Mintos has downgraded the risk scores for eight loan originators on its marketplace and added scores for recently-added firms following a second-quarter review.
The European lending marketplace rates its lending companies on their loan portfolio performance, loan servicer efficiency, buyback strength and the cooperation structure between Mintos and the business, giving sub scores for each category and an overall Mintos risk score.
The Mintos risk score ranges between one and 10, with 10 representing a low risk and one indicating the highest risk, and updates these ratings every quarter.
After a second-quarter review, the Mintos risk score was withdrawn for eight lending companies.
This included companies that have an inactive status on the platform, such as Latvian lenders AgroCredit and Creamfinance, Indonesian lenders Kredit Pintar and Pinjam Yuk, Mikro Kredit, which is in Belarus and Denmark-based Sun Finance.
Mintos said the scores for loans from Dozarplati Russia and Eleving Albania have been withdrawn and will not be evaluated again because these loans have been bought back from Mintos investors due to changes in the lending companies’ business directions.
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Mintos has evaluated 10 new lending companies it has recently added onto the platform.
These were made up of Mexican lenders Alivio Capital (score withdrawn), Capem (rated as an eight) Conmigo Vales (six) and GoCredit (six) and the Mexican entity of ID Finance (six) which has recently relaunched activity on Mintos.
Two new companies on Mintos, Jet Finance and LF TECH, offering investment opportunities from Kazakhstan, were rated as seven and six respectively.
Other ratings for new lending businesses on the platform included: UK litigation finance funder Fenchurch Legal, which was rated as six, Watu Credit, which offers motorbike loans from Uganda and was rated as seven, and Russian lender Zaim Online, which was given a Mintos risk score of seven.
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“Due to the high number of new lending companies we onboarded this summer, in this update, most changes come from these companies finding their place in the Mintos risk score tracking list,” Mintos said in a blog on its website.
“In addition, for a number of companies, the Mintos risk score for loans has been withdrawn.
“In general, we didn’t notice any major patterns behind the most recent changes in the Mintos risk score and sub scores. Some changes are driven by marginal changes in the financial standing of the company in the second quarter of 2021, and others are driven by country-specific factors, e.g. FX volatility.
“Consequently, most changes are seen across the buyback strength sub score and the loan portfolio performance sub score. The loan servicer efficiency has changed in three cases, and the cooperation structure sub score remained unchanged for all evaluated loans.”