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Mintos will introduce a new rating system so that investors can better assess the risk level of originators in its peer-to-peer lending market.
The pan-European company will give each originator who finances loans through its platform a rating ranging from 10 for low risk to one for high.
Mintos said it would increase lender and lending transparency and replace its ratings which provided a score based on the financial and operational stability of its originators.
The risk score will be calculated based on the quality and performance of an issuer’s loan portfolio, how it collects bad debt, how it handles buybacks and its cooperation with Mintos.
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The first version of the Mintos Risk Score will be unveiled later this month on the pages of loan companies in the market.
An updated version will follow later in November to appear in the filter options when selecting, investing, or viewing loans.
“In 2018, we introduced Mintos Ratings, the first risk assessment methodology developed by Mintos that we use to describe the financial and operational stability of credit companies in our market,” the platform said in a blog post. on its website.
“Since the launch, we have gained a lot of practical experience with this methodology and valuable feedback from our investors.
“As a result, this year we have been working to improve the way we assess and show the business aspects related to the risks of investments in our market. “
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