Viventor is a crowdlending platform I started investing in March 2019, mainly for diversification purposes. In this review, I share my experiences based on the first four months investing with Viventor.
As usual, the first half of the review contains key information, including my own opinion of Viventor. The latter half zooms in on the website and its functionalities.
Let’s get to it!
Table of Contents
Key information Viventor
Viventor is a crowdlending platform based out of Riga, Latvia and was founded in 2015. The platform focusses on various types of loans, however, the largest chunk of loans offered are consumer loans. By and large, the majority of loans come with a buyback guarantee.
A few key figures to get us started:
- 5,957 investors
- Over € 92 million cumulative investments and over € 1 million interest paid
- Interest rates up to 16%, average investor returns 13.53%
- 21 loan originators
The first minimum investment is € 50 and all loans come in Euro. If you are familiar with Mintos or Grupeer you will recognize several of the loan originators. Viventor comes with a secondary market and the possibility to Auto Invest.
Viventor loan supply by loan type and distribution of returns which averages to 13.53%.
And the key question, how risky is Viventor? It gets repetitive, but it is worth stressing over and over: P2P-lending inherently comes with risk and it comes down to the risk mitigation measures that are in place for investors.
Viventor aims to mitigate risk as follows:
- The majority of loans (like 99%), come with a buyback or payment guarantee
- Skin in the game for all loan originators of 5%
The buyback guarantee covers both principal amount and interest and is paid after two or three months of delay. This varies per loan originator.
A payment guarantee is a bit unique to Viventor and reduces investors’ exposure to borrowers’ late payments and default risk. In the case of Payment Guarantee, the Loan Originator guarantees monthly payments on behalf of the borrower.
The main risk by investing with Viventor is loan originator risk and this can be tricky to assess. Especially because not all loan originators are providing financial statements to look into. For this reason, I have decided to stick to a few loan originators which are profitable, Twinero and more recently Monify.
I invested with loan originator Aforti Finance and Factor as well. The company has defaulted on their payment to Viventor (and Mintos) and operations have been suspended. The impact on investors remain unclear for now.
Pros and Cons
- Slightly above-average returns, up to 16%
- Full buyback/payment guarantee
- Secondary market
- Auto Invest
- Decent track record
- Limited details on loan originators
- Diversification options limited
My Viventor Investments
I became an investor with Viventor in March 2019 by investing € 5,000. Ever since I have made one deposit and one withdrawal. At the time of writing, I have deposited a total of € 4,200.
The main reason for withdrawing a portion of my funds was the lack of diversification options when aiming for 14%+ returns. And funny enough, Monify was added about a week later. I will consider my options again in due course.
So far all things work out as they should and I haven’t encountered problems using the platform. I have set three Auto Invests with different priorities, 16%, 15% and 14% loans with buyback guarantee.
See my current Viventor portfolio here.
My Viventor funds by loan status, interest and loan originator.
Viventor deposits over time.
Viventor income over time.
My Opinion and Rating
Viventor provides market conform returns (14%+ is manageable) with a buyback guarantee and comes with a well functioning Auto Invest. Their track record is solid with four years of experience, more than most platforms out there. Additionally, the secondary market provides liquidity when needed.
The website and statistics are fairly good, even though the reported XIRR is bogus. And not to mention the yellow and black website design. But those are flaws I can look past. The main downside I see is limited loan originators offering loans within the range I aim for, as well as difficulties finding their financials and evaluating loan originator risk. In that regard I found this overview to be helpful on loan originators.
In my opinion, Viventor is a good platform for diversification and I’m happy keeping a chunk of my portfolio with the platform.
UPDATE: I have downgraded my rating to 3 after the Aforti payment default to Viventor. The impact on investors remains unclear.
My Viventor rating is 3/5.
Becoming a Viventor investor
Becoming an investor with Viventor is similar to other crowdlending platforms, but let’s go over the details either way. Becoming an investor requires completing three steps: providing basic information, personal details and verification documents. More information in the screenshots below.
Anyone who meets the following criteria can become an investor:
- Over 18 years old
- Own a bank account in one of the countries of the European Economic Area
- Successfully go through the verification process
Step 1: Basic information such as first and last name, e-mail, phone number and creating a password.
Step 2: Personal details
Step 3: Verification documents
Navigating the Viventor website
The website is very intuitive and I like the functionalities Viventor offers. I could do without the yellow and black, but ah well. By now I’ve gotten used to it.
The main menu consists of five options:
- My Account
- Auto Invest
- Account Statement
The My Account page is the landing page and provides a quick overview account in one glance. Funds invested vs available, earnings so far and other statistics related to your all-time transactions. XIRR is reported as well, but that does not correspond to the actual earnings. The actual XIRR is way lower.
Secondly, when you scroll further down you will find donut charts of your portfolio by:
- Loan Type
- Loan Status
- Loan Originator
The landing page displaying most of the relevant account details.
Donut charts on your portfolio showing the spread by various criteria.
The expected cash flow of incoming payments. This is rarely accurate because a substantial portion of your portfolio will go overdue and will end up being bought back
Auto Invest, the tool I rely on to make my life easy. The tool works very similarly to other auto invest tools out there. It’s possible to define multiple strategies and prioritize them accordingly. I have set three strategies and prioritized 16%, then 15-16% and lastly 14%.
You can set, among other things, the portfolio size, interest range, loan term, loan originators and buyback or payment guarantee. Auto Invest only includes the primary market and automatically reinvests returned principal amounts and earned interest.
It has an FAQ you can check out when setting up yours, but if you have any experience with Auto Invest tools Viventor’s is easy enough.
The initial Auto Invest screen
The Auto Invest menu where you can define your settings.
The Investments menu leads you to the Primary Market, Secondary Market, and your investments. You can choose to invest manually from the primary market or explore the secondary market. There are currently 17,804 loans listed on the primary market and 9,310 on the secondary market.
The secondary market typically has high-interest loans sold with a premium of 1% or at par. Lower yielding loans with a discount, but those are still unappealing to me typically. I don’t use the secondary market much, every so often I find uninvested funds and buy attractive loans on the secondary at par. Auto Invest doesn’t invest in the secondary market and 16% loans at par value on the secondary market are a great catch.
My Investments provides an overview of your investments and allows you to sell those loans on the secondary market if you desire. I have held all my loans until maturity so far.
The primary market with its filters. One 16% Monify loan is available.
Information typically available for individual loans. I primarily use Auto Invest and rarely ever look into loan details.
The secondary market: several 16% Aforti loans are available, however, the date is a bit odd. Added a day before the due date, however, this can merely be a coincidence.
“My investments” contain all your investments and the ability to sell your loans on the secondary market. I managed to snag a few Monify loans at 16%.
This speaks for itself. Make sure to add your investor number to your deposits so your funds are efficiently allocated to the correct account. I have tested withdrawing funds and all funds had been received in full the next day, works like a charm.
And lastly, the Account Statement. The menu I check to update my portfolio at the end of the month. You can see an overview of any period and the most relevant ones are already set for you. The statement lists all transactions by type and you can easily make out earnings. A tax report is available as well and just provides an overview of total earnings.
Additionally, you can also see all the underlying transactions if you scroll down and look into individual transactions and loans.
The account statement which groups all transaction types and easily provides earnings for a period.
The tax report for a period that shows total earnings, useful for completing your tax filings at year-end.
From the account statement, you can scroll down and find the individual transactions with links to the underlying loans.