It’s seven months and counting of monthly increases to Bondora originations. And in July, a total of €11,818,925 in originations puts Bondora another step closer on the path to 1 billion, while providing the best customer experience for both borrowers and investors.
Country breakdown
In July, originations grew by 7.1% over June, to a total of €11,818,925. And while Estonian originations fell slightly from June’s figures, it was originations out of Finland that showed the most strength. Finnish originations accounted for 35.5% of all Bondora originations in the month, compared to 30.6% last month, totaling €4,192,237. This represents a strong 24.3% month-over-month growth for Finnish originations.
Not only did the interest rate on Estonian AA-rated originations rise—from 11.3% to 11.4%— their share in total loans originated followed suit. AA-rated loans came to €1,105,920 in July, a whopping 105.7% increase. This brought the total share of such originations from 4.9% to 9.4%. Similarly, A-rated Estonian originations were also on the rise, growing by 66.1% on the month.
These increases came at the expense of lower-rated Estonian originations, which decreased across B-, C-, D-, and E-rated loans. On the flip side, F-rated originations were higher by 218.5%, garnering 5.1% of all originations on the month.
Loan amounts
For the third consecutive month, the average loan amount for Estonian originations were lower. This time, originations were down by 1.3% to an average of €2,708. Finnish originations had the opposite trend, rising by 4.5% to €2,547.
Loan duration
Estonian originations averaged 56 months for the second consecutive month in a row. Finnish originations were also consistent with last month, with an average 55-month duration.
As expected from the consistency of average durations, the number of originations by length did not change in any material way. Estonian originations with a 60-month duration fell slightly from 77.0% to 76.3%. In Finland, the opposite trend took place: 60-month originations grew from a 73.9% share to 74.9%. Other changes in originations by duration were all within 1.0% of their proportional rates when compared to June.
Age
The average age of Bondora borrowers remains unchanged across both originating countries. The average Estonian borrowers remains 37-years old, while Finnish borrowers are still an average of 45-years old.
Income
Over the past few months, the average income for Estonian borrowers has swayed greatly. After rising by 55.1% in June, income for Estonian borrowers dropped again in July by 39.9% to €1,362. Alternatively, Finnish borrowers saw an increase in income to €3,261. This is a 7.3% month-over-month growth rate.
Education
The biggest increase in Estonian borrowers’ education came at the vocational school level; 24.1% of Estonian borrowers attained this education level, compared to 23.0% last month. Alternatively, the lowest level of education, junior high school, decreased to 18.6% of Estonian borrowers from 19.4% a month ago.
Finnish borrowers, on the other hand, saw a reversal of that trend, with vocational school education dropping by 4.1% to 48.4% of borrowers. This caused an increase in the proportion of borrowers across all other education levels.
Employment
In July, the average Bondora borrower tended to have a longer employment history. Employment for more than 5 years grew to 33.9% from 33.0% of all borrowers, and those employed up to 5 years were also higher by 0.7% to 32.2%. Retirees still make up the lowest rate of Bondora borrowers, at 6.3%.
Homeownership
Homeowners are still the most prevalent borrowers on Bondora, making up at 42.3% of all borrowers. However, in July, the biggest shift was tenants, who after accounting for 39.7% of borrowers in June totaled only 21.7% of borrowers this month. On the flip side, those with a housing status of “Other” grew to 15.0% from 6.1% of all borrowers last month.
Verification
For the second consecutive month, 100% of borrowers from Finland were verified by Bondora. As for Estonian borrowers, the verification rate came in at 96.7% compared to 95.7% last month.
Nothing is certain, except more Bondora originations
July was another month of growth for loan originations on the Bondora platform. This month’s 7.1% origination growth rate put July’s total at €11,818,925. This was led by AA-rated Estonian originations that jumped by 105.7%, and A-rated originations, which also had a strong growth rate of 66.1%.
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