Interview with Ricardas Vandzinskas, CEO of Hive5


Are you able to please clarify the enterprise mannequin?

Hive5* is a P2P market that provides European traders to spend money on group-owned mortgage originators. The primary mortgage originator on the platform is Ekspres Pozyczka which facilitates short-term payday loans in Poland and enterprise loans on to the mortgage originator itself. Quickly there shall be extra alternatives on the way in which: client loans from different European geographies, additionally several types of enterprise loans – BNPL loans, inexperienced loans, property loans and enterprise loans.


Why is Hive5 working with totally owned mortgage originators preferable versus working with exterior mortgage originators?

Key explanation why owned LO’s are far more safe than externals:

  1. Staff of fastidiously pre-selected high rank and impeccable popularity skilled administration solely.
  2. Company governance and full transparency in entrance of shareholders, traders and regulators. Full entry to common efficiency monitoring, enterprise planning and reporting.
  3. Management over danger urge for food. Our polish Mortgage originator makes use of a completely automated danger determination engine backed with superior self-learning analytics carried out over the massive information pool generated from a complete checklist of integrations. This resolution eliminates the fraud, and human issue and allows us to plan and management acceptable credit score danger ranges.
  4. Construct and handle considerably elevated group fairness reserves since owned mortgage originators contribute probably the most important share in returns on funding.


Buyers can select between a number of p2p lending platforms. Why ought to they spend money on Hive5 somewhat than any of your opponents? Is there a USP?

Worth proposal for traders:

  • Greater funding ROI. Till 17-10-2022, the rates of interest are elevated by +1%.
  • Buyback assure and pores and skin within the sport. Firstly, our Mortgage originator is obliged to Buyback the mortgage no later than 60 days after the mortgage cost due date, even when the mortgage is late or even when the end-borrower didn’t repay the mortgage to the lender. Each mortgage principal and accrued curiosity shall be repaid in full. Secondly, all our Hive finance group entities have a company coverage to allocate not less than 10% of fairness into the supply funds, which shall be used as a buffer to safe our traders’ funds in case our Mortgage originator faces some monetary difficulties.
  • Polish client loans. The largest client market in Europe with a steady and rising economic system.


Ri?ardas Vandzinskas, CEO of Hive5What’s the background of the crew?

Staff of execs solely. Secondly, by saying, “we’ve a crew of execs”, we imply it. As an example, Head of Operations Inga Zubanov? and Head of Advertising and Communications Karolina Staugait? labored on the second largest P2P platform within the EU. Alexey Kalevich, The Chief Know-how Officer, labored at a global group of economic corporations. Concerning our first mortgage originator, “Ekspres Pozyczka “, – all of the crew members have nice experience in high finance corporations. For instance, earlier than “Ekspres Pozyczka”, CEO Wojtek Homan was an government at “Provident Finance”. We love what we do.


You might be planning to broaden the lending operations into completely different markets. That are these, and what standards do you apply to pick out these markets?

Diversification and international scale

Lastly, as each educated investor is aware of, the need of diversification; quickly, traders might expertise broad diversification on one platform by investing in lots of several types of loans. Thus, we’ll relentlessly diversify inside two mainstreams:

1) Geographic: “hive5” will section its growth into three continents: Europe, Africa and Asia.

2) Merchandise: we’ve launched the platform by permitting traders to select from client and enterprise loans. That’s solely the start; quickly sufficient, we’ll introduce many extra secured enterprise lending merchandise, comparable to Inexperienced (or sustainable) loans, Gear leasing, Sustainable Property loans and BNPL powered by e-commerce.

Our goal EU nations with not less than 10 million inhabitants.


The p2p lending platform is presently registered in Croatia. How do you see the regulatory features of the way in which ahead?

The subsequent step in our licensing roadmap is to obtain up to date and clearly outlined ECSP regulatory framework pointers, which the European Fee shall announce in November this 12 months. Primarily based on these pointers, we’ll begin software preparation for the one licence “passporting” process permitting the supply of crowdfunding companies within the European Union and European Financial Space (EU/EAA).

We’ll hold you and all our traders consistently up to date on this matter, as we contemplate it a strong additional mile of belief in entrance of our traders.


What’s your view on the financial outlook in Europe, particularly concerning the nations your mortgage originators function in?

In distinction to different EU nations, the financial outlook of 38 million populated Poland appears a lot brighter from a client lending perspective, even in these excessive inflation instances. Firstly, Poland is likely one of the largest and fastest-growing EU economies with consistently rising buying energy per capita. Because of this earlier than coming into a turbulent financial cycle, this nation and its customers have gathered way more buffer to soak up the downturns than the others. On high, very shortly, we’ll see conventional banks getting much more conservative towards their present prospects, which can immediately construct an additional market of former prime prospects. Evidently, battle refugees from neighbouring Ukraine immediately fill within the gaps within the workforce and contribute to native consumption. For us, the next months imply a heavy concentrate on controlling default charges when utilizing our precision scoring engine; in easy phrases – extra inhabitants to be scored earlier than credit score approval with adjusted danger tolerance ranges.


What plans are on Hive5’s roadmap for the following six months?

Foremost KPI of Hive5* – not less than 1000 lively traders and three million EUR of the full mortgage portfolio by the top of this 12 months.

Additionally, we’ll hold the promise to supply diversification on our platform. By now, traders can spend money on client and enterprise loans from Poland. Quickly there shall be extra alternatives on the way in which: client loans from different European geographies, additionally several types of enterprise loans – inexperienced loans, property loans, BNPL and enterprise loans.

To make our platform stand out from a UX/UI perspective, we plan to implement extra superior and user-friendly options within the market. thanks Ri?ardas Vandzinskas for the interview.

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