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What are the competitive advantages of Bondora?

Bondora intends to use its core strengths and the assets that have been built over the past eleven years to capitalize on what it believes is a good business opportunity.

Experience in serving lower and middle income borrowers

A clear focus on creating cost effective ways to serve lower and middle-income borrowers and payday loan borrowers has allowed Bondora to deliver strong risk-adjusted net returns on its loan portfolio while keeping customer acquisition costs under control.

Proprietary underwriting, collection and recovery processes

Unlike many other lenders, Bondora conducts thorough background checks on prospective borrowers, which include income and expense verification. Combining transactional and credit bureau data, as well as big data allows Bondora to assess credit and fraud risks quickly and cost effectively to identify Bondora loan products that meet customer needs. Servicing practices that have been optimized and developed over several years provide complete control over accounts, helping to ensure loan repayments are made as quickly and efficiently as possible.

Single platform for borrowers across Europe

Bondora has developed and implemented technology designed to maintain a single technical platform for its products and services, regardless of borrower residency, language and currency. This proprietary technology affords Bondora extensive economies of scale; functional improvements and costs are shared across all markets in which it operates.

International business architecture

Bondora aims to capitalize on the unique and best-in-class skills available across multiple jurisdictions, combining cost-effective, efficient and skillful assets and people into a single organization. Bondora leverages Estonian banking infrastructure, German technology management, Estonian application development skills, cost-effective Fintech back-office operations and American marketing know-how.

Advantageous legal entity domicile

Bondora’s legal entity is based in Estonia, where corporate taxes are not paid when income is generated, but when profits are distributed through dividends. With a public debt-to-GDP ratio of 9.7% and solid credit ratings from the three main rating agencies, AA- (S&P), A1 (Moody’s) and A+ (Fitch), Estonia represents a sound eurozone economy. Its level of economic freedom is viewed as being among the highest in the world, and the business environment is progressive. 

Estonia has an ample supply of qualified IT workers with experience at companies such as Skype, Grabcad and TransferWise, and relatively liberal labor laws in comparison to other European countries. It also has close cultural and economic ties with Finland, including a similar language, which enables Bondora to effectively operate its Finnish business without having a local office.