Mintos plans to finalise its transition to the financial instruments Notes after ending 2021 on a high with 746,429 loans worth €158.7m (£132.6m) funded in December.
Last month, the European alternative lending marketplace said its loan supply and forward flow – which is a commitment to invest in a set of pre-agreed underlying loans at a predetermined rate for a set period of time – both increased from November.
In December, Mintos investors earned over €3.6m in interest at an average rate of 9.49 per cent. The Russian Federation, Spain, and Kazakhstan were the three largest markets for investments in loans.
“A main reason for this is the holiday season when lending companies issue more loans due to increased borrower demand,” Peteris Mikelsons, account management team lead at Mintos, said in a blog on the platform’s website.
“This, in turn, leads to a more significant need for funding. During this period, average interest rates rose, and loans available for investment grew to €50m, most of which were in the Euro currency.
“In addition, we’re seeing more interest from both investors and lending companies in forward flow on the Mintos platform.
“Forward flow means lending companies get pre-commitment from investors to fund loans for a certain period. In return, they offer investors higher interest rates compared to re-investing via Mintos strategies. Forward flow can be an excellent way for investors to earn enhanced returns.”
As well as transitioning into Notes, this year Mintos plans to expand into a new product offering, investing in exchange traded funds (EFTs).
“Once launched, Notes will bring loans in line with mainstream retail investing – something that’s revolutionary within the loans asset class,” Martins Sulte, co-founder and chief executive of Mintos, said in the blog.
“We’re looking forward to seeing how loan-based investments perform this year as they continue to be an excellent addition to any investment portfolio.
“In parallel, we’re working on a project that will give investors an option to diversify their portfolios across different asset classes within the unique Mintos environment.
“We’ve validated the concept with many investors, including feedback from a beta test group that actively participated in surveys and prototype usability tests.
“During this exercise, we identified a lot of valuable insights on how to make investing in ETFs more user-friendly so we’re excited to bring this offering to our investors.”