Post by geldregiertdiewelt on Oct 24, 2019 4:18:11 GMT
Mintos just lowered the criteria for allowing loan originators to I&A a few days ago, clearly a wrong move in times where Europe is going into an economic downturn. Let's carefully watch if Mintos is sacrificing investor protection for the good of growth.
In any case, we should not just hope that Mintos gets it right, rather use our brains and be aware that in the world we're living in, EUR investments that are considered low risk currently carry an interest of max. 1 % p.a.! Keep this in mind every time you log into Mintos!!
In my basic due diligence I had put for Rapido Finance: "30% Loans late >30days, negative equity and losses: AVOID" and this did not start recently, they have a track record . How could they get a B- rating, Mintos ratings are probably not updated until something goes seriously wrong.
However how can some people loan money to these almost bankrupt originators (Rapido is not the only one in Mintos). In other forums (German, Spanish, Italian, ...) I can see a lot of financially ignorant people (who in their ignorance really believe they are smart) just looking at the interest rates offered (they love their 15-16% rates ) and no notion of the risk of default of the originators. The really difficult thing in P2P lending is estimating the probability of default of the originator given the (lack of) data. However basic due diligence like the one above is really easy to perform, I believe a lot of investors in P2P are either financially ignorant or lazy. Mintos I&A is a big lazy/ignorant investor trap.
Another joke in Mintos is the Autoinvest, if the granularity of the set of loans allowed by the autoinvest rules is fine, the autoinvest will never trigger. They (maybe) will run it once a day on whatever has been left: absolute rubbish. At night they have some good loans out and most of the time even manual investing gets locked out from these loans: there are a lot of black box rules in Mintos and it definitely is not a proper exchange where transparency on auction priority rules are strictly enforced and audited.