Every day, hundreds of thousands of people invest money through different P2P platforms in return for interest. Before establishing hive5, we aimed to stand out from this huge P2P crowd. Our team decided that excellent risk management would be key to earning investors' trust. Although it is a constant and never-ending task, we are already proud of the results.
Responsible lending
Firstly, "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; all terms and conditions are clearly explained upfront.
Debt recovery processes
In addition, "Ekspres Pozyczka" starts the debt recovery process 10 days before the loan's due date. Firstly, the borrower is offered to refinance for the current loan with a payment of interest and commissions accrued throughout use.
The following stage is the soft-collection phase, during which the company employs various communication channels to reach its clients. On the 60th day past due, the loan agreement is transferred to the professional debt recovery agencies. Finally, the debts remaining 90th days past due are sold and written off from the Loan Originators' balance.
Risk mitigation
"Ekspres Pozyczka" is a second-to-none P2P organisation which shall shortly introduce COSO methodology-based enterprise management process within group entities. The company is among the few in the market recently implementing a revolutionary AI-based, multisource Big Data decision engine. The algorithmic engine processes massive databases of different sources in Poland. As a result, clients are grouped into a 15-point risk system, with clients approving only the allowed amount of credits from each point to manage the acceptable level of risk in the overall portfolio. It also helps to filter fraud.
Ruptela: double shield security
Besides, another loan originator, "Ruptela", provides ideal risk management by providing double shield security. It is one of the most attractive advantages for our investors. That means: besides buyback, the loans are secured with collateral – GPS Fleet tracking devices, which are pledged with a higher value than the loan amount. Another huge advantage is that by giving a loan to use GPS devices, "Ruptela" can immediately terminate the fleet management services if there is at least a day's delay in paying for the loan. It is a perfect debt-collection tool.
Finally, we are happy to say that not even one loan is late right now. And investors value that. They can accurately predict returns and plan further investment steps.
