KEY TAKEAWAYS
- The average recovery rates in Finland, Spain and Slovakia are all higher in 2016 compared to their 2015 figures.
- Slovakia continues its successful recovery with an average 2016 recovery rate of 84% compared to just 36% in 2015. Moreover, this strong trend is holding steady as previous months have shown similar results.
- Estonia continues to experience a slight down trend. The average recovery rate was 74%, 69% and 66% in 2014, 2015 and 2016 respectively.
- Improvements in Finland, Spain and especially Slovakia have all helped raise the total average recoveries among all countries for three consecutive years.
PRINCIPAL RECOVERY RATES ACROSS MARKETS
As the Bondora platform has developed we’ve enacted more stringent collection strategies. For example, we hand over the overdue loan cases to debt collection agents just one week after the borrower misses a payment. Additionally to in-house debt collection, our partnerships with external debt collection agencies and legal entities in Estonia, Finland and Spain have all helped us track down debtors more efficiently. We believe these reinvigorated efforts will yield improving results over time. In fact, we initiated many of these practices in 2016 which may explain the total improved recovery averages jumping from 44% to nearly 60% from 2015 to 2016.
| Quarter | 2014 Q1 | 2014 Q2 | 2014 Q3 | 2014 Q4 | 2015 Q1 | 2015 Q2 | 2015 Q3 | 2015 Q4 | 2016 Q1 | 2016 Q2 | 2016 Q3 | 2016 Q4 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
 Estonia |
53% | 68% | 74% | 76% | 102% | 72% | 47% | 55% | 54% | 70% | 72% | 66% |
 Finland |
41% | 63% | 37% | 55% | 66% | 60% | 15% | 21% | 30% | 56% | 72% | 46% |
 Spain |
N/A | 18% | 18% | 19% | 30% | 26% | 29% | 34% | 28% | 67% | 35% | 16% |
 Slovakia |
N/A | N/A | 4% | 9% | 29% | 13% | 55% | 48% | 80% | 179% | 25% | 51% |
You can find additional related information about the recovery process from these articles:
- How are recovery rates measured?
- Why don’t you calculate the recovery rate on the principal balance?
