Transparency and honesty are treasure in today’s time. It is often seen that companies, especially those related to financial technology, hide the actual risk from the investors. In order to attract more investors, they try to play with their words and hide the terms and conditions that may pose a loss to the investors.
However, transparency is one of the core values practiced at Monestro. We believe in strengthening the bond and maintaining the trust of our investors. This is what makes Monestro different from the other peer to peer platforms.
Let’s look at some ways Monestro is keeping its operations transparent.
Transparency
1. Loan Originators’ performance record
We provide a comprehensive record of each of our Loan Originators available on our platform. There is a section for the LOs on our website that includes details such as loan portfolio, financials, skin in the game and buy back policy.
This makes the life of an investor easy, it helps to compare the performance of the Loan Originators and decide according to their needs.
2. Access on Wiserfunding
Wiserfunding is a FinTech company that specializes in assessing the credit risk of small and medium-sized enterprises (SMEs). Their online platform assists businesses that require obtaining finance or lenders. Wiserfunding is an external tool which is controlled by the Artificial Intelligence of a third party. The data will be provided by Monestro which will be converted into interpretable reports that can be accessible and understandable for a common investor. These statistics can be accessed monthly and annually. This is how transparent Monestro is dealing with its investors.
This platform will provide a wide range of data including:
- Summary
- Financial Overview
- Risk Metrics
- Bond-Rating Equivalency
- Highlights
- Corporate governance.
3. Internal Communications
Monestro remains connected on multiple social platforms. We keep ourselves extremely accessible to our clients and everyone. You can choose any of the social platforms and write to us. Our marketing will get back to you.
If you have any questions regarding our services and platform in general, please do not hesitate to contact us by clicking here.
Security
At Monestro, loan security is dealt-with with high priority and sensitivity. Our highly skilled team is ensuring the security of the loans in numerous ways. Some of them are listed here.
1. Skin in the game
At Monestro, all the Loan Originators are obliged to put some amount of money for the investors’ security. They must keep a certain percentage of each loan on their balance sheet. Skin in the game refers to how much of their funds the Loan Originator retains in each loan. For example, if a Loan Originator with 10% Skin in the game issues €1000 loans to a borrower and then places this loan on the Monestro Marketplace, only €900 of this loan will be available for investors to invest in; the Loan Originator will keep €100 on their balance sheet. Skin in the game ensures that the Loan Originator’s interests are closely aligned with the investor’s interests – both sides have a stake in the loan.
2. Buy Back Obligation
Monestro’s Buyback obligation policy is designed to protect investments from borrowers’ defaults. All our lending companies abide by this rule. This policy is applicable when a borrower fails to make payment for more than 60 days; the Loan Originator will repurchase the investment for the principal’s nominal value and accrued interest. It is valid until the loan originator is in the business. The investor does not have to apply for a buyback option; it automatically comes into action once the borrower defaults for more than 60 days.
Conclusion:
Monestro runs its platform on two core principles that are transparency and security.
We do whatever it takes to deliver investors’ satisfaction. Some of our well-known practices are:
- Loan originator performance record
- Wiserfunding reports
- Social connection
- Skin in the game
- Buy-back obligation
You may also like to read: How IS MONESTRO MAKING YOUR P2P INVESTMENTS SAFER?