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How does Bondora market and advertise itself to potential borrowers?

Bondora's target borrowers are middle-income individuals who, because of regulatory or technical constraints, are underserved by traditional credit providers, and who are (i) receptive to online loans that would replace credit card borrowing, payday lending and short term loans as part of a personal finance solution, or (ii) unsatisfied with slow, branch-based loan origination processes.

More and more people are searching online for the best deals on products and services, raining from clothing and groceries to insurance and loans. Bondora offers a user-friendly application process conducted exclusively online, a fast underwriting process, and interest rates that are competitive in comparison to those of banks. However, even though Bondora competes with mainstream banks, it is important to note that borrowers who choose Bondora are not people who cannot obtain financing elsewhere. Bondora’s borrowers are no different than the banks’ customers.

Bondora markets itself to such borrowers through a combination of search engine marketing, television advertising, and email campaigns targeted at existing, former and prospective customers. The share of applications for each of these channels is 40% for cost per click (CPC) search engine advertising, 40% for TV and 20% for targeted email, respectively.

Bondora has invested substantial resources in brand recognition development and marketing automation tools that allow marketing to be scaled rapidly. Bondora has found, through numerous tests that increasing marketing spending in targeted channels increases the volume of loan applications without altering the overall risk profile of the applicant pool. In other words, Bondora can increase origination volumes by a factor of three through increased marketing spending alone.

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* Capital at risk. Investments made with Bondora are not guaranteed, nor is the preservation of value invested guaranteed. Please note that the yield achieved in past periods does not guarantee the rate of return in future periods. The yield of the Go & Grow Unlimited tier is up to 4% p.a. The yield for Go & Grow is up to 6.75% p.a. Before deciding to invest, please review our risk statement and consult with a financial advisor if necessary.