HOW ARE LOAN ORIGINATORS ONBOARDED?

Our Due Diligence procedure and Loan Originator scoring system is divided into five topics, where Monestro performs in-depth analysis.
We make sure Loan Originators onboarded to our platform are financially strong companies operating in stable and regulated environments throughout detailed examination.

1. Loan Originator trustworthiness and their AML compliance.

We ask for the Company’s and Group’s organisational structure charts to ensure that they are not overcomplicated. In that, we check that its management is trustworthy and has no negative feedback in the media. We also check that their current strategy and working ways are coherent with the current legislation. In the end, the final approval is made through in-depth analysis of legal documentation and main processes descriptions, ensuring the use of AML recognised practices and internal controls, and the use of fair main marketing and advertising strategies.

2. Loan quality and profitability.

To generate a more stable profit for our investors – in Monestro, we are primarily interested in less-risky high-quality loans. Each of the Loan Originator that would like to trade through our portal must provide their portfolio with historical records of successful loan performance and numbers of underperforming loans while having an overall comparison against industry-average ratios.

3. Ensure precise loan management and debt collection.

Our analysts make sure that Loan Originators have efficient loan quality and creditworthiness scoring models. We obtain an understanding of the main IT platform in use by them, their risk management policies, and the loan control and recovery process. All this has to show capability of fulfilling their obligations to our investors and us, ensuring timely fund transfers.

4. Company’s stability and long term accountability.

Loan Originators would be asked to provide annual reports for at least three years and monthly reports for the period from the last annual report and their forecasts. Our analysts are going through audit reports and the latest internal changes, ensuring that loan originators’ performance is profitable. We also focus on the company’s development plans – provided with set goals in order to make better forecasts in the long term.

5. Already onboarded Loan Originators.

The due diligence control continues after Loan Originator has been already onboarded in the system. We perform a quarterly review of Loan Originators’ financials as well as receiving audited financial statements annually. Furthermore, we continue to keep close track of each loan portfolio performance and make sure Loan Originators continue to fulfil their obligations and be accountable in line with the abovementioned criteria in the long run.