Mintos is to introduce a new scoring system so investors can better assess the risk level of originators on its peer-to-peer lending marketplace.
The pan-European firm will give each originator that funds loans through its platform a score from 10 for a low-risk level, ranging to one for high.
Mintos said this will boost the transparency of lenders and loans and will replace its ratings that provided a score based on the financial and operational stability of its originators.
The risk score will be calculated based on an originator’s loanbook quality and performance, how well it recoups bad debts, how it operates buybacks and its co-operation with Mintos.
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The first version of the Mintos risk score will be unveiled later this month on the lending companies’ pages on the marketplace.
An updated version will follow later in November to appear in the filter options when selecting, investing or viewing loans.
“In 2018, we introduced Mintos ratings, the first Mintos-developed risk assessment methodology that we use to portray the financial and operational stability of lending companies on our marketplace,” the platform said in a blog post on its website.
“Since the launch, we gained a lot of practical experience with this methodology and valuable feedback from our investors.
“As a result, this year we worked to enhance the way we evaluate and show the risk-related business aspects of investments on our marketplace.”
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