Mintos review 2020
Check out our Mintos review, and see if the platform is for you.
Review of Mintos
We find the return compared to the safety favorable.
The Mintos marketplace is very beginner-friendly.
Mintos has made a lot of safety measures.
Investors get an average return of 12.02%.
We Don’t Like
Summary: Mintos is one of the absolute best P2P platforms for both the beginner and the experienced investor. On the platform, you get some of the best opportunities to diversify your portfolio in the whole P2P lending industry – and with an average return of 12.02%, there are long between platforms in that league. We understand Mintos’ popularity among its investors.
It’s completely free to use their platform
Last updated: April 6, 2020
Mintos review 2020 – How safe is Mintos?
There has recently been a lot of buzz around the European P2P lending platform Mintos. Therefore, we decided to find out how secure the platform really is for its investors.
So if you are considering investing through the platform, we highly recommend that you read this Mintos review carefully. Because in the review, we will make our best assessment of how secure the platform is, as well as including some tips and tricks.
We have even invested through the platform for an extended period of time, in order to make the best Mintos investing review possible.
This Mintos.com review ended up being quite long. So if you are in a hurry, you can use the navigation below to find answers to what you want to know more about. Of course, you can also choose to read the review from A-Z. But as you read, please be aware that this review is based on our own Mintos experience, and should not be considered financial advice.
Learn about the following in our Mintos review:
What is Mintos?
Mintos is one of Europe’s largest P2P lending platforms. Since entering the crowdlending market at the beginning of 2015, they have now grown to be the largest platform of its kind. At the time of writing, they have over 285,000 registered investors from 66 countries.
They have offices in several continents, from which more than 50 people are employed. However, they are constantly expanding their business and hiring more people to meet the demand for their product.
Within fintech things are moving fast, but here Mintos is not idling. They are constantly making improvements for investors, while adding new loan originators and features to the platform.
It is probably also one of the reasons why Mintos is an award-winning platform. Among other things, they have won the Altfi People’s Choice Award in both 2016, 2017, 2018 and 2019:
In less than 3 years after their launch, Mintos managed to become a profitable P2P lending marketplace. Part of their great success can probably be imposed on their ability to solve some of the scaling problems other crowdlending platforms often enter.
Unlike some other P2P platforms, Mintos works by simply being a marketplace that connects loan originators and investors. This makes it a lot easier for them to scale, as they are not issuing the loans themselves.
The fact that Mintos’ platform is very scalable is good for you. This means that the platform will most likely not run out of lucrative investment opportunities in the near future.
Excellent platform for diversification
The fact that Mintos uses a wide range of loan originators instead of issuing the loans themselves means that they now have a platform with many different types of loans, in many geographical locations, issued in different currencies, from many different loan providers.
Mintos offers loans in the following areas:
- Car loans
- Mortgage loans
- Forward flow
- Personal loans
- Short-term loans
- Invoice finance
- Business loans
- Agricultural loans
This means that on the platform you get a unique opportunity to diversify your portfolio as broadly as you want within the loans space.
So if you are looking for a great platform to diversify your investments, and thereby lowering your overall portfolio risk, Mintos is indeed a splendid choice.
In the following part of our Mintos review, we will explain some of the main features on the platform, and why they are important for you as an investor.
1. Mintos buyback guarantee
One of the great things about Mintos is the buyback guarantee. Essentially, the buyback guarantee is a guarantee issued by the loan originators to the investors. Through the guarantee, the lending companies on Mintos promise to buy back a particular loan – if the borrower is more than 60 days late with payments. Here you will be paid both the nominal value of the outstanding principal as well as the accrued interest.
However, not all P2P loans on Mintos are protected by a buyback guarantee. On the individual loan, you will be able to see if it is protected by a buyback guarantee by looking for a shield. Loans marked with a shield on the loan list are protected. If you go to the Mintos website, you will be able to check out how this looks.
Please be aware that the different lending companies on Mintos can have different terms. For example, it is not certain that all the lending companies are paying interest on delayed payments. By visiting the primary or secondary marketplace on Mintos.com, you will get a better idea of how the buyback guarantee works for individual loans. You can visit the website here.
2. Mintos secondary market
Mintos was one of the very first P2P platforms in Europe to introduce a secondary market to its investors. This enabled investors who invest in Mintos loans to sell their investments ahead of time. The feature quickly became very popular, and a lot of other crowdfunding platforms later implemented similar features. However, to this day Mintos still have one of the best secondary markets in the industry.
We have heard of people who have sold millions of Euro worth of loans in just a few days on the secondary market. So if you want to sell a smaller portfolio of loans then it should not take long. The fact that you can sell so large quantities of loans in such a small amount of time is something that is fairly unseen on many other platforms – which is why we couldn’t make this Mintos review without mentioning it.
It is really easy to buy and sell loans in the secondary market. If you would like to buy a loan there, you can find the secondary market as shown above on Mintos website. Here you can find exactly the loans you want to buy through various filters. Some investors try to find good deals in the secondary marketplace, but we do not recommend that you do it manually as it can be a very time-consuming process.
In Mintos secondary market, it is possible to invest via auto-invest in the same way as you can in their primary market. In our opinion, it makes much more sense, since you do not have to spend hours manually selecting the loans.
If you want to sell your loans, then the secondary market is a great tool. Here you can sell the loans you own in a very short time. You can either choose to sell individual loans or sell all your loans at once. You should be aware that there is a 0.85% selling fee on the secondary market. The fee only applies if you are a seller and not if you are a buyer.
If you need cash quickly, you may want to consider selling your loans at a small discount. Then they will be picked up more quickly by investors looking for a bargain. At Mintos, it is possible to sell and buy loans with discounts, at par value or with a premium on the secondary marketplace. Below you can see how the loans are typically distributed:
As you can see, most loans on the secondary marketplace are sold at a discount. That’s because the investors who want to sell their investments often sell at a discount to get cash more quickly. However, you can use this to your advantage by buying up a lot of bargains.
3. Mintos app
In March 2019, the platform established a dedicated Mintos team containing 11 persons for developing an app for the investors. In December 2019, a beta version for iOS was released, and later, in January 2020, the Android version followed.
With the release of a mobile application, Mintos aims to make it easier than ever to invest in loans from its marketplace. But at this point in time, not all features you can find on the website are yet available on the mobile application. However, Mintos is currently working towards implementing more of the web features on the app. But at the time being, many investment features are not available for mobile. And even if you want to use the Mintos mobile app, you will still have to sign up via the website first.
4. Mintos loan originator ratings
Another feature we think should be mentioned in this Mintos review is the risk ratings on the platform. In 2018, Mintos became the first P2P lending platform in Europe to introduce loan originator credit ratings. So whether you deal with loans on the primary market, the secondary or when you are making use of the auto-invest features on the platform, you will quickly notice a risk rating connected to the loan originator of the respective P2P loan.
The risk rating ranges from A+ to D, where the rating A+ is for loan originators with the least risk, and D is for the riskiest loan originators.
Essentially, the Mintos rating is made to make it easier for the average investor to understand the risk associated with a Mintos loan originator of a specific loan on the marketplace. If a loan originator has a bad rating, there could be a higher chance that they will not be able to fulfill their obligations like buying back loans with the buyback guarantee.
The rating is based on a specific assessment methodology conducted by Mintos. The methodology contains five main areas which are operating environment, company profile, management and strategy, risk appetite, and financial profile. This methodology is very similar to how credit rating agencies like Fitch rate investments.
The operating environment counts for 10% of the overall risk rating of a loan originator. In this part of the risk rating, Mintos take a look at the regulatory environment surrounding the lending company. Here, effective regulatory institutions and law enforcement are viewed positively.
Company profile counts for 15% of the overall risk rating of a loan originator. Here, factors such as market position, product offering, and organizational structure are assessed.
Management and strategy count for 15% of the overall risk rating of a loan originator. When considering the management and strategy, Mintos looks at the experience of the management in the company as well as their track record. Other factors like budgeting quality, timeliness and transparency are also assessed.
Risk appetite counts for 20% of the overall risk rating of a loan originator. Here, factors such as underwriting standards, market risk and risk controls like usage of credit bureaus are assessed.
Financial profile counts for 40% of the overall risk rating of a loan originator. This is naturally one of the most important parts of the rating due to the fact that a company with a bad financial position can impose a lot of risk to the investors. When Mintos assess the financial profile of a company, they do so by looking at loan portfolio metrics such as the amount of non-performing loans. They also look at the overall profitability of the company as well as factors like leverage, funding, and liquidity.
According to the assessment methodology, roughly speaking, the loans with low risk should be safer than the loans with moderate risk, and so on.
So before you start investing in P2P loans with high risk on the platform, we highly recommend that you think about your own risk tolerance. You might benefit from looking at the image above before making various investments and auto-invest strategies on the platform.
5. Perks for investing over €50,000
A not very commonly known fact about Mintos is that if you invest over €50,000, you will be considered a pro-investor and obtain VIP status on the platform. This feature, for investors with a larger portfolio size, was introduced at the end of 2018.
If you invest over €50,000 on Mintos, you will get some perks that are not available to other investors. For example, a personal Investor Service Associate will be connected to your account. With that person, you can discuss questions about the platform and much more over phone or email. You will also be able to get priority customer support. The benefits of being a pro-investor include:
- Early access to new features on Mintos
- Get top priority at Mintos customer support
- The option to request custom made investment rapports
- Discuss things with your personal Investor Service Associate
To become a pro-investor, you will have to add €50,000 or more to your investment account after you sign up on the platform.
6. Mintos invest and access
In June 2019 a new feature was introduced on the P2P investment marketplace. This feature is called Mintos Invest & Access and aims to make it easier to invest at Mintos.
In the following, you can see how Invest & Access compares to the other ways of investing with Mintos:
Mintos Invest & Access works a lot like an auto-invest strategy. But if you choose to invest via Invest & Access instead of making a custom auto-invest strategy, you won’t have to continuously add new loan originators to your auto-invest settings as they are connected to the marketplace. This makes Invest & Access an excellent choice if you want the most hands-off investment experience.
The biggest drawback of using Mintos Invest & Access, instead of a normal auto-investment strategy, is that you won’t be able to tailor the investment strategy.
However, Mintos Invest & Access is probably the best choice for new beginners that are not certain that they want to have their money tied up on the platform yet. This is due to the very fast access to your money if you want to sell your investments.
Would you like to try out Mintos Invest & Access? Then click the button below to visit Mintos and create an account. From here, you can easily go from reading this Mintos review to start using Invest & Access for your investment portfolio:
What rate of return can you expect?
The average net annual return for investors on the platform is around 12.02%. Since this is what investors receive on average, you can reasonably expect the same return rate.
But that’s just the average. If you have a higher risk appetite, it is also possible to choose loans with different local currencies with the possibility of higher returns.
Do you have an even higher risk appetite? Then you might want to check out our Crowdestate review. At that real estate crowdfunding platform, it is possible to invest your money with an even higher average net annual return. You invest in real projects that develop the world. However, the risk is also slightly higher than with Mintos.
Who can invest via Mintos?
It is both possible for individuals and companies to invest with Mintos. This makes the platform an obvious choice whatever the structure of your economy is.
As an individual, there are a few, but clear rules for what it takes to enable you to invest through the platform:
- Minimum age of 18 years
- Bank with AML / CFT equivalent to the EU
- Successfully verified your identity by Mintos
If you live up to the above requirements as an individual, you can invest through the platform.
If you would like to invest as a company, this is also possible. Here, the requirement is also that you must have a bank account in the European Union, and that your company is registered in the EU or third countries that have AML / CFT systems similar to those found in the EU.
From where can I invest?
Because there are very few requirements to be allowed to invest through the platform, it is possible for the vast majority of people to invest via Mintos. Below you can see a map of which countries the current investors are from. This will give you a good indication of whether or not it’s possible for you as well:
As you can see, Mintos is an almost world-wide platform with users spread all over the world. So most likely, also you can reap the benefits of using Mintos.
If the map is not marked with investors in your country, it does not necessarily mean that it is not possible for you to invest through the platform. As from time to time investors come from new countries to the platform, you may be the first investor in your country.
Would you like to sign up as a Mintos investor? Then click the button below to go from reading this Mintos review to actually investing on their platform:
Depositing and withdrawing money
In the following, we will share how you can deposit and withdraw money to and from your account.
One of the first things you need to do when you start investing on Mintos is how you go about depositing money into your account. This can be done using a lot of different methods, which are dependent on what country you are from.
When you for the first time start the depositing process, you will be asked to verify your identity with a national identity card (EU only) or passport. When you have finished doing so, you will be able to select your desired method of depositing funds to Mintos.
Before you can withdraw any money from Mintos, you must make sure that none of the money you want to withdraw is currently invested.
If you have some money you want to withdraw invested in P2P loans, you must first sell them on Mintos secondary marketplace. You should be able to sell any loans within a short amount of time due to the high number of active investors on the secondary market. When you no longer have your money invested on Mintos, you can easily withdraw it.
To begin withdrawing money from the peer-to-peer lending platform, you must head to your account and click “Deposit / Withdraw / FX” and then click “Withdraw”.
You can only transfer money to accounts that are connected to your Mintos account. All accounts which you have previously used to transfer money to Mintos are ready for you to withdraw to.
If you want to make a withdrawal of your money to another account than the one you deposited your money with, it’s recommended that you transfer at least 1 EUR from the new account to your Mintos account. This will connect that account to your Mintos account.
Withdrawing money from Mintos usually takes 1-3 days. You won’t be charged any fees from Mintos by doing so. However, your bank or money service provider might charge a fee.
Is Mintos safe to use?
Whether Mintos is safe to use depends primarily on 4 things: How secure the platform is, how secure the investments are, how secure the Mintos loan originators are, and how secure the company is. In the following we will take a look at what measures have been taken to protect you as an investor:
How safe is the platform?
As the first security-related thing in this Mintos review, we have taken a good hard look at how secure your account really is.
We have looked at is whether or not it’s possible for you to activate two-factor authentication on your account. Here we found that you can use the Google Authenticator app or other apps that are compatible with Google Authenticator.
Two-factor authentication can help to protect your account against unauthorised access to your account, phishing attacks, and many other cybercrimes. When you have activated two-factor authentication, people who could have your password must also have access to your phone in order to log in.
The two-factor authentication security of your account is not mandatory. This means that it’s up to you to decide how easy you, but also potential intruders, should be able to access your account. We highly recommend activating two-factor authentication on your account for maximum security. If you activate two-factor authentication on your account, we believe that your account is fairly safe.
To activate two-factor authentication on your Mintos account, you should just go to your accounts security settings. Here you can choose to enable two-factor authentication. The process is described clearly so it’s actually easily done.
How safe are the investments?
In this Mintos marketplace review, we also want to address what measures the company has made, in order to protect you as an investor, in regards to the alternative investments you can make on the platform.
Loan originator risk
Loan originators carry a potential risk for investors if their company lacks in management, finance, etc. Therefore the Mintos risk management team always perform a complete risk assessment of any loan originator wanting to join their platform.
In their due diligence process of the loan originators, they perform a thorough analysis of the management quality, credit scoring, underwriting policies, financial statements, etc. And even if the loan originator gets accepted by Mintos, the loan originator will continuously be evaluated.
The loan originator risk management isn’t, however, bulletproof, as a case with Eurocent proved in 2017. Here Eurocent actually ended up in bankruptcy. It is therefore important for us to address the importance of diversifying between several loan originators.
Skin in the game
Another thing that Mintos practice to protect their investors is to let every loan originators have skin in the game. This means that if a loan originator has €1,000 in loans that they would like to have issued to investors, they must, for example, keep 10% themselves. This means that they can issue loans of €900 to investors while having to keep a €100 stake in the loans themselves. So in case of loans default, the loan originator also stands to lose money.
In this way, it is ensured that there is no conflict of interest between the loan originators and investors.
What happens if a loan originator goes bankrupt?
It is quite unlikely that all the loan originators will continue to do business without problems. Therefore, it is important that you diversify between them. Fortunately, Mintos has in recent years added new loan originators at a fast pace. So there should be plenty to choose from.
Our advice: Diversify between a lot of loan originators.
Since its inception in 2015, Mintos has only had problems with one loan originator called Eurocent. The company first encountered problems after just 4 months on Mintos platform. Since then, Eurocent actually ended up in bankruptcy.
But in spite of the bankruptcy over half of the invested principal has been recovered for the investors. You can learn more about Eurocent on Mintos blog.
The case with Eurocent very well portrays the importance of investing in loans from more than just a provider. It also shows very well that even though there are buyback guarantees on the loans, the guarantee is only as good as the company behind.
But let’s say that you diversify equally between 40 loan originators. Then the maximum loss of one loan originator going bust is 2,5% of your overall portfolio. But in the case of Eurocent, over half of the invested principal was recovered. This means that if you had Eurocent loans amongst the 40 loan originators, your overall portfolio loss would have been around 1,25%.
What happens if Mintos goes out of business?
Since Mintos has been profitable since 2017, it is fairly unlikely they go out of business anytime soon. Of course, there is always a small risk of it if something unexpected and unforeseen happens.
So as a part of assessing how safe Mintos is, we have taken a look at what happens in the worst-case scenario of Mintos folding:
If Mintos goes out of business, investors on the platform will get full insight into which transactions have been made on the P2P lending marketplace. As a measure, transaction data is sent to the law firm FORT every month. Upon an unlikely bankruptcy from Mintos, this data will then be used to ensure that the loans are being managed properly by a liquidator or administrator.
What you can do to invest safely
Although Mintos has made many efforts to secure their investors, it is also important that you do something yourself. The following points are quite essential to avoid a single point of failure and to protect yourself as an investor:
- Invest in loans with buyback guarantee
- Diversify between loan originators
- Diversify between loan types
- Diversify between loans
In essence, it’s a great idea to invest in some of the many loans with a buyback guarantee. This means that if the borrower can’t repay the loan, the loan originator has to step in and buy back the loan themselves. Furthermore, you can secure yourself making fractional investments in several loans from different geographical locations, currencies, loan types, from many different loan originators.
It might sound like a big mouthful to do all that, but the Mintos auto invest function makes this really easy.
So, depending on how you use the platform, it’s relatively safe.
Bonus tip: We tried to switch from one currency to another on the platform. It costed a semi-expensive exchange fee. It can, therefore, be a good idea to transfer money to the investment platform in the currency that you intend to invest with.
Set up a Mintos auto invest strategy
One of the better things about Mintos is definitely its autoinvestment feature. Using that feature, you can create a Mintos auto invest strategy, which allows you to invest in loans without spending much time on actually handling your P2P investments on a daily basis.
Our advice: Set up a Mintos auto invest strategy to select loans instead of cherry-picking loans on either the primary or secondary market. Your time is probably better spent elsewhere instead of chasing chicken feed.
You can either use one of the predefined Mintos investment strategies or make a custom one for yourself. The default Mintos investment strategies include a short-term strategy, a diversified strategy, and a secured loan strategy. You can find more information about the strategies on their website.
Predefined Mintos investment strategies:
The easiest choice is clearly to go with one of the predefined strategies. We actually recommend that you start by selecting one of the strategies you think fits your investment criteria the best.
After selecting the strategy, you can decide which currency it should invest in, whether it should reinvest and how much it should invest. Furthermore, you can make adjustments to the strategy by clicking “View Auto Invest strategy criteria” to make it fit perfectly to your wants and needs. But since you initially choose the auto investment strategy that fits you the best, you probably don’t have to make a lot of changes.
How we decided to invest
You might wonder how we choose to invest, and what our return using the platform is. Therefore we are going to give you insight in regards to our investment at Mintos.
Firstly we decided to set up a custom Mintos auto invest strategy. But instead of building the investment strategy from scratch, we actually went with the predefined diversification strategy made by Mintos. We did, however, make some tweaks to the strategy. For example, we excluded all loans without a buyback guarantee, as well as raising the minimum interest rate a bit.
Our investment efforts for making this Mintos investing review resulted in the following numbers:
As you can see from our account statement, we managed to get a weighted average interest rate of 12.23%, with a weighted average remaining term of 15 months and 29 days.
We believe that the interest rate you get from Mintos definitely is worth. Especially in relation to the risk you take. Therefore, we also keep our auto invest strategy running for now.
For different reasons, investors could want to diversify more than one platform. For example, this could be a very good idea for larger investors, as it is probably the best way to protect your money in case things go south on one of them. Some of the most similar and best Mintos alternatives are:
You could also consider real estate crowdfunding instead of investing in P2P lending. This can be done with a platform like Crowdestate.
Conclusion of our Mintos review
We believe that the Mintos platform is reasonably secure. However, you must be aware of having to activate two-factor authentication yourself. In addition, the security on the platform also depends on how you invest your money on it. But as long as you have your diversification in order and also only investing in buyback guarantee loans, you will probably have a good and lucrative investment experience with Mintos.
To conclude our Mintos Peer-to-Peer review, we want to address the fact that Mintos at the moment is the absolute best platform we have ever tested. So whether you are a complete beginner to P2P investing or a P2P lending expert, Mintos offers one of the very best P2P lending marketplaces in the world.
Do you feel ready to invest through the platform after reading our Mintos P2P review? Then click on the button below to get to their website: