ID Finance, the emerging markets fintech company, has further diversified investment opportunities on the Mintos marketplace by adding prime personal loans issued under its Solva brand in Georgia. Solva is a fully owned ID Finance subsidiary in Georgia that has disbursed 28,000 personal loans worth EUR 12 million since late 2016.
ID Finance joined Mintos in March 2017, offering investors the opportunity to invest in personal unsecured loans issued in Spain. The average loan issued in Georgia that ID Finance will now place on the Mintos marketplace will be EUR 1000 and have a repayment period of up to 12 months. Investors will be able to invest in Georgian lari (GEL) and euro. The annual net return offered to investors will reach 16%.
Solva uses a unique scoring system built around machine learning, advanced risk assessment techniques, multiple search technologies, big data and text mining. The system also evaluates the device on which the loan application is being filled out and the user’s behaviour when filling out the application. These techniques allow Solva to identify credit-worthy consumers that have been denied loans by banks.
“Solva is an innovative product in global online lending. It was developed for prime clients and offers very attractive terms for personal loans. It closely resembles traditional bank loans, but with a focus on transparency, ease and convenience of service. Thanks to our technological innovation and efficient operations, we can offer investors a high annual net return,” says ID Finance co-founder and CEO Boris Batine.
The loan originator will offer a buyback guarantee for loans that are delinquent for more than 60 days. The share of non-performing loans for Solva is approximately 4%. To retain its skin in the game, ID Finance will keep at least 10% of each loan available on the Mintos marketplace on its balance sheet.
ID Finance group is a fast-growing data science, credit scoring and digital finance provider that is pioneering fintech in emerging markets. The company was established in 2012 and is now the largest online consumer lender in CIS region and a leading one in Europe. Headquartered in Barcelona, the company operates in Spain, Kazakhstan, Georgia, Poland, Russia and Brazil, and plans to boost its presence in Latin America in the near future. It now has over 3.8 million registered customers and has so far issued more than 1.1 million loans worth USD 240 million.
“We are extremely excited to widen our cooperation with ID Finance by adding its loans issued in Georgia to the Mintos marketplace. ID Finance is a fintech company in a true sense of this word – it uses modern technology to significantly enhance financial services and efficiently manage risks. It makes the products of ID Finance an excellent fit for the investors on our marketplace,” says Martins Sulte, CEO and co-founder of Mintos.