Interview with Nectaro CEO Sigita Kotlere

April 30th, 2024
6 minutes read

Nectaro is a newly launched Latvian digital lending platform that offer investments in loans issued by EcoFinance and CreditPrime. In this interview, you will learn from the CEO Sigita Kotlere what it means to invest with Nectaro.

How was your journey to becoming the CEO of Nectaro and who are the founders?Picture of Sigita Kotlere as CEO of Nectaro

My journey to becoming the CEO of Nectaro has been both enlightening and challenging in all the good ways. I started from entry-level positions in banks and gradually ascended to pivotal roles in the fintech sector. My pivotal shift came in 2019 when I joined Europe's largest P2P platform, where I spent three  years witnessing and contributing to the sector's significant growth.

The opportunity to join the Dyninno Group of companies marked a decisive turn in my career. Dyninno, established in 2004 in San Francisco by Alex Weinstein, is a conglomerate operating across the travel, finance, entertainment, and technology sectors in over 50 countries. By 2015, under the vision of Dmitry Tsymber, Dyninno expanded into the fintech realm, establishing a payment institution, a lending business, and as logical development - investment platform Nectaro.

Invited to spearhead the creation of Nectaro, I saw a unique chance to reshape the investment landscape, leveraging my accumulated knowledge and experiences. This new-generation investment platform is the culmination of years of dedication to making financial services more accessible and convenient. Officially launched on November 22 last year, Nectaro represents the latest evolution in Dyninno's commitment to innovation and excellence, with a promise of more thrilling developments to come.

What is unique about Nectaro in the digital lending industry?

It's important to highlight that Nectaro stands out as the first platform in the digital lending industry to offer investment opportunities in credit lines. Unlike the typical payday loan, our product offers borrowers a line of credit, which essentially provides a longer financial term. Interestingly, investors often receive part of their initial investment within the first three months. Beyond the uniqueness of our product, the positioning of our platform deserves special mention. We place a strong emphasis on understanding and addressing the needs of our target audience, particularly through educational content. Our goal extends beyond merely attracting investments to Nectaro; we aim to educate investors about the intricacies of investing and the importance of diversification not just across platforms, but also among different types of assets.

How much can investors expect to earn on Nectaro after delays and defaults?

I would particularly like to emphasize that we do not experience defaults, as all of our financial instruments are backed by a Buyback Guarantee. This means that if there is a delay of 60 days, on the 61st day, investors will receive both the principal and the interest earned during this period. As I've mentioned, due to the specifics of our lending product, it's important to reinvest the paybacks before the remaining term of the financial instrument expires. We are currently working on an automatic reinvestment tool to facilitate a truly passive income experience. Therefore, investors can indeed expect to earn the published annual percentage yield (APY) which ranges from 12% to 14% per annum.

How does Nectaro manage risk and ensure the security of investor’s money?

As a regulated platform, we pay meticulous attention to risk management and undergo regular audits by our regulator to ensure compliance. At Nectaro, we adhere strictly to the Investor Protection Law. We are an authorized investment firm and a member of the national investor compensation scheme under Directive 97/9/EC, which is designed to protect investors by providing compensation in case Nectaro fails to return financial instruments or funds. Should the underlying loans underperform, the lending company offers a buyback obligation. To manage risks associated with lending companies, we conduct thorough onboarding and due diligence processes. This ensures that all partners meet certain minimum criteria and understand the legal risks involved. In case of any issues, we have established security mechanisms for debt collection. We believe that creating a safe, transparent, and regulated investing environment is crucial, as education and knowledge lose their effectiveness without it.

How is Nectaro regulated and what does that mean for the investor?

Nectaro has obtained an investment brokerage firm license and is supervised by Latvijas Banka. To secure an IBF license, a company must satisfy specific legal requirements and undergo a rigorous application process. The license mandates adherence to a series of rules and regulations, ensuring Nectaro operates in a compliant manner and has long-term plans for business development. Indeed, this approach results in a more comprehensive onboarding process for investors. However, spending a bit more time to secure a safer investment path is worth it.

This framework provides additional layers of protection and transparency for investors:

  • We maintain accurate records and accounts to clearly distinguish all Notes and investor funds from Nectaro's assets.
  • Investors benefit from a compensation scheme established under Directive 97/9/EC, that means  investors can claim under this scheme 90% of their loss, up to a maximum of €20,000. This compensation scheme covers the amount that is uninvested and remains in investors' accounts.
  • Nectaro provides thorough and detailed information, empowering investors to make well-considered decisions regarding their investments.
  • Nectaro meticulously conducts due diligence on all third-party partners, including lending companies.

How does Nectaro manage the impact of economic fluctuations?

Nectaro adeptly manages the impact of economic fluctuations through a multi-faceted approach, leveraging the extensive experience and resources of being part of the large and international Dyninno group. This affiliation allows us to collectively evaluate potential risks and address them effectively, drawing on years of experience across various sectors.

Regular risk assessment is a cornerstone of our strategy, ensuring that we stay ahead of potential economic and other risks by constantly updating our analysis. This ongoing process includes not just economic analysis but also the exploration of various factors that could impact our operations and our investors' interests.

Moreover, we actively collaborate with regulators and associations, participating in regular meetings to shape the market and adapt to circumstances proactively, rather than reactively addressing risks as they arise. This collaboration helps in setting standards and practices that enhance market stability and confidence.

At the heart of our approach is a commitment to transparency, rigorous risk assessment, and a professional team dedicated to safeguarding our platform and its participants from the adverse effects of economic fluctuations. Our proactive measures and collaborative efforts ensure that Nectaro remains a resilient and reliable platform for our investors, even in the face of economic uncertainties.

Where do you envision Nectaro in the next five years?

In the next five years, we envision Nectaro evolving into a leading force within the investment platform landscape, recognized for its innovative approach, robust growth, and unwavering commitment to both investor returns and borrower service. Here's a detailed perspective on our future direction:

  • Expansion of investment offerings: We aim to diversify our portfolio of investment opportunities, exploring new sectors and geographies to provide our investors with a broader range of options. This expansion will be guided by rigorous analysis and due diligence to maintain the high quality and reliability of investments.
  • Technological advancements: Nectaro plans to leverage cutting-edge technology to enhance the investment experience, improve risk assessment models, and introduce automated features for easier portfolio management.
  • Educational initiatives: Recognizing the importance of informed investing, Nectaro will expand its educational resources, providing investors with comprehensive learning tools and resources to make better investment decisions.
  • Regulatory leadership: We will continue to work closely with regulators to not only comply with existing frameworks but also to shape future regulations in the fintech and investment domain. Our aim is to set industry standards for transparency, security, and ethical conduct.
  • Community and network building: Finally, we plan to foster a vibrant community of investors, borrowers, and fintech enthusiasts, facilitating networking, knowledge exchange, and collaboration. 

By achieving these objectives, Nectaro envisions not just growth in scale but also in influence, driving positive change in the digital investment space and fostering a secure, transparent, and dynamic environment for all stakeholders.