Neo Finance review shows that NEO Finance is Lithuanian based P2P lending platform that focuses on personal loans and works directly with borrowers (not via loan originators). NEO Finance has been launched in 2015, and they became the leading P2P lending platform in Lithuania within the first year in terms of issued loans. Since the start, NEO Finance has already granted loans for almost 33 million euro. Already almost 7000 investors trust this platform and get very high ROI, which is in average 12%.

2018 in the Lithuanian P2P lending market was the year of ‘stabilisation’ and ‘settling down’. The Lithuanian P2P market grew: Although it was not a two-fold growth like in 2017, a growth of more than 50% was nonetheless impressive. In 2018, the Lithuanian P2P platforms issued consumer loans in the amount of EUR 26,748,691 (EUR 17,723,952 in 2017). In 2018, NEO Finance issued consumer loans in the amount of EUR 14,274,422 (53.4% market share), in 2017 – EUR 8,942,047 (50.5% market share).

IPO is a natural step for any kind of growing company. NEO started IPO preparations in 2018. Their goal with it is to show the commitment of staying a responsible and accountable organisation.

NEO Finance holds an Electronic money institution (EMI) licence which allows operations in entire European Union. The licence has been issued by the Financial regulation authority (FRA) of Lithuania, i.e. the Bank of Lithuania, and allows operations in P2P and consumer credit markets. NEO Finance is under the supervision of the Bank of Lithuania, which means that the company is obliged to perform external audit at least once a year, and constantly present the Bank of Lithuania with certain reports.

Historically, Lithuanian consumer loans had high interest rates, as the market was not regulated until 2016. However, even after the regulation was implemented, the interest rates remained high (16.8% for banking consumer loans, and 78.9% for other financial institutions’ loans in 2016). Therefore, risk / reward ratio is one of the highest in Europe.

Every user account is linked to a personal IBAN account, which is free of charge. Payments sent to other financial institutions are also free of charge for VIP investors. In addition, one can have multiple IBAN accounts under their name at NEO Finance, which enables them to test and employ different investment strategies.

NEO Finance offers 25 EUR Bonus for the first investment here

NEO Finance key numbers

Estimated annual returns: 17,47%
Launched: 2015
Autoinvest: Yes
Loan security: Yes
Provision fund: Yes
Buyback guarantees: No
Registered investors: 7250 in June 2019
Minimal investment: € 5
Time to become invested: not specified
Time needed managing: Low
Regulation: Regulated by the Lithuanian central bank
Country of operation: Lithuania
Defaulted loans: NA
Borrowers verification: By the platform
Accepted currencies: Euro
Accepts investors from: Europe

Neo Finance Review: Pros and Cons


– User-friendly and intuitive dashboard for investors
– Investment policy can be tailored to purchase whole loans based on pre-defined criteria or invest into fractional loans across the market
– International business architecture
– Regulated by the central bank of Lithuania
– Fast ID verification and time to become money invested (in my example one day)
– First P2P lending platform that had an IPO in Baltic states

– Do not see any cons at the moment


Mintos, Twino, Savy, RoboCash, Viainvest

NEO Finane review: What I have experienced so far

Neo Finance is a leading platform in Baltics states. It is very important to emphasize that NEO Finance is the first and, so far, the only Lithuanian P2P platform operator to hold the unlimited EMI licence which allows operations in entire European Union. This ensures safety of clients’ money, as it is kept in an account separate from that of the company. In addition, the company is constantly supervised by the Bank of Lithuania. NEO Finance also has Buyback and Provision fund services. When agreements with borrowers are terminated, investors can sell their investments for 50-80% of their face value to NEO Finance. Also, a unique service of Provision Fund allows investors to reduce their investment risk: if a loan defaults, NEO Finance guarantees to repay investors with all the company assets as collateral. AB NEO Finance, a Lithuanian fintech startup which administers the largest Lithuanian P2P lending platform Paskolu klubas, in addition to providing the Neopay payment initiation service (PIS), has successfully carried out its IPO. In total, the company has sold 192 907 shares for the amount of EUR 605 728. And it is the first Lithuanian P2P platform that has successfully done an IPO.

Add funds to NEO FInance account also is enough easy and platform has a wide selection of alternatives to do that: you can choose to deposit funds through a bank. In EU it takes up to 1 working day to see money in your bank account. I am investor at NEO finance since 2017. My XIRR is 14,57%. Even if the loans have way higher interest rates the actual returns are lower due to late payments and defaults.

All in all,NEO FInance has a lot experience in p2p lending industry. They issued more than €34 million in loans, has a big amount of investors and offers to them attracting returns. Moreover, the platform has user-friendly and intuitive dashboard and auto invest tool. You can expect to earn up to 20% annual returns. NEO Finance is takes all the neccessary steps to become a leading P2P lending platform in Europe. They are regulated by the Lithuanian central bank, they have EMI licence and recently successfully managed an IPO.

NEO FInance review is written by Tomas Medeckis