Mintos review – Results after 18 months
This Mintos review is 100% unbiased and based on my own experiences after one year of investing.
What is Mintos?
Firstly, as Mintos has a unique business model, and they are not a P2P lending company but a marketplace for loans, they often find there can be some confusion. Mintos affiliates find it very beneficial to give their audience an overview of what Mintos is and how they are different from the rest of the competition.
Mintos is the leading peer-to-peer lending marketplace in continental Europe that connects investors with borrowers of various loan originators from around the world. It is an easy and transparent alternative to the traditional banking system.
The platform launched in January 2015. It currently serves 63 loan originators and more than 146 965 investors from 70 countries. Mintos has funded close to 2.5 billion euros since it started.
NEW PRODUCT – Mintos Invest&Access
On 10th of June 2019, Mintos came out with a new product called Mintos Invest&Acccess.
Mintos Invest&Access is a similar product to Bondora’s Go & Grow, except Mintos Invest and Access offers returns up to 12% instead of Bondora’s 6,75%.
Read more about Mintos Invest and Access here – https://financefreedom.eu/mintos-invest-and-access/
Mintos won the People’s Choice in the 2017 AltFi Awards
“The highly-anticipated results for the 2017 AltFi Awards are in and we have fantastic news! Thanks to the support of our investors, Mintos has been voted as the People’s Choice for 2017. We sincerely thank everyone who voted and encouraged others to vote for the Mintos marketplace.”
This confirms that Mintos is truly the leading peer-to-peer lending marketplace in continental Europe.
How do I create an account?
It is very easy. All you need to do is fill out our registration form here.
How to transfer money to your Mintos account?
You can transfer money to your Mintos account from your bank or e-money account. Transfers in EUR can be done easily and at low cost using SEPA (Single Euro Payments Area) transfers. If you have money in currency other than EUR, you can transfer it using money transfer service.
Can companies invest?
Yes, companies can invest through Mintos. To comply with AML requirements, we request additional information from companies, such as registration documents, information about ultimate beneficial owners, identification of a company representative, as well as any other documentation deemed necessary in each case.
What and how to use Mintos auto invest?
Above all, Auto Invest automatically implements your chosen investment strategy. After you have entered your investment criteria, Auto Invest will automatically invest in suitable loans. You can access Auto Invest at any time and follow your portfolio activity in real time to make sure it is working according to your investment goals. Auto Invest is a very efficient tool for saving time spent on investment activities. It also allows you to access newly placed loans in the system before manually-made investments.
You can pause or cancel Auto Invest at any time.
However, once you have confirmed your investment criteria, Auto Invest will review loan listings and invest funds in loans that meet them. Therefore, Auto Invest will then continue to automatically analyze and invest in suitable new loans as soon as they are listed. If you change any Auto Invest setting, all available loan listings will be rechecked to make sure they meet your investment criteria.
What is Mintos secondary market?
The secondary market is a place where investors can place their investments for sale to other registered Mintos investors.
Benefits to investors selling loans on the secondary market include:
– more liquidity for their investments, whichever allows access to funds when necessary;
– opportunities to profit by selling investments at a premium.
Benefits to investors buying loans on the secondary market:
– opportunities to make investments in loans not available on the primary market;
– opportunities to profit by buying loans at a discount.
Mintos Invest&Access vs Auto Invest vs Manual Investing
(click on the picture to magnify)
How is interest calculated?
Interest is calculated on a daily basis and it is measured against the amount you have invested in loans on the respective day.
In contrast, the formula for calculating interest is as follows: Invested amount * Amount of days * Interest rate/360.
How does Mintos mitigate risks?
As with any investment, there are some degrees of risk. On Mintos website, they clearly outline these risks and urge investors to evaluate them before making an investment. On Mintos, they have several layers of risk mitigation to make investments on our marketplace as secure as possible. This includes buyback guarantee. If a loan comes with buyback guarantee, the loan originator guarantees to buy back loans that are 60 or more days late. This reduces the risk of an investor losing money if the borrower does not repay their loan.
In addition, each loan originator is required to keep a certain percentage of each loan they place on Mintos on their balance sheets. This is called skin in the game. This ensures that the interests of the investors are closely aligned with the interests of the loan originators.
Before a loan originator joins Mintos, they perform a thorough due diligence before connecting them. This is done in order for Mintos to be confident in their ability to originate quality loans and service them thereafter. Once a loan originator has connected to Mintos platform they continue monitoring their financial performance and the quality of the loans they place on Mintos.
What does the Mintos Rating measure?
Mintos introduced risk ratings for loan originators offering their loans on the Mintos marketplace. The Mintos Ratings are on a scale from “A+” to “D”, representing the lowest and the highest counterparty risk respectively. Keep reading for more details.
The Mintos Rating is meant to be a gauge for each loan originator’s financial and operational stability. At Mintos, they emphasise the loan originator’s ability to service and originate loans as being the most important when assessing loan originators. In addition, the financial standing of the loan originator is a material factor when the buyback guarantee is provided to investors. You can read more on whether the loan performance or loan originator is the most important factor when investing in loans on the marketplace in their recent blog post here.
A financially strong company, having a stable and leading market position, solid asset quality, robust debt collection procedures lead by a management team with a good track record and operating in stable and established regulatory environment.
A company with stable but somewhat weaker financials and/or an average market position, and/or adequate debt collection procedures, and/or shorter asset quality track record lead by a management team with relevant experience and/or operating in a less regulated and/or uncertain environment.
A company with considerable weakness in financial performance and standing, with limited competitive position and/or asset quality below the average and/or a limited track record, management lacking experience, and/or operating under substantial regulatory risk due to uncertainty.
A company in financial distress, having problems to fulfill financial obligations and/or has defaulted.
Mintos assessment methodology is based of 5 different business factors with an individual weight:
- Operating environment (10%)
- Company profile (15%)
- Management and Strategy (15%)
- Risk appetite (20%)
- Financial profile (40%)
These 5 factors illustrates how Mintos operate with their loan originators. It is very clear that Mintos is focusing heavy on making money. They have 40% of their emphasize on the loan originators financial profile, followed by the loan originators risk appetite. 2 factors that can impact the economics of the investors easily.
Ultimately, the Mintos Rating measures the counterparty risk or risk of loss resulting from a loan’s originators’ failure to service and/or transfer the received payments from borrowers to investors or meet other contractual obligations (including but not limited to the buyback obligation). Counterparty risk is capturing operational and default risk of the company acting as a loan originator, servicer of loans and obligor of the buyback guarantee to investors. The materialisation of those risks would cause a disruption in loan servicing and the buyback fulfilment which are the core risks related to loan originators on Mintos.
Mintos buyback guarantee
At the time of writing a massive 125 020 loans are available on the primary market. Only 199 of these have no buyback guarantee.
But what is the definition of a buyback guarantee on Mintos?
A buyback guarantee is a guarantee issued by the loan originator to the investor for a particular loan, that confirms the loan originator will repurchase the loan from the investor if that particular loan is delayed by more than 60 days. If a loan with a buyback guarantee is delayed by more than 60 days, the loan is automatically bought back by the loan originator from the investor at the nominal value of outstanding principal, plus accrued interest income.
Personally I think the buyback guarantee makes P2P lending much more appealing to the average investor!
What if a loan originator goes bankrupt?
It’s unlikely that all loan originators will perform flawlessly for all eternity. P2P lending is a booming industry and “survival of the fittest” also applies here. After nearly 3,5 years of service Mintos has experienced problems with 1 loan originator: EUROCENT.
Since June 8, 2017, more than half of the invested principal has been recovered. I will not go too much into detail in this post, just be aware that default of a loan originator is likely to happen.
You can read more about the EUROCENT default in the Mintos Blog.
Key facts about Mintos financial report 2018
2018 was a great year for Mintos, as they continued to strongly grow their business and community. Mintos became the leader in the European market for investments in loans: as reported by independent fintech website p2p-banking.com, Mintos had the largest volume of new investments among similar companies over the second half of 2018;
- In 2018 over 55 000 new investors joined the platform, which is more than twice as much as in the year 2017;
- Loans funded on Mintos: 1.044 billion euros invested into 4.8 million new loans (only 2018 included);
- Number of employees raised from 36 to 59;
- At the end of 2018, there were total of 58 different loan originators on Mintos;
Mintos 2019 outlook. In 2019, we will continue growing both our investor demand and the loan supply, with a focus on diversification across geographies, currencies and the safety of the Mintos marketplace. Mintos Group plans to launch a Mintos banking account and debit card, which will further increase the value added to Mintos customers. The European e-money license application has been submitted and the license is expected to be obtained by the end of Q3 2019. To support further development, Mintos Group raised EUR 5 million in Series A funding in November 2018.
Read more about Mintos Financial Report 2018 – https://financefreedom.eu/mintos-financial-report-2018/
Setting up Auto-Invest
Like most platforms, Mintos has an “Mintos Auto Invest” feature and it is a single most popular feature of the Mintos marketplace – more than 75% of investors actively use it. So you don’t have to select loans manually every time your account has cash available. Auto Invest automatically implements your chosen investment strategy. After you have entered your investment criteria, Mintos Auto Invest will automatically invest in suitable loans.
My Mintos portfolio is not diversified much. I’d rather maximize the potential on each platform and spread the risk between different platforms instead, but that’s just a personal preference. I cannot give you any specific advise on who and what to invest in, but I can show you how I have set up my auto-invest.
My Mintos Auto Invest settings
Below you can see my current Auto Invest settings.
Mintos review: Conclusion
The biggest plus about Mintos is probably all the options you have for diversifying your investments.
If you’re looking for a trusted P2P platform with a long working history and prime diversification options there’s no way around Mintos. They have a really well working platform and good support as well. Combined with the generous buyback campaigns, Mintos is a must have platform in your P2P portfolio.
Join Mintos today and get 1% cashback bonus
Register here – https://financefreedom.eu/mintos/
Mintos has arranged a deal with me, which gives you an exclusive 1% bonus on all investments you make within the first 90 days from your registration if you sign up through one of my links. You will not get this bonus if you sign up directly on Mintos.com
You can see my portfolio here – https://financefreedom.eu/mintos-portfolio/
Please share your opinion
Are you already an investor at Mintos? Please share your thoughts on the platform in the comments section below. Does it meet you expectations? Do you try to diversify as much as possible, or do you prefer to invest in a few quality partners? How much of your portfolio would you be willing to invest into a P2P platform like this?