We believe "transparency" is not just a nice word which could attract people to invest on the platform; transparency is a combination of actions that must be at the forefront of any investment platform's business strategy.
Let's be specific, the most important rule is if you want to invest your money safely, do your research about the company, and always know how they protect your invested funds. Accordingly, we would like to provide relevant information, allowing investors to conduct assessments before making investment decisions.
Responsible lending
"Hive Finance" and its loan originators greatly emphasise responsible lending. It means our loan originators act in a customer's best interests, ensuring affordability, transparency of terms and conditions, and supporting borrowers if they experience repayment difficulties. There are no hidden fees or penalties, and all terms and conditions are clearly explained upfront. Loan originators communicate openly and transparently with their customers, and so does "Hive5 ". Additionally, our Loan Originators are selective in approvals to loan applications. They use hi-end self-learning risk decision engines with the broadest range of information available to access applications and underwrite loans to a high standard.
Performance communication
"Rome wasn't built in a day", likewise, building investors' trust is consistent and long work. It takes time. We know how poor communication could hurt performance and trust. Accordingly, our Loan originators provide regular reports about their business performance, including the main risk factors that could influence their daily operations. "Hive5" provides regular publications, monthly performance statistics, audit reports, business plans, interviews with Loan Originators, the management board and Q&As with investors. Thufermore, if you need any information, we are always happy to help you via phone, email or any social media channel we use. Just let us know.
Corporate governance
A Supervisory Board and Audit Committee supervise the company's activities and processes. It consists of independent experts in fintech, finance, legal and IT. In addition, the management board can be proud of strong and experienced managing executives responsible for risk management. Our executive management has a solid track record and experience in multi-geographic lending.
Protection of your funds
Firstly, loan originators follow the strategy to minimise the default risk to protect your investments. Hence, Loan Originators work closely with their customers to resolve any issues if their situation changes and they experience any difficulties. In simple terms, it is always worth having a solid understanding of and a good relationship with your customers. Also, we will offer our investors a multi-diversified investment strategy with the possibility to customise it based on loan grading, geography, duration and other factors.
Secondly, we protect invested funds by giving a Two-layered buy-back guarantee in case the payments are delayed for more than 60 days. It means: that first, the Loan Originator and then "Hive finance" will be obliged to redeem the investment with all accrued interest following the Assignment Agreement. It reduces the need for investors to worry about bad debt.
Moreover, all investors' uninvested funds are securely held in a separate bank account. So, the money can be withdrawn at any time in case of any unpredicted events related to the platform.
Globally, the regulation of P2P lending has evolved significantly in recent years, with mostly beneficial effects on the diversification and security of your investments. Regulatory responses have varied greatly between countries. Meanwhile, the latest European Crowdfunding Service Providers Regulation harmonises the requirements for the operation of crowdfunding services across the European Union, opening up the possibility of providing crowdfunding services in other EU countries. For that reason, "Hive5" is registered in Croatia and follows the compliance of European Crowdfunding Service Providers Regulation.
Final note
Finally, as the alternative finance market rapidly matures, it will likely hit a few speed bumps. Therefore, we believe it is essential to be as transparent as possible to ensure that P2P lending is worthy of becoming a mainstream finance product.
We promise to focus on originating quality investments and also invest in technology and operations to better serve and secure our investors.
