POSTS FROM PAST WEEK
Get the complete picture of your portfolio with the Monthly Overview Report
We explored another report available in the “Reports” page of your Bondora account. The information is organized into the three reports common in accounting: a cash flow statement, an income statement and a balance sheet. Use the information to analyse fees, repaid principal, repaid interest and more.
Weekly industry news roundup – January 23, 2017
Finance Magnates published an article forecasting that marketplace lending will drive business growth in 2017.
Reuters explained new moves by traditional banks aiming to evolve into the P2P marketplace.
Equities.com had an optomistic outlook for marketplace lending citing that, “Even taking the very conservative approach of investing in the highest-quality loans, you can still earn almost five times the 1.16% rate now available with the average one-year bank CD.”
ValueWalk provided a brief overview of how investors can manage marketplace lending. Bloomberg explained the emerging field of RedTech which is any technology designed to simplify the process of compliance among financial firms.
Bondora got a mention from a German Aktien-Blog article illustrating the widespread movement to P2P lending.
Loan funding per channel for December 2016
In our monthly loan funding post we reported that the Portfolio Manager represented 94.36% of funding while the API channel represented just 5.64%. This data illustrates the popularity of automated investing. In contrast, the API channel is more appropriate for investors interested in funding loans through a more analytic and customized approach.
How compound interest returns can be magnified by peer to peer lending
In this post we reviewed the concept of compound returns and how they accelerate profits with each passing year. Using a realistic expected annual return of 10% an investor could see their initial deposit double every 7.2 years. In our included example a €10,000 deposit grows to more than €120,000 in 25 years. Marketplace lending drives these returns through lower costs.
