decreasing in September, the total value of transactions increased again in October.”
Transactions totaled €105,961 “in October, climbing 14.7% from September.”
This rise was mainly due to an increase in manual transactions, which “increased by 29.8% and totaled €69,858. The API, however, decreased by 6.4%, totaling €36,102.”
At a 65.9% share, manual transactions continue “to have the biggest share. The API has a 34.1% share.”
Collection and Recovery
In October, we recovered €1,679,414 “across all our loan markets. This translates to an 11.6% decrease from September, but it still showcases a great effort made.”
Once again, Estonia was the market “with the highest cash collection, with €977,517 recovered. In Finland, cash recoveries totaled €600,151. In Spain, we recovered €101,696. This is the only market that increased in October (19.2%). In the Netherlands, we recovered €50.”