Strong interest for Lending Deposit's value proposition
Lending Deposit was invited by the leading European peer-to-peer lending conference, LendIt Europe, to present its value proposition at the Hilton London Metropole hotel on Wednesday, July 21st.
The presentation took place right after Eaglewood’s Simon Champ talked about their P2P Global Investments fund, which has assets under management of more than GBP 800m. A number of investors stayed on to listen to Lending Deposit’s Klaus Kukovetz describe the advantages of a more tailor-made and direct approach of benefiting from this new asset class.
In the following is a summary of the presentation.
Making online lending investments safe, simple & flexible
There are already many hundreds platforms looking for investors in Europe and the US alone. Some of them provide excellent risk reward relationships! But which?
To address this confusion and make life much simpler for investors, Lending Deposit offers two products to make online lending investments simple, safe & flexible:
- Time deposits: Very low risk product with attractive interest rates between 2 and 5% p.a. for anyone with more than EUR 10,000 / GBP 15,000 to invest.
- Advice and investment management: A tailored investment products with higher target returns for family offices and institutional investors wanting to commit at least EUR 250,000 / GBP 200,000 to the online lending market.
Time deposits are loans granted by investors to Lending Deposit (to be specific: to Marketplace Lending Investments Ltd., the UK based financing company behind Lending Deposit). In contrast to normal loans on crowdlending platforms, these loans are structured like time deposits, i.e. in a very investor friendly way: You, the investor decide:
- Amount: How much you want to lend
- Duration: How long you want to lend (3 months to 5 years)
- Timing: When you want to lend (now or in future) As a very simple, easy to manage and understand product, the interest rate simply depends on the duration of the loan.
In addition, our time deposits are also very safe because our company has very few operating costs and invests its own plus borrowed funds in a very well diversified portfolio of online lending assets. In the unlikely case that our diversification strategy should not be sufficient to buffer higher than expected loss rates in parts of our portfolio, we guarantee with all of our equity (and junior loans), which can never be less than 20% of total assets, to payback capital and interest to our time deposit lenders.
Of course, our time deposits are not covered by a state or other guarantee, and are therefore somewhat more risky than bank savings deposits in amounts small enough to fall under such guarantees.
For larger portfolios, Lending Deposit builds a high-performing, well diversified, customised and hassle-free lending asset portfolios for its clients. We do so the following way:
- Investment strategy definition: Based on the client’s risk profile, composition of other investments (bonds, stocks, real estate), investment horizon, currency preference, etc., we decide together with him/her on an optimal online lending investment strategy.
- Platform selection: Based on the strategy and given our in-depth knowledge of the marketplace, it is easy for us to recommend the most suited platforms to invest with. this is a critical step as most "alpha" out-performance can be earned by selecting the right platform.
- Account opening: Working with us, you, as a client, only need to sign a few papers and worry about nothing else
- Acquisition of assets: A critical and very time consuming step, which may require work every day of the year. With our data and investment experience, we ensure that we select the right assets with the right amounts and do this all ourselves, requiring no time investment by the client.
- Cash-flow management: Managing the cash-flows of thousands investments require a sound technology solution, which we provide our client with.
- Integrated reporting: Through our monthly, cross-platform reports, in an easy-to-understand form, we take a lot of nitty-gritty work out of online investing.