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20/01/2021
Sneakypeer Newsletter Week 3
Welcome back to the Sneakypeer newsletter! Below you will find industry highlights from last week.
Mintos adds new features to custom automated strategies
Default diversification is one of the three ways an investor may choose to manage the diversification of their custom automated strategies on Mintos. The platform has recently announced the development of its new default diversification algorithm, bringing about multiple changes that will improve the overall experience of investing in Mintos.
The improved algorithm will diversify investments across selected lending companies, that way decreasing concentration risk for investors. Additionally, investors will be able to manually assign different maximum allocations for separate lending companies, which will be diversified further within the distinct entities of the same lending company. The new default diversification algorithm will be in place on January 18.
LendInvest is confident of its ability to deal with the recent lockdown measures
LendInvest, a property lending and investing platform based in the UK, has recently affirmed to its investors that the platform is well-prepared to face the third period of national lockdown restrictions implemented by the UK government, as Covid cases continue to increase at a rapid pace within the country.
LendInvest has revealed that the platform has learned to gradually adapt to the challenges that have arisen since the beginning of the pandemic. During the first lockdown, construction and property viewing was halted, but throughout the span of the current lockdown period, the platform anticipates to see no discontinuation of property viewings and home moves. As construction sites are open again and visits are held while socially distancing, LendInvest is entering the upcoming lockdown with a full set of valued loans and a handful of optimism.
Twino launches secondary market
Twino, a Latvian peer-to-peer platform, has entered the new year with a new secondary market. The secondary market will allow for selling loans at a Premium or a Discount, meaning investors can now set the price of the loans when selling investments, as well as have the possibility of investing in loans sold by other investors.
FCA has yet again added P2P into the high-risk lending sector
The Financial Conduct Authority (FCA), a regulatory body that regulates the financial services industry in the UK, has listed peer-to-peer lending among high-risk investments, placing it in the same risk category as cryptocurrencies and mini-bonds.
The regulatory body received 131,458 complaints about investment products during the first half of 2020, of which only 5,511 were about peer-to-peer lending. Nevertheless, peer-to-peer lending does rank considerably higher among complaints on a per 1,000 products basis. FCA has announced that it will actively seek out incorrect or out-of-date permissions within peer-to-peer firms, as a way of protecting customers from any misunderstanding barriers between the investor and the platform.
The recent FCA findings are currently resulting in a higher level of constant checks and controls among peer-to-peer firms, which could potentially mark a beginning of better service, due to the number of platforms decreasing. This situation, however, could simultaneously concentrate market share among fewer platforms, giving them an advantage and less competition.
