We have interviewed Pärtel Tomberg, CEO
, an Estonian peer-to-peer lending platform for private persons
, that is entering the Italian crowdfunding market
1. What is Bondora, and how does it work?
«Bondora is a P2P lending platform bringing together borrowers, who wish to take a peer-to-peer loan and investors, who wish to invest in these loans.
The platform is generally as automated as possible. Investors can use the fully automated Portfolio Manager, Portfolio Pro for setting their own criteria for loans or also the API which enables them to
The platform is meant as an investment opportunity for beginning investors as well as for investors with years of investing experience who prefer investment options tailored to their needs.
30,385 investors have already invested EUR 108 Million through Bondora and have received EUR 16 million in interest. 78% of investors have earned over 9% annually».
2.Who are the founders and how is the team divided?
«Pärtel Tomberg is the CEO and the co-founder.
A two-tier management structure
consists of Supervisory Board
and Management Board
. Management Board is comprised of two members, Pärtel Tomberg
and Rein Ojavere
. The Supervisory Board
is currently comprised of three directors who were appointed at a general meeting of shareholders: Joao Monteiro
, Mati Otsmaa
and Phil Austern
The office is located in Tallinn, Estonia and the team consists of Borrower Department and Investor Department, including Investor Relations Team, Borrower Support Team and developers».
3. How does lending crowdfunding work, and how is Bondora way of using it?
is a method of debt financing that enables individuals to borrow and lend money without the use of an official financial institution as an intermediary
The average loan amount taken through Bondora is currently around 2300€. The average return on investment for investors is between 9 and 16 percent
. In general, eight in ten investors earn more than 9 percent return within the platform.
Bondora itself has been profitable since July this year
and has a very ambitious growth strategy - Bondora wants to become the largest P2P platform in the Eurozone
4. What is the legal framework of lending crowdfunding in Estonia and in Italy? What is your opinion regarding the future legislation in this sector, especially concerning cross-border crowdfunding?
«The Estonian regulator is one of the most progressive ones in Europe in terms of adapting to new business models. The credit market is very well regulated and there is also a strong association that has enforced self-regulation on the industry. That type of regulation is only paralleled in the UK. The rest of Europe is still lagging behind regulation and understanding of this asset class».
5. How is lending crowdfunding competition in Italy, and in Estonia? And why did you decide to enter the Italian market?
«Italians currently lack simple, safe and trusted online investment opportunities. This is where Bondora comes in.
There are lot of savings in Italy as well as many people looking for investment opportunities, but products offered by the traditional industry provide either very low, or even negative, returns or are extremely complex for people outside of banking industry to comprehend. I'm pretty sure that even most bankers have no clue what they are selling.
Estonia is the most competitive market in Europe in terms of crowdfunding. Although the country is small, we have the highest share of crowdfunding to GDP per capita ratios across Europe. This competition has really pushed us to the forefront of the industry. Now we want to use this experience and know-how to also provide a simple, safe and trusted investment opportunity for the Italians».
6. What is Bondora opinion about the current state of crowdfunding, especially of the lending-based model?
«We are still in the early days of the market development. Despite Bank of America launching credit cards already back in the 60s, the market is still growing today globally. Bondora invests a lot in product development and security of its products and that in time will help reach mass market adoption».
7. Bondora information.
«Currently 30,000+ investors from 85 countries. Founded in 2008 in Tallinn, Estonia.
Gives out peer-to-peer loans in Estonia, Finland and Spain, to private persons and up to 11,000 € / up to 5 years.
30,385 investors have already invested EUR 108 Million through Bondora and have received EUR 16 million in interest.
78% of investors - including 10,131 from Estonia - have earned over 9% annually.
Office address: A.H.Tammsaare tee 47, Tallinn 11316, Estonia
Estonian company number 12831506