International award-winning loan originator ID Finance joins Mintos marketplace

29.03.2017

mintosblog

Big news from Mintos – ID Finance has joined the platform and, starting today, will place personal unsecured loans issued in Spain under its MoneyMan brand on the marketplace. ID Finance is a fast-growing data science, credit scoring and digital finance provider that is pioneering fintech innovation in emerging markets.

ID Finance was established in 2012 by Boris Batine and Alexander Dunaev who had background from investment banking and recognized the potential for fintech in emerging markets. The company is now the largest online lender in Russia, also operates in Kazakhstan, Georgia, Poland, Spain and Brazil, and plans to boost its presence in Latin America in near future.The company’s mission is to provide financial services to people without bank access, raising their standard of living. ID Finance currently employs a strong professional team of more than 380 people with significant experience in the financial, risk and IT sectors.

The company has seen rapid growth since being established. ID Finance has over 3 million registered customers and more than 800 000 loans have been issued to date, over 65% of which are to repeat loans. In 2016, ID Finance issued loans worth USD 92 million and generated USD 68 million in revenue, a 222% y-o-y growth. Issuance is planned to increase to USD 240 million in 2017.

The core of ID Finance is its advanced IT and risk management systems, which collect and analyze thousands of data points in real time. This has resulted in top-performing risk management system, letting ID Finance to reach profitability within just a year of launching into a new market. The company has been profitable since 2015.

ID Finance is trusted by both private and institutional investors around the world. In February 2017, the company secured USD 50 million in debt funding to expand fintech to developing countries.

Initially loans issued in Spain will be available to investors on the Mintos marketplace, and more although additional markets will be added in near the future. The average loan that ID Finance will place on the Mintos marketplace will range from EUR 300 to EUR 1 200, with a repayment period of 30 days to 4 months. The loan originator will initially offer investment opportunities in euro (EUR).

It is expected that the average net return to investors will be around 11%. ID Finance will offer a buyback guarantee for loans that are delinquent for more than 60 days. To retain its “skin in the game” ID Finance will keep at least 5% of each loan available on the Mintos marketplace on its balance sheet.

“The interaction between ID Finance and Mintos is a logical step towards the development of a global ecosystem of online lending and сross-border capital flow. We look forward to fruitful and long-term cooperation with Mintos that will include the entire range of consumer credit products provided by ID Finance in all six countries of operation. The joint project meets ID Finance development strategy, which involves diversifying the sources of capital and reducing the cost of raising financing,” says ID Finance co-founder Boris Batine.

“We are truly excited that ID Finance has joined the Mintos marketplace. Thanks to its advanced credit scoring and risk analysis technology, ID Finance gets credit scoring right extremely quickly in markets it operates. Investors who invest in ID Finance loans thus receive an enhanced income-and-risk ratio, as compared to conventional investment instruments. ID Finance is also the first loan originator to offers loans issued in Spain to Mintos investors. This enables investors to diversify their portfolios even better,” says Mintos co-founder and CEO Martins Sulte.

ID Finance has received high praise in the industry, including the awards: Best Alternative Finance Company by European Fintech Public Awards in 2016, Europe Top 100: Winner “Finance” by Red Herring, Best Management Innovation 2016 by Time of Innovations Award, and many others.