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Post by Deleted on Feb 19, 2016 14:09:54 GMT
Just got the following email and am truly very disappointed at Twino and don't think want to add any more funds or reinvest them after today! -—---------------------- Over the last six months, TWINO went through an unprecedented growth path. The monthly investment volume grew from less than EUR 500,000 in September, 2015 to EUR 2,500,000 in January, 2016, and thanks to the support of TWINO investors, we expect to become one of the top 5 consumer marketplace lenders in Europe already this spring.
Monthly origination volume of our group lenders still considerably surpasses current TWINO volumes, and we will be able to provide enough investment opportunities for the months to come. However, we have to think proactively to ensure that our origination volumes can accommodate the increasing investor demand over the coming years.
Therefore, in the beginning of the year, we started working on the new loan products in our key markets, Poland, Russia and Georgia. An example of such products are unsecured consumer loans targeted at the prime borrower segment in Poland that we plan to launch this spring. Polish banks have over EUR 32 billion in unsecured personal and credit card debt on their books, and they charge 15-25% p.a. in the interest, origination and servicing fees.
We see a great potential in the prime segment, and we have the experience (we’ve operated in Poland since early 2011) and the team (the group employs over 300 people) to successfully launch and scale this product. For the investors, the prime product means availability of longer duration loans that have a considerably lower risk profile.
However, in order to successfully compete in the prime borrower segment, we need to reduce the rates offered to investors on TWINO. Therefore, starting from February 19, 2016, all new loans on TWINO will be offered with a flat rate of 10.0% p.a. irrespectively of the country of origination or loan duration. The change is applicable only to the newly listed loans and will not affect the loans listed or sold on TWINO prior to February 19, 2016.
The new interest rates on TWINO will remain to be some of the most competitive in Europe, and, in combination with the BuyBack Guarantee and currency risk coverage, will provide premium returns to investors at even lower risk.
We sincerely appreciate your contribution to TWINO development to date, and hope to see you among our investors in our future journey.
Sincerely, Jevgenijs Kazanins CEO
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jack
New Member
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Post by jack on Feb 19, 2016 14:15:30 GMT
VERY disappointing. At the very least they could've given a notice a few weeks in advance. To change things this dramatically effective immediately is not very customer friendly.
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Post by kissmyjazz on Feb 19, 2016 14:46:56 GMT
He did use the wording nearest future, damn those marketing guys and their weasel phrasing.
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ivom
Posts: 13
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Post by ivom on Feb 19, 2016 14:47:28 GMT
VERY disappointing. At the very least they could've given a notice a few weeks in advance. To change things this dramatically effective immediately is not very customer friendly. I'm not an expert or an experienced investor, but totally agree with you. Guess I'll give a try to other platform instead of commiting more in Twino. What do you think about other Baltic platforms, such as Bondora, EstateGuru, Viventor? As I noticed, Viventor now also have high interest loans, 12% and 15% with guarantee.
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p2pmaster
investment is life.
Posts: 128
Likes: 54
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Post by p2pmaster on Feb 19, 2016 14:49:20 GMT
Very strange line of arguments, expected disappointment of investors and strategic move to lower cost of capital. Well, 10 percent interest rate is still a decent return given the buyback guarantee.
ivon, you should try mintos, they are growing rapidly and currrently the largest Baltic platform. They have short-term personal loans with buyback at 11-13%.
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ivom
Posts: 13
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Post by ivom on Feb 19, 2016 14:54:01 GMT
p2pmaster thanks, already have invested some money with them. Now looking for diversification amongst platforms, as well as different countries. Have you tried any of the mentioned platforms? How do those compare to Twino/Mintos?
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Post by redbull666 on Feb 19, 2016 14:56:57 GMT
I don't understand this reasoning at all. Because they have lower-risk loans coming to the platform in the future, their higher risk loands need to bow down to the same lower interest as these new loan types? What is this, socialism for crowdfunding?
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Post by wiseclerk on Feb 19, 2016 15:00:56 GMT
It is quite normal for interest levels to fluctuate on marketplaces. Some even daily.
While I agree that with the new interest rate alternatives to Twino look more attractive to me for new investments, the majority of money I invested on Twino is on the longer term loans, therefore I'll continue to benefit from the 14.x% interest for about a year ot two.
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
Likes: 893
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Post by JamesFrance on Feb 19, 2016 15:51:24 GMT
I have preferred the longer loans too, but with the large number of buybacks and early repayments I will have lots of money coming back so will not be so keen to reinvest as I was before.
It will be interesting to see if the volume growth continues as there is to be a large drop in return with much lower rates and the recent changes to interest payments combining.
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Maestro
Member of DD Central
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Post by Maestro on Feb 19, 2016 16:21:56 GMT
Just got the following email and am truly very disappointed at Twino and don't think want to add any more funds or reinvest them after today! -—---------------------- Over the last six months, TWINO went through an unprecedented growth path. The monthly investment volume grew from less than EUR 500,000 in September, 2015 to EUR 2,500,000 in January, 2016, and thanks to the support of TWINO investors, we expect to become one of the top 5 consumer marketplace lenders in Europe already this spring. Monthly origination volume of our group lenders still considerably surpasses current TWINO volumes, and we will be able to provide enough investment opportunities for the months to come. However, we have to think proactively to ensure that our origination volumes can accommodate the increasing investor demand over the coming years. Therefore, in the beginning of the year, we started working on the new loan products in our key markets, Poland, Russia and Georgia. An example of such products are unsecured consumer loans targeted at the prime borrower segment in Poland that we plan to launch this spring. Polish banks have over EUR 32 billion in unsecured personal and credit card debt on their books, and they charge 15-25% p.a. in the interest, origination and servicing fees. We see a great potential in the prime segment, and we have the experience (we’ve operated in Poland since early 2011) and the team (the group employs over 300 people) to successfully launch and scale this product. For the investors, the prime product means availability of longer duration loans that have a considerably lower risk profile. However, in order to successfully compete in the prime borrower segment, we need to reduce the rates offered to investors on TWINO. Therefore, starting from February 19, 2016, all new loans on TWINO will be offered with a flat rate of 10.0% p.a. irrespectively of the country of origination or loan duration. The change is applicable only to the newly listed loans and will not affect the loans listed or sold on TWINO prior to February 19, 2016. The new interest rates on TWINO will remain to be some of the most competitive in Europe, and, in combination with the BuyBack Guarantee and currency risk coverage, will provide premium returns to investors at even lower risk. We sincerely appreciate your contribution to TWINO development to date, and hope to see you among our investors in our future journey. Sincerely, Jevgenijs Kazanins CEO With CCC US bonds yielding at 20%+: research.stlouisfed.org/fred2/series/BAMLH0A3HYCFinabay own bonds yield at 15%: cbonds.com/emissions/issue/184811We are being asked to essentially provide an unsecured line of credit to Twino/Finabay at 10%. No Thanks. I have a small exposure to Twino, which I might start to divest as my existing loans mature. As I dont believe my risk is coming down with their expansion to prime market.
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Post by gusgorilla on Feb 19, 2016 17:10:59 GMT
I've only been invested for six weeks and doing 1 month payday loans only until I learnt the platform. I'm not going to do much more than cover my Transferwise fees. Still, the Euro has been getting quite a lot stronger against the pound since then so if that carries on I might get a few quid from that when I take it all out again. "How rude!" as my daughter likes to say.
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Post by gmaxkenny on Feb 19, 2016 18:23:10 GMT
Was soon going to withdraw €4k from Bondora and transfer to my Twino account. Look like I will have 2 accounts to wind down now. Strange logic they are using.
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Post by derwasser on Feb 19, 2016 19:20:38 GMT
I'll also start wind down my account after this sudden news.
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Post by jabardolas on Feb 20, 2016 11:36:40 GMT
They dropped the interest rate because they want to continue to grow, though it won't be with my money. I can get more than 10% elsewhere and with safer loans. Besides the company issues bonds with a coupon of 15%. And who do you think they will stop paying first, the platform investors by removing the buyback or the institutional investor by defaulting? I don't feel I'm getting a good deal with them anymore. Farewell Twino
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Post by blahetal on Feb 21, 2016 9:36:24 GMT
They dropped the interest rate because they want to continue to grow, though it won't be with my money. I can get more than 10% elsewhere and with safer loans. Besides the company issues bonds with a coupon of 15%. And who do you think they will stop paying first, the platform investors by removing the buyback or the institutional investor by defaulting? I don't feel I'm getting a good deal with them anymore. Farewell Twino Hi jabardolas, can you suggest what other platforms you ment?
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