Has the peer lending revolution finally started taking off in Europe? IsePankur, the Estonian based peer to peer lending network has announced last year that they started to allow anyone within the EU to invest on the platform, however it was still only the Estonians who could actually look for a loan. Recently, however they opened up the platform to Finnish residents.
This means that now anyone in Finland can request a loan using Isepankur.fi and many are doing just that. In the first 9 weeks of operations, IsePankur reported 13 million euro of loan applications in Finland. Combined with Estonia, they are now hitting over €800 000 of issued loans monthly. The month of September, for example, reached €859 500 and IsePankur reports a 20% month to month growth of this figure.
The idea of disrupting one of the largest industries in the world has become quite popular in our region. After all, even if you get a minuscule part of the pie, you are a billionaire. So companies such as Holvi, Transferwise and Isepankur are trying to do just that - making a dent in one of the largest, inflexible and controlled industries - Banking. But they are not alone, we have gotten in touch with Victor Lysenko a co-founder and CEO of Rocketbank in Russia.
Before we go into the details of how Rocketbank is aiming to take over the bureaucratic banking world of Russia, it is of interest to note that Lysenko is the former CEO and founder of Darberry in Russia. For those of you who do not know, the controlling stake of Darberry was bought by Groupon just six months after they launched. At that point it was renamed to Groupon Russia.
IsePankur, the Estonian peer-to-peer lending site, has now opened their platform so that anyone in the EU, can invest in Estonian private loans.
“We have worked for nearly two years to establish a legal and operational framework that allows anyone across the world to invest on isePankur," said Pärtel Tomberg CEO of isePankur. "This international diversification is unique to us compared to other peer-to-peer lending services as it allows investors to benefit from the different interest rates across the Eurozone. Additionally this will be the first time that private investors can invest directly in Estonia without committing large amounts of money”.
isePankur, the social-lending service, was established in 2008 and pioneered the concept of social lending in Estonia. The service allows individuals and small to medium-sized enterprises to borrow and lend between each other, skipping the whole traditional banking process. The company has just opened up a white-label of their service, allowing other institutions to take a solid social lending platform to their area.
For individuals looking to earn a return on their money, isePankur displays auctions of people looking for money. From there you can analyze the credit history of the borrower and do your own due diligence by asking additional questions. Lenders can then make a bid specifying the investment amount and interest rate, and the system will automatically choose the bids with the lowest interest rates and combine them into one loan.