MIntos introduced a new lending companies evaluation model, Mintos Risk Score.
At the onset of the COVID-19 pandemic, many existing investors at Mintos, one of Europe’s leading alternative investment platform for investing in loans, decided to abruptly halt or reduce their investing activity while they waited for a clearer economic outlook, writes AS Mintos Marketplace, a joint stock company registered in the Commercial Register of the Republic of Latvia: “Furthermore, the global downturn in 2020 led to a sharp increase in underperforming loans, many of which eventually ended up delinquent. Mintos was quick to react by creating and expanding teams within the company dedicated to loan recovery.”
“Despite these challenges,” reports Mintos CEO and co-founder Martins Sulte, “over 80% of the total funded portfolio sustained their strong performance and delivered a total €53.3 million in interest earnings to investors. This shows a significant increase of 18.9% when compared to the €45 million earned in 2019.”
In 2020, 128,380 new users joined Mintos, bringing the platform to a total number of 369,332 investors from 105 countries. And with an addition of €1.6 billion in loans funded in 2020, the cumulative volume of funded loans grew by 37.2% to reach €5.9 billion.
Despite market ups and downs, the Mintos team focused on continuous service improvements. In January a new lending companies evaluation model was introduced – Mintos Risk Score. To help investors make informed decisions about investing in loans, Mintos expresses findings with the Mintos Risk Score. The Mintos Risk Score is calculated from 4 subscores that they assign for the company’s loan portfolio performance, the efficiency of loan servicing, buyback strength, and legal setup between the lending company and Mintos.