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Fine Bank P2P points: experiences, dangers and information
Fine Bank is a Latvian P2P credit platform. With this article we present our experience with Fine Bank. The core task is the mediation of lenders (investors) and borrowers. This credit marketplace offers investor opportunities in many countries. The company was set up in 2009 under the company name Finabay in Latvia with the aim of brokering loans.
Through the ALI (Alternative Credit Index) Fine Bank is always looking for new markets to expand its activities. The ALI was created together with the KPMG auditors and is intended to show inefficient credit markets where the introduction of Fine Bank is worthwhile. In the meantime, more than $ 1 million in loans are granted every day.
So far, loans of $ 500 million have been granted. The young teams, which consist of over 400 employees in 6 locations, are on average only 32 years old. Invest in Fine Bank around the clock, around the clock, around the clock, around the clock, around the clock. The minimum investment amount per loan is 10 E. At the interface of the trading platform, the available credits are clearly structured and may be a bit more spartan than with other providers.
The loans can be broken down by interest rate, country, remaining term and ratings. Investments can be made either automatically or manually. Our Fine Bank experience: was the purchase worth it? We now have 2 years of experience with Fine Bank. In 2016 we transferred funds to our Fine Bank account and invested in P2P credits. We have not only invested in loans with a redemption guarantee but also in loans without a redemption guarantee.
The P2P credits also failed, as you can see in the screenshots, but the profitability is still respectable at just over 10%. Both the down payment and the distribution went smoothly and we had the credit on our in Germany after 2 working days. Therefore, only those funds should be invested whose losses are manageable in case of doubt.
Since a P2P platform is not a banking group, regulations and disclosure requirements would not have to be complied with to the same extent as with financial institutions. In some states, P2P business agents don’t even need a permit. According to their own information, 7% of the loans on the Fine Bank website have been in default in the past. It significantly reduces the risk potential if you invest in as many individual projects as possible.
In general, Fine Bank, like most P2P platforms, started operating after the recent economic crisis in 2008/2009. It is therefore unpredictable how things will go in the event of a crisis and increasing unemployment. In principle, more loan defaults can put the stage in danger in an emergency. In the event that there is a credit default. The question of how to ensure a smooth process in the event of Fine Bank’s insolvency is not discussed on the company’s website.
In principle, the investor owns the claims against the borrower, including the repayment claim. There are currently loans with a buy-back guarantee, but that’s more of a Fine Bank promise. Fine Bank purchases credits that are overdue for more than 30 days. Loans for which there is a repayment guarantee are marked with a corresponding sign.
The guarantee can only be provided as long as Fine Bank has the opportunity to reimburse these amounts. The repayment guarantee leads to a slightly lower interest rate for the corresponding loan. Accordingly, the risk types of the loans are broken down into A, B, C and repurchase. The repurchase is mainly carried out for short-term microcredit and does not apply to all loans.
Auto lenders are available to the lender so that they do not have to select each individual loan for their investment individually. At Auto-Invest, the maximum investment amount is determined first, followed by the investment amount per loan. One of the reasons why Auto-Invest is not investing can be the lack of credit availability.
When more and more people are looking for a worthwhile investment, the available investment opportunities can become rare. In this case, you can continue to invest in selected loans in addition to Auto-Invest. Does a Fine Bank application exist? Fine Bank provides an application for iPhone and cell phone. This informs the user of messages such as incoming payments, investments made and payments made.
It has to be decided by each individual whether this takeover offer brings real additional benefit for the investor or not. Due to the large amount of data that P2P traders are provided with, all of these important insights can be used by API users to optimize their own investment strategy. Although some providers have already started this service, Fine Bank does not yet have such an interface.
No bonuses or promotional codes are currently available for Fine Bank.
This also indicates that there are currently enough investors on the platform. If more investors are found in the future, it is entirely possible to change and initiate measures. Fine Bank is not a secondary market in the strict sense, but loans can be redeemed on the secondary market before the deadline.
The sale of credits is completely free of charge. However, no additions or deductions can be made to the loan amount. Interest earned in the investor’s home country is taxable. Depositing credits on Fine Bank is very easy. The bank details and the purpose to be used can be looked up in your own investor profile under the Deposits tab.
This notice must be given when transferring money and after 1 – 2 days the credit will be credited to the Fine Bank account. You can use the Disbursement pushbutton to pay out an amount of money that can be entered individually if equity is not currently involved in a loan project. If you want to change the bank details for the withdrawal, you must first transfer any amount of money from this account to your own Fine Bank account.