How Lendermarket is Powering High-Yield Investments in Lending Companies

In this interview, we talk with Carles Federico, CEO of Lendermarket, about the platform’s approach to high-yield loan investments and its role in the wider lending industry. We explore how Lendermarket fits into the competitive landscape, what sets it apart, and the challenges it faces as it navigates a crowded market of investment platforms.

Can you briefly describe Lendermarket?

Lendermarket is a peer-to-peer (P2P) investment platform that links both individual and institutional investors with consumer loans provided by innovative digital finance companies throughout Europe and Latin America. Our mission is to make investing accessible and rewarding for everyone—no matter their location or initial investment amount.

At Lendermarket, we envision a user-friendly, borderless marketplace enabling investors to directly support loans within the rapidly growing digital banking landscape. Our platform guarantees fair returns and a secure investment environment, all while eliminating unnecessary fees. We prioritize ensuring that your investments are actively generating profits while minimizing risk.

In summary, Lendermarket presents a contemporary approach to investing in consumer loans on a global scale, crafted with the investor's best interests at heart.

What inspired you to join this company?

I decided to join Lendermarket because I’m deeply inspired by the company’s innovative approach to peer-to-peer investing and its commitment to financial inclusion. Lendermarket’s mission to make investing accessible to everyone, regardless of their background, aligns closely with my own values. The platform’s potential to transform the financial landscape and contribute positively to the communities we serve is truly exciting. I was drawn to the opportunity to be part of a dynamic team dedicated to transparency and fair returns, and I’m eager to leverage my experience to help drive Lendermarket’s vision forward.

How do you find potential investments?

We focus on building strong partnerships with loan originators across various sectors, including consumer and business loans. This involves thorough due diligence, such as financial audits and risk assessments, to ensure the quality and stability of potential partners. We look to identify emerging trends and growth opportunities in regions like Eastern Europe and Latin America. We utilize industry financial conferences and fintech collaborations to connect with innovative loan originators. Expanding the loan originator network geographically and diversifying loan types further helps mitigate risk and provide a broader benefit to our  investor base.

Who is on your team and how do you complement each other?

The Lendermarket team is a blend of strategic, growth-focused, technical, and financial expertise. I have a great deal of professionals leading the company with me, including Gerad Kostak (Head of Growth) driving expansion and market presence, fostering relationships and increasing our platform’s users. Helari Laurent (CTO) ensures the platform's technology is robust and innovative, supporting seamless user experiences. Aldar Tsybikov (Head of Finance) secures the financial health of the company, balancing growth with sustainability. Together, with their respective teams, they form a well-rounded, complementary team that ensures the company stays aligned with its long-term goals.

How are you regulated and what does that mean to your investors?

Lendermarket is based in Ireland and therefore complies with Irish laws, i.e. AML (Anti-Money Laundering), KYC (Know Your Customer), and GDPR (General Data Protection Regulation) for data protection, etc. While Lendermarket itself is not a direct lender, its loan originators are regulated in their respective countries. There is a buyback guarantee included on loans and this allows for a degree of  reassurance to investors. The buyback guarantee is provided by the loan originators. Lendermarket is steadfast and committed to transparency and adherence to best practices.

What are the types of investments available on Lendermarket?

With Lendermarket, investors have the opportunity to choose from a diverse selection of loan originators across Europe and Latin America, offering consumer loans. By investing through the platform, you can earn annual returns of up to 18%, while enjoying the security of a 100% Buyback Guarantee on all loans, providing peace of mind and minimizing risk.

What are the potential earnings for an investor on Lendermarket?

The average annual return for a Lendermarket investor is 15.75%, with maximum returns of 18%. If an investor reinvests the earnings, they can take advantage of compound interest, increasing potential earnings over time. For example, reinvesting returns monthly or quarterly can boost overall returns significantly over time. Lendermarket does not charge any fees to investors. This means that the interest earned on loans is not diminished by platform fees.

What are the key milestones or goals you aim to achieve this year?

Over the next years, we are committed to transforming our business by diversifying our product offerings, enhancing technological capabilities, and expanding into new markets. Our strategic plan includes the introduction of a comprehensive range of loan and investment products tailored to meet the diverse needs of an expanded customer base. We are focused on growth in key European markets and exploring opportunities in additional regions. Concurrently, we will intensify our marketing initiatives and establish new strategic partnerships to attract a larger investor base and collaborate with high-quality loan originators.