When making investment decisions, investors ask the same questions: How much return will I make? How long until my money is fully invested? What losses must I expect?
Therefore, we cover the three main topics on our statistics page: return, volume and risk. But not only that. We have our data verified by LoanClear who recently agreed to acquire BRISMO, the market leader for independent and standardised evaluation of lending performance data. BRISMO already verifies the performance of Lending Platforms like LendingClub, Funding Circle, October and many more.
LEND is the first platform in Switzerland to venture an independent evaluation of performance data. It shows that our mantra "quality before growth" creates sustainable value for investors.
The Net Return Index NRI represents an investment scenario assuming an initial investment of CHF 1’000 and a reinvestment of all returns. For LEND, the curves are based on historical performance data for Personal and SME loans - after defaults and platform fees. The red curve represents an investment in non-government Swiss Bonds SBI. While both LEND indices increase over time showing a steady and solid performance, the SBI closes with a negative value as of 1st July 2020.
By Credit type
A Vintage diagram clusters all loans into different groups based on the year that they were issued. The horizontal axis shows the amount of months since origination. Each curve shows the evolution of the cumulative net loss of a group over time. It accounts for both losses and recoveries.
Why do the 2018 LEND consumer loans have a high net loss?
Some of the loans originating in 2018 were sourced via external loan agents. While this additional sourcing channel grew loan volumes quickly, the quality of this volume was insufficient in our view. We learned quickly, and decided to remain quality focused and quit collaboration with all agents. This has led to more stable risk and the 2019 vintage is already more stable. At LEND, you will find pure, directly sourced credit risk.
Why is the net loss increasing and, in some cases, decreasing again after some months?
The curves show a decreasing net loss in some intervals because we also take into account the recoveries. A good example for this behaviour is the Personal Loans of 2016 where we were able to recoup all the outstanding debt.