Robocash is one of the crowdlending platforms I joined for diversification purposes. In this review, I share my experiences based on the first 4 months investing with Robocash.
As usual, the first half of the review contains key information, pros and cons and my own opinion of Robocash. The latter half provides in-depth insights into the website and highlights all the possibilities.
Let’s dig into it.
Table of Contents
Key information Robocash
Robocash is a crowdlending platform focussed exclusively on consumer credit and started its operations in February 2017. The platform provides an opportunity to invest in the loan portfolio of Robocash Group with a 100% buyback guarantee. The group activities started in 2013 with the lending service Zaymer.ru.
Robocash’s activities are located in Croatia, but its primary physical office is located in Latvia.
A few key figures to get us started:
- 5,850+ investors as of the end of March 2019
- Over € 58 million capital raised as of the end of 2018
- Interest rates of 12%
- 7 loan originators
The platform offers consumer loans, often up to 30 days, from Russia, Kazakhstan, Spain, Philippines, and Vietnam. Loans come in Euro. The minimum deposit is € 10.00 and the minimum investment in a loan is only € 1! which allows for quick reinvesting of interest. Robocash does not charge fees to their investors.
The platform is fully automated and you can not manually invest in loans. You create a portfolio, set your preferences and the platform does the work for you. Set and forget! More on that later.
Robocash Group is profitable as the company has published its unaudited financials here.
To summarize, a revenue of 100.5 million USD and a profit of 11.4 million USD.
The Group will have audited financials for the year 2019.
Examples of consumer loans from Kazakhstan with 12% returns.
And on to risk – how risky is Robocash? As I always like to emphasize: P2P-lending inherently comes with risk and it comes down to the risk mitigation measures that are in place for investors.
Robocash mitigates risk as follows:
- All loans come with a buyback guarantee
- Robust credit check of the borrower based on numerous variables
- In case of a bankrupt loan originator, Robocash will act as trustee of the investor and will take control over the receivables
The platform is already around for two years and has a solid track record so far. On top of that, all of the loan originators are part of the Robocash group and the group is profitable as shown under Key Information or below.
Unaudited financials of the Robocash group as well as the 2019 forecast.
Pros and Cons
- Market conform returns of 12%
- Buyback guarantee for all investments
- Auto Invest
- Loan supply serves demand
- Start investing from € 10
- Website is appealing and easy to navigate
- Robocash Group is profitable
- A secondary market for installments which have a term up to one year
- Market conform returns of 12%
- Maximum investment of € 10,000
- Limited diversification possible
My Robocash Investments
I became an investor with Robocash in March 2019 by investing € 2,000 and that is still the amount I have deposited with the platform.
My entire portfolio is 12% microloans in Euro. Up until now, returns have been in the range you would expect. The nature of microloans is such that a reasonable chunk of your portfolio will go overdue. This causes some volatility but is not a concern. The buyback is guaranteed and interest is paid regardless.
Auto Invest now handles my investments entirely. Returns are set to be re-invested. It’s literally ‘set and forget’. Robocash is the most hands-off platform in my portfolio.
Find out more about my current portfolio here.
Robocash deposits over time.
Robocash income over time, a little volatile sometimes but that will smooth out with time.
My Opinion and Rating
I like Robocash for its simplicity. The platform is easy to use and requires no effort at all, it is completely hand-off. The website is easy to navigate, all loans come with a buyback guarantee on principal amount and interest. On top of that Robocash Group is profitable and will publish audited financial statements. I have not experienced any cash drag at all either.
The main downsides for me personally are the limited options to diversify and the fixed interest rate of 12%. Nevertheless, Robocash is a great platform to diversify and I like having it in my portfolio.
My Robocash rating is 3.5/5.
If you’re considering becoming an investor with Robocash I would appreciate it if you sign up through this link. It will help me run this blog at no additional cost for you.
Becoming a Robocash investor
Registering with Robocash is simple. The platform collects the usual personal information. You are eligible to invest with the platform if you meet the following criteria:
- Over 18 years old
- Successfully go through the identity verification process
- Bank account in the European Union
- Citizen of an EU country or Switzerland
The term Robocash is very fitting – the platform is completely automated and provides steady cash flow.
Step 4 – Setting up Auto Invest
This is how I have set up my settings:
- Maximum investment of € 25
- Interest rates of 12%-15%, however, all loans are 12% currently
- Repayment range of 1-90 days
- I have chosen for the option to “Reinvest full amount” because I do not plan to withdraw funds any time soon. Returned funds will be reinvested as soon as possible.
I have also ticked the boxes Invest partly, Auto-deposit and Accept secondary market as well I have chosen to include all loan originators.
Especially the Auto-Invest is great because it allows new deposits to invested immediately.
The last step of the registration process is setting up your Auto Invest portfolio.
Navigating the Robocash website
The website is simple, intuitive and has most of the options you will need. All the options can be found on the menu at the top of the landing page:
- My Investments
- Account Statement
Let’s walk through the options one by one.
After logging in you arrive on the Summary page. In one glance you see your total funds, earned interest and interest accrued but unpaid. Also current vs overdue loans of your portfolio, as well as the balance of uninvested cash and average interest rate.
The Summary menu of my account.
The Invest menu allows you to manage your Auto Invest portfolio(s). It is possible to create multiple portfolios and change settings the way you prefer.
The Invest menu – I have set up only one Auto Invest portfolio.
My Auto Invest settings.
The “My Investments” menu contains all your investments, active and closed. You can filter your investments by various criteria such as Type, Creditor, Amount, Status and Term.
I find this menu useful if I want to find out when overdue loans will be bought back.
An overview of my oldest active loans.
The Account Statement menu allows you to generate account statements and review all the transactions related to your account. There are options to generate summary statements that are pre-set such as Current Month, Current Year, etc. as well as the possibility to use custom date ranges.
The Account Statement menu. It provides summary statements and all transactions.