Finbee Analysis

Finbee is a Lithuanian peer-to-peer lending platform with a crowdfunding investment license from the National Bank of Lithuania. The platform launched in August 2015 and offers investors access to consumer and business loans in Lithuania.

Both individuals and legal entities can invest on Finbee. The eligibility criterion to become an investor on the platform is to have a bank account in one of the EEA countries. Investors are also requested to fill out a KYC, prepared according to Anti-money laundering law requirements in Lithuania.^[1] Since its launch, Finbee has raised more than €157.74 million, with an average monthly volume of €4.37 million in the past 12 months.^[2] The platform boasts a community of over 22,751 investors.^[3]

• Investments start at €10, including unsecured consumer loans and potentially collateral-backed business loans.
• Investments on the platform range from  €415 to €50,000, with 12 to 84 months loan durations
• Finbee reports an effective annual interest rate of 16.3% for consumer loans and 12.4% for business loans.

Finbee is a peer-to-peer lending platform that offers investments in consumer and business loans. Most investments are not unsecured, except for some secured business loans with collateral. Finbee organizes its offering into two categories:

• Peer-to-peer loans, which are personal loans
• Crowdfunding projects, which are business loans

Loans are structured as amortized loans, in which interest and part of the principal are returned monthly to investors. Investments start at €10 and Finbee offers a secondary market as well as an auto-invest feature.

Investments on the platform range from €415 to €50,000, with loan durations spanning from 12 to 84 months.^[4] Finbee withholds a 15% tax on interest for non-residents per Lithuanian law, with automatic deductions. Residents of countries with a Double Taxation Avoidance Treaty with Lithuania may qualify for a reduced tax rate and can apply via email to the platform.^[5]

Finbee has reported an effective annual interest rate of 16.3% for consumer loans and 12.4% for business loans.^[6] The platform has returned a total of €10.63 million to its investors. According to Finbee, approximately 22% of the loans in its portfolio are categorized as late. Of these, 8% are overdue by 1 to 30 days, 5% by more than 31 to 90 days, 2% by 91 to 180 days, and 7% are late by more than 180 days. Finbee also reports a 3% default rate.^[7]

Finbee charges a €1 per month investor’s account fee, but no additional fees are applied, not even for trading on the secondary market. However, the platform has not explicitly disclosed any information regarding fees applied to fundraisers. It is assumed that Finbee generates revenue from fees and interest rate spread.^[8]

Finbee was founded in 2015 by Laimonas Noreika, a fintech entrepreneur and expert in alternative finance in the Central and Eastern Europe region. He served as the CEO and co-founder of Finbee until he successfully exited the company in 2020. Laimonas is also the founder of the HeavyFinance platform, which connects investors with European farmers, and he serves as its current CEO. Darius Noreika took over as the CEO of Finbee in October 2019. Before becoming CEO, he was the Chief Operating Officer at Finbee since May 2015. He is a CFA charter holder with notable experience in the financial sector, having held positions at Danske Bank and Swedbank. Supporting the team, Giedrė Leminskienė is the Chief Marketing Officer, bringing more than a decade of experience in marketing. Also among the team are Viktorija Ciunienė, the Head of Legal and Compliance, and Vaidas Kabelis, the Head of Sales.

The company behind the platform is UAB “Finansų bitė” which was founded in 2015 with its headquarters in Vilnius, Lithuania. According to the CEO Darius Noreika in a recent interview with P2PMarketData, the platform has growth 98% YoY since 2015 in the amount of retail investors using the platform.

Finbee has reported a decrease in revenue and earnings in FY21, with revenue down to €3 million and net profit down to €374,000 after peaking in FY20, with revenue reaching €3.49 million, and a net profit of about €851,000. The platform continues to maintain a positive margin in FY21, despite the downtick in earnings, at 12.4%, better than FY19’s 10.5%, although lower than FY20’s net margin of 24.4%. In 2022, Finbee issued 39% more consumer loans and 90% more business loans compared to 2021. Since 2022, Finbee has not disclosed its Financial report.^[9]

In 2023, Finbee was recognized as one of the top 200 fintech companies globally by CNBC and Statista, making it the only Lithuanian company on the list. This recognition places Finbee among industry leaders highlighting its innovative financial solutions for individuals and businesses. The ranking was based on an extensive analysis of over 1,500 companies across nine fintech categories.^[10]