New licenses are helping Mintos to market loans to retail investors
The big banks still dominate the lending business, but they are no longer the only providers. Peer-to-peer platforms persist and evolve. Alternative lenders are growing fast.
In August, Mintos – Europe’s largest marketplace for investing in loans by far – secured licenses for investment firms and e-money institutions from the Latvian regulator, the Financial and Capital Market Commission (FCMC).
In the coming months, it will pass these on to expand its activities across the EU and enable more retail investors to get exposure to loans granted by 70 non-bank lenders to individuals and SMEs in 34 countries around the world, including emerging markets in Africa, Asia and Latin America.
Mintos has had $ 7 billion in loans since its inception in 2015.
Martins Sulte, co-founder and CEO of Mintos, told Euromoney: âIt is not an exaggeration to talk about averages. A loan to a consumer in Indonesia or Uganda is very different from a loan to a UK litigation financer or SME in Spain or Denmark. And you can have high risk loans in low risk countries. But the average total annual bad debt return for the current offering on Mintos was between 8% and 10%.