MICROCAPITAL BRIEF: IsePankur’s Online Loan Site Bondora Receives Peer-to-Peer Lending License From UK’s Financial Conduct Authority

Bondora, a website owned by Estonia’s isePankur that allows individuals and enterprises to borrow from and lend to each other, recently announced that it obtained a peer-to-peer lending license from the Financial Conduct Authority (FCA), a regulatory agency in the UK.

According to Mr Pärtel Tomberg, CEO of Bondora, “The authorization and regulation are good news for our customers…[who] will greatly benefit from the supervision of the FCA as well as the additional requirements Bondora needs to comply with in order to maintain the authorization.” These additional requirements are related to FCA rules regulating business disclosures, promotions, dispute resolution, liquidation planning, minimum capital requirements and other mechanisms for protecting client money.

From its inception in 2008 through May 2014, Bondora has issued total loans equivalent to EUR 16 million (USD 22 million). From January 25, 2011 to May 7, 2014, the company reported an average net return on investment to its lenders of 21.9 percent. This includes time during which the service was known as isePankur. As of May 2014, the company services approximately 90,000 clients in 29 European countries, offering loans ranging from EUR 5 (USD 6.9) to EUR 10,000 (USD 13,800).

By A’kos Szebeni, Research Associate

About Bondora (Formerly Known as isePankur)

Established in 2008, Bondora (formerly known as isePankur) is a cross-border, online lending platform that allows individuals and small and medium-sized enterprises to borrow from and lend to each other in amounts as low as EUR 5 (USD 6.9). In 2012, the company expanded its offering to include software products and technology licensing to other online lending companies as well as “social banking” organizations. From its inception in 2008 through May 2014, Bondora has issued total loans equivalent to EUR 16 million (USD 22 million). From January 25, 2011 to May 7, 2014, the company reported an average net return on investment to its lenders of 21.9 percent. This includes time during which the service was known as isePankur. As of May 2014, the company services approximately 90,000 clients in 29 European countries.

Sources and Additional Resources

Information provided by Bondora to MicroCapital, May 2014

MicroCapital, April 5, 2014, “‘LendIt 2014,’ May 4 – 6, 2014, San Francisco, California, USA,” https://www.microcapital.org/microfinance-event-lendit-2014-may-4-6-2014-san-francisco-california-usa/

MicroCapital, January 7, 2013, “Online Microfinance Fundraiser Wafaa Provides Interest-Free Loans to Muslims,” https://www.microcapital.org/microcapital-brief-online-microfinance-fundraiser-wafaa-provides-interest-free-loans-to-muslims/

MicroCapital, March 12, 2012, “Estonian Lending Website isePankur.ee Launches Social Banking Software,” https://www.microcapital.org/microcapital-brief-estonian-lending-website-isepankur-ee-launches-social-banking-software/

MicroCapital, May 5, 2011, “17 Websites Now Allow Individuals to Commit as Little as USD 20 as Microfinance Loans,”
https://www.microcapital.org/microcapital-brief-17-websites-now-allow-individuals-to-commit-as-little-as-usd-20-as-microfinance-loans/

MicroCapital, April 25, 2011, “Zidisha Online Lending Platform Offering Borrower Performance Ratings, Facilitates $50k in Loans,”
https://www.microcapital.org/microcapital-brief-zidisha-online-lending-platform-offering-borrower-performance-ratings-facilitates-50k-in-loans/

MicroCapital Universe profile: Bondora (Formerly Known as isePankur), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=isePankur

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