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11/03/2021
Sneakypeer Newsletter Week 10
Welcome back to the Sneakypeer newsletter! Below you will find industry news from last week.
Several lending companies are among the fastest-growing in Europe
On March 2, Financial Times released its fifth annual ranking, displaying the European companies that achieved the highest compound annual growth rate in revenue between 2016 and 2019. According to Financial Times, the pandemic, as well as the complications brought on by Brexit, have severely impacted numerous companies all across the continent. Although half of Europe’s companies have experienced an overall decrease in revenue or profit in the last 12 months, the Financial Times annual list reveals the businesses that exhibited the most promising potential for growth before the coronavirus took over.
SunFinance, a fintech company from Latvia, has been listed as the second fastest-growing company in Europe, marking the first time in history that a company from Latvia has reached a spot among the Top 50 businesses. Other lending companies have also experienced significant growth, with IuteCredit taking 172nd place and Mogo being listed as the 896th.
The Senate of the Republic of Latvia decides that consumer loan portfolio sale will be permitted to licensed buyers only
The legal proceedings regarding the Latvian Loan Originator DelfinGroup have at last come to a close. DelfinGroup decided to oppose the rules demanded by the Latvian Consumer Rights Protection Center in 2016, creating an administrative process that was only resolved recently, on January 28.
The court has concluded that, from now on, an investor should be considered as the consumer lender itself, therefore consumer lending services may be provided only by a licensed capital company. Additionally, Loan Originators will no longer be allowed to sell issued loans to third parties, including peer-to-peer platforms. This verdict could potentially affect the field of finance in Latvia dramatically, however, it must be taken into consideration that new rules for European crowdfunding service providers will apply from 20 October 2021, overshadowing the decisions of the Latvian court.
EstateGuru launches Ambassador Program
EstateGuru, a crowdfunding platform based in Estonia, has recently created its new Ambassador Program, offering its clients to earn commission by referring borrowers to EstateGuru. By successfully referring a borrower, an ambassador will earn 0.5% of the total loan amount.
According to EstateGuru, the program aims to present the platform as an alternative to traditional credit institutions to new potential clients. Although the platform has already made connections with numerous real estate and mortgage brokers, the Ambassador Program will be used as a tool to reach out to a larger number of possible future borrowers and SMEs that may be interested in alternative finance opportunities.
