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Minterest

I have just received an email from Minterest that they have a new product launched on 15th May and it is called Premium Property Investments. Anyone has any feedback on this?
Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Jun)

Level 9. God of Wisdom
Answered on 12 May 2020
Then check very well that You do not pay a 'premium' fee. And that the product is not over-structured with difficult to understand/intransparent pricing. On their website it is difficult to get information on that.
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P2P Lending

Investments

COVID-19

Funding Societies

CoAssets

SeedIn

Minterest

Loans

Personal Loans

How are the P2P companies who disburse loans to small and medium enterprise companies surviving through this COVID period? Are there more defaults for retail investors?
GC
GC
Level 2. Rookie
Answered on 08 May 2020
There are many perspectives to approach the question. One of such is this - 1) The economy was gradually sinking into recession, hasten by the black swan. 2) When times are bad, major and primary lenders tighten credit controls. 3) Companies who used to be credit-worthy during the norm, get downgraded coupled with the adverse impacts on their businesses. 4) This opened up opportunities to the market of secondary lenders such as P2P platforms. 5) Not suggesting that P2P lenders are reckless and slipshod with credit controls, but different financial companies operate differently. As the saying goes, "high risk, high returns". Default rates can definitely be expected to increase in tough financial times and can be attributed to different reasons.
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P2P Lending

Funding Societies

CoAssets

Minterest

What do you think will happen to all the P2P lending companies in Singapore in the event of a recession, will they all start to default? Should I pull out my investments now?
Kenneth Lou
Kenneth Lou, Co-founder at Seedly
Level 9. God of Wisdom
Updated on 13 Mar 2020
I actually just got this email from Funding Societies... Replicated in full~! Dear Kenneth, We have been monitoring the escalation of the COVID-19 virus since January 2020. Upon its emergence in Wuhan, China, the virus has impacted many associated supply chains and has increased business volatility and risk. Our growth strategy is pivoted on SMEs and their linkages - upstream with their suppliers and downstream with their clients. Through this ongoing outbreak of the COVID-19, we have implemented the following measures to monitor and manage risks to our portfolio during this time. Credit Assessment Approach: We expect non-performing loans (NPLs) of SME-focused lenders to come under more pressure, especially due to possible increased defaults by SMEs operating in F&B, travel, cross-border trade, and service industries that are dependent on labour from affected countries in Southeast Asia. As originators, we have taken the following preventive measures: 1. Assess existing borrowers’ degree of dependency of revenue and/or other linkages on affected countries. We are also taking a reduced exposure of credit limit granted to SMEs. This is being viewed on a case by case basis. 2. Forecast of issuer’s revenue/cash flow for assessment of all new loan submissions and renewals are subjected to a haircut due to a weaker economic outlook. 3. Be agile in reacting to changes in the macro economic environment to tighten the ratios and reduce loan limits and tenor, and increase rates to adjust for increase in risk Short Term Loans: We have started further reducing the average loan tenor on a portfolio basis to mitigate mid to long term risks. For example, issuers that were previously eligible for a 12-month tenor would be provided a shorter term loan, while we assess their debt servicing capability. This allows us to rebalance our portfolio at more frequent intervals and be better placed during the indefinite duration of COVID-19 and its impact on global markets. Closely Work with Borrowers who have Large Exposures : We recognise that SMEs who have borrowed larger quantum are especially vulnerable due to their high credit exposure. In order to mitigate and control the concentration risk across your portfolio, we will either reduce limits or restructure facilities on our borrowers’ loans, on a case by case basis. Credit Monitoring and Remedial Management: We continue to monitor the performance of our portfolio and its underlying risks very closely. On top of existing risk management activities, our collections team has: 1. Inherited recovery efforts from relationship managers (who are normally the first point of collections) instead of stepping in only after 1 month. This will help us to determine early on if borrowers require a restructure in their repayment plan in order to fulfill their obligations to the platform investors 2. Been instructed to proactively restructure loans where we see early warning signs. We will continue to carefully manage our key indicators and evolve our risk management capabilities depending on the global economic situation. On top of this, Funding Societies’ employees have been split into 2 teams to work from home and at the office, on a weekly rotational basis. All employees also go through temperature checks before entering the office premises. We are committed to ensuring our employees are healthy so that our business remains of service to you through this period of volatility. If you have any questions, please contact us at [email protected](mailto:[email protected]) to receive updates. Best regards, Team Funding Societies
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Investments

P2P Lending

Capital Match

CoAssets

Funding Societies

Minterest

SeedlyTV S1E07

I foresee that there will be P2P platforms closing down because the pie isn't big enough. What makes you think your platform is going to survive?
JE
Jamie Evans
Level 2. Rookie
Answered on 02 Oct 2019
Margins are compressing due to competition. The platforms need to be innovative in terms of origination of assets (see Capital Match’s merger with procurement platform, Sesami). But ultimately, Singapore will be too small a market and overseas expansion is the only card to then play...or become a digital bank for SMEs
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Investments

P2P Lending

Minterest

CoAssets

Capital Match

Funding Societies

SeedlyTV S1E07

There are so many platforms to choose from. What is the main feature that sets you apart from your competitors?
Alex Chua
Alex Chua, Pcme at Anderson Junior College
Level 6. Master
Updated on 20 Jul 2019
Here are my 2-cents thoughts. As much as p2p is a tech driven fintech, it is still a service industry nevertheless. To me, whatever technology features such as auto-invest will soon be commonly used by the platforms. Without them, they will lose an edge. So you could start by asking yourself what would you like to have as an investor or a borrower. For a borrower, would be probably necessary financial advice so that they will get sufficient funds. Etc. For an investor, you want as lower risk loan as possible. Is there a sufficient supply of loans? Which platform provides a better investing experience? the extensiveness of platform providing the loans. How receptive are the platform to feedback and their responsiveness in changes? Having a good customer base, along with a good support team could improve your rewards and user experience. Furthermore, having 0% default rate is ideal. However, is your funds put into desirable rewards investment? This also questions the response of the platform in a situation of defaults. In choosing the platform, ask yourself what gives you a better piece of mind. Is it within your risk-reward? Which loan product do you prefer? (there is some difference in loans offered among the platform) what is your ability? (your fund size and risk tolerance ). You should also filter the reviews and forums of the platform. Remember this is a service industry. In my opinion, a good service, or user experience should be the main factors in choosing the platform. A good service attracts more borrowers and in turn attracts more investors. A good service is what drives the platform to innovate and constant improve themselves. Do your due diligence. Feel free to Facebook msg me if you have any queries.
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P2P Lending

Funding Societies

CoAssets

MoolahSense

Capital Match

Minterest

SeedIn

Share your P2P Lending Platform (Funding Societies, CoAssets, MoolahSense, Capital Match, Minterest, SeedIN) returns and performance so far?
Cassandra Tho
Cassandra Tho
Level 5. Genius
Updated on 18 Apr 2019
I'm Cassandra, the community specialist from CoAssets. Allow me to give you the objective view of my findings. All calculations except for Capital Match are according to MAS's standards. Rate of returns per annum in 2018, ranked according to weighted average returns) 1. Minterest: 3.5-24% (Weighted ave: 12.95%) 2. CoAssets: 9-10% (Weighted Ave: 9.91%) 3. Moolahsense 5.90%-16.82% (Weighted Ave: 9.9%) 4. Funding Societies: 6.51-17.79% (Weighted Ave: 9.32%) 5. SeedIn: 7-20% (Weighted Ave: 8.33%) 6. Capital Match: 15-20% APR (Weighted Ave: unknown) Default rates (measured as non-performing loan rate beyond 30days) in 2018, ranked in descending order 1. Moolahsense: 14.82% 2. Minterest: 0.59% 3. Funding Societies: 0.47% 4. SeedIn: 0.32% 5. Capital Match: 0.20% 6. CoAssets: 0.00% Note that stats are according to internal standards and not MAS's criteria. Even after 90 days, Capital Match does not classify it as a default, unless the company is in the windup, has undergoing lawsuits, or the director(s) declare bankruptcy. Furthermore, Capital Match does not have an updated statistic based on 2018; thus this internally calculated rate is for 2017. In summary, the services these platforms provide are similar. All these platforms provide opportunities for retail investors to invest in a variety of projects. The difference is that CoAssets is the only listed online funding platform which means that they're obliged to give transparent performance updates twice a year. Their rate of returns, default rates and profits are under the scrutiny of the Australian exchange and the public, bare for all to see. As for the rest, the data provided above was based on the information provided on their website. Another factor to consider is hidden costs like service fees or surcharges within the rate of returns. For CoAssets specifically, the investors get the full interest back. For others, for example, the interest rate may be 20% but they may charge a 1% service fee resulting in an actual return of 19% only. I'm open to discussing any of the mentioned points should someone else's findings be different. I hope this helps. References: MAS guidelines: http://www.mas.gov.sg//media/MAS/Regulations%20and%20Financial%20Stability/Regulations%20Guidance%20and%20Licensing/Securities%20Futures%20and%20Fund%20Management/Regulations%20Guidance%20and%20Licensing/Circulars/CMI%2027%202018%20Controls%20and%20Disclosures%20to%20be%20Implemented%20by%20Licensed%20Securities%20Based%20Crowdfunding%20Operators.pdf Moolahsense: https://www.moolahsense.com/statistics/ Minterest: https://www.minterest.sg/statistics Funding Societies:https://fundingsocieties.com/ SeedIn: https://sg.seedin.tech/statistics CoAssets: https://coassets.com/asx/about/ Capital Match: https://lending.capital-match.com/statistics.html
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