How would you describe Finbee platform?

We are rapidly growing Lithuanian peer-to-peer and peer-to-business lending platform with excellent track record of choosing solvent borrowers and providing substantial returns for investors. We offer services to Lithuanian and international investors. We are currently working with borrowers from Lithuania, but we have plans to expand to 3 other European countries in next 2 years. Since launching in August 2015 individuals and companies have borrowed more than €6.2M via FinBee.

What are the three main advantages for investors?

There are many advantages for investors, but these are most important ones as selected by our lenders themselves. First, we have the highest interest rate after NPLs (16.3 percent) and lowest default rate (4.7 percent) among Lithuanian p2p platforms. These numbers are also one of the best in Europe. Second, we are the only platform in the Baltic states where lenders can invest in business loans. Third, our portfolio is very diverse – investors can choose loans for individuals or businesses with various interest rates and risk levels.

What ROI can investors expect?

Our historical interest rate after NPLs is 16.3 percent. This is the highest return rate among p2p platforms in Lithuania and one of the best in Europe. We are committed to maintaining interest rate at this level, especially when loan supply will be increased after expansion to other European countries.

Is the technical platform self-developed or using white-label solution?

UK‘s leading p2p software developer Madiston has provided and implemented its highly sophisticated and automated software to Finbee.

How reliable is the credit rating / credit history data available?

We manually check every single application, evaluate all the data, speak to potential borrowers and if all the criteria are met, only then loan application is approved and presented to lenders. Our credit requirements are stricter than that of Bank of Lithuania. For example – we require that potential borrower would be employed for at least four months, whereas Bank of Lithuania requirement is three months. Our own credit rating system is major reason why our default rate of 4,7 percent is lowest among all Lithuanian platforms and one of the lowest in Europe.

Also, we work with leading Lithuanian credit rating agency CreditInfo Lithuania. It is the main provider of data to major banks, consumer loan companies and other financial institutions in the country.

How is the company financed?

The launch of the company in 2015 was financed by founders. In May 2017 we’ve received an investment from Estonia based company Zero Sum Capital which acquired 40 percent of FinBee’s stock. We’ve reached break-even in July 2017, which is a great achievement considering our rapid growth.

Are you open to international investors?

We are open to lenders from abroad. The only requirement is for them to have a EU based bank account.

Is your platform regulated?

It is regulated by Bank of Lithuania. We have peer-to-peer lending, peer-to-business lending licenses and we are an approved legal handler of personal data. We will be receiving e-money license in the next two months.

Where do you see your platform in 5 years?

We see FinBee as a strong peer-to-peer and peer-to-business lending platform that ensures high return rates for investors and continues to attract quality borrowers. Our goal is to expand to additional 3 EU countries in the next 2 years.

What are your thoughts about:

* Provision funds (Mandatory or not; will it be gone in few years?)

* BuyBack guarantees (Mandatory or not; will it be gone in few years?)

Provision funds and BuyBack guarantees might encourage lenders to invest to riskier loans without fear of losing money. In essence, it distorts whole idea of risk and investment. We strongly agree with Uk’s Financial Conduct Authority’s position that p2p market should be as simple as possible, without additional instruments that might confuse investors.

How do you see competition in markets you operate in:

* New competitors or consolidations

* Working locally or internationally
I believe that new competitors will continue to emerge and this is a good thing – this will let market to evolve and provide better quality services to investors and borrowers. However, at certain point consolidation is inevitable as well as expanding business abroad, so I would say that the number of international players will continue to grow.

Trends of features (e.g. secondary market, automated investment, etc.) that should be very significant.

The next big thing and logical step in p2p market should be aggregated investment platforms that also creates an aggregated secondary market where loans from multiple platforms will be presented to investors. I strongly believe that in upcoming years we are going to see such platforms emerging.

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