Logo of NEO Finance Analysis

NEO Finance Analysis

Personal Debt
Peer-to-Peer Lending

Last updated in March 2023.

What is NEO Finance?

NEO Finance, founded in 2014, is a profitable P2P lending company that has issued over €135 million in personal loans in Lithuania, with a loan portfolio of over EUR 50 million. It has also invested over EUR 3 million in its own software for managing its P2P lending business. In 2017, NEO Finance got an electronic money institution license allowing it to provide services throughout the European Union. According to its statistics page, NEO Finance has issued over 35,000 loans and has more than 14,000 investors on the platform. 

Head over to NEO Finance statistics to see the funding volume performance.

Key Takeaways

  • NEO Finance shareholders include ERA Capital UAB, Grigory Gurevich, Value Capital UAB, and Asian Pacific Green Energy PTE. LTD, and minority shareholders.
  • NEO Finance AB operates under three different brands: Paskolų Klubas, Neopay, and FinoMark.
  • The advertised average nominal interest rate for Lithuanian consumer loans on NEO Finance is 14.47%.

How NEO Finance Works

NEO Finance is the largest personal loan investment platform in Lithuania. Paskolų Klubas, operated by NEO Finance AB, is the consumer loan company of NEO Finance. Neopay is a licensed provider of payment initiation and account information services, and FinoMark received permission from the Bank of Lithuania to carry out crowdfunding activities in February 2021.

NEO Finance offers two investment methods: 

  • Manual selection of loans from a list of borrower applications that includes information on the borrower's income, creditworthiness, and previous debts. 
  • Automatic investment through the creation of an investment offer with specified parameters such as maximum investment amount, loan maturity, and creditworthiness of borrowers.

NEO Finance’s secondary market also includes the possibility for investors to buy and sell investments in consumer credits. In 2021 the platform started a service to buy back new A+ rated loans if the agreement is terminated with the borrower.

NEO Finance Returns & Fees

NEO Finance offers high advertised nominal interest rates for investors between 8-16% (before delays and defaults). The average advertised nominal interest rate for Lithuanian consumer loans at NEO Finance is more than 14%.

NEO Finance charges a range of different small fees depending on the use, for investors there is for example a €0.29 fee for transfers, €0,79 / month additional account maintenance fee, and a fee for buying back A+ rated loans. The borrowers are charged fees depending on the use as well. See the full list of fees at NEO Finance fee list

NEO Finance Management

Evaldas Remeikis is the founder & Chairman of the board at NEO Finance. As of July 2022, he also assumed the role of Head of Administration. NEO Finance AB operates under three different brands: Paskolų Klubas, Neopay, and FinoMark. As of Q3 2022, NEO Finance AB owned 94.13% of the shares of FinoMark UAB.

Paskolž Klubas provides P2P lending services in Lithuania, while the NEO Finance brand provides services to EU, Free Trade Association, and European Economic Area citizens. NEO Finance acquired the FinoMark crowdfunding platform in 2020.

FinoMark, a subsidiary of NEO Finance, has seen its loan volume grow by a factor of 4.45 due to a small comparative base and a stronger focus on sales. In Q3 2022, NEO Finance’s EBITDA and pre-tax profitability both increased by 17% and 38%, respectively, compared to the same quarter of the previous year. Loans granted in Q1-Q3 2022 totaled EUR 26.5M, or 29% more than the EUR 20.5M financed in Q1-Q3 of 2021. Profit before taxes for Q1-Q3 2022 was EUR 82 657. In Q1-Q3 2021, pre-tax profit was EUR 258 130.

NEO Finance shareholders include: ERA Capital UAB owns 73.49%, minority shareholders 10.55%, Grigory Gurevich 9.90%, Value Capital UAB 3.69%, and Asian Pacific Green Energy PTE. LTD owns 2.37%.

Special Considerations

NEO Finance operates the payment initiation service (PIS) Neopay. At the end of Q3 2022, Neopay was available in Lithuania, Latvia, Estonia, Finland, Sweden, Norway, Denmark, the Netherlands, Poland, Greece, Romania, Spain, Croatia, Bulgaria, and Slovakia, integrated into over 200 financial institutions.

NEO Finance is licensed as an Electronic Money institution among other licenses by the Bank of Lithuania.