Nibble is an exciting new fintech that aims to provide investors with access to a diversified portfolio of consumer loans, with target returns ranging from 9.7 per cent to 19 per cent.
The platform enables customers to invest in loans that are issued by companies under the Joymoney brand, which operates in Russia and Spain.
It only allows Joymoney companies to post loan opportunities on its platform, as it is highly familiar with Joymoney’s credit scoring process and the types of companies issuing loans.
In February 2021, Nibble turned one year old. Despite the fact that Nibble is a young platform, it is a part of the IT Smart Finance holding company that has operated in the fintech market since 2014.
The companies issuing loans that are posted on Nibble’s platform for further investment are also part of the holding company and have been operating since 2014. The fact that all of the operations are carried out within one holding company enables better control of processes, reduced risk and increased profitability for the customers. This means that if one entity faces financial difficulties, the IT Smart Finance holding company can step in.
Joymoney, together with credit scoring service Scorista, has developed unique predictive models that analyse borrowers. Using this double scoring system empowers Nibble to offer investors tailored strategies that avoid high levels of risk.
“Nibble performed well in 2020,” said Maxim Pashchenko, founder of Nibble.
“But frankly speaking, the time of our platform release was not the best. We made a lot of efforts to achieve these performance indicators: more than 1,500 users registered; more than 600 users invested in our platform; more than €50,000 euros (£43,297) in paid interest; and the total investment in the platform was almost €500,000.”
Nibble has developed a new product, called Flexible Investment, to help investors diversify their portfolio. It involves three investment strategies with an annual interest rate ranging from 9.7 per cent to 19 per cent. Nibble makes it as transparent as possible for investors by describing all the risks that an investor may face.
At the end of each month, the risk committee analyses the issued loans, calibrates the scoring model and makes forecasts on interest rates for the next time periods.
“Currently, we are undergoing the process of obtaining an Anti-Money Laundering (AML) License and an Estonian Financial Supervision Authority (FSA) Credit Provider License,” explained Maxim Pashchenko.
“Although they are not required by law, we are obtaining them to make our customers feel as secure as possible when investing with Nibble. We believe that the company’s open attitude towards the risk policy has fortified investors’ confidence in our platform.”
The aim of Nibble is to become one of the top three investment platforms in Europe, with plans to increase its investment volumes and expand its product line in 2021.