AltFi Data announced on March 31st 2017, that the historical origination data of Lendix, the leading European SME lending platform, had been added to the AltFi Data Analytics platform. All the information relating to loans originated by Lendix to be represented into AltFi Data’s established standards. Investors can now review a track record of net return, together with all supporting metrics, and perform like-for-like analysis against other marketplace lending platforms displayed on AltFi Data Analytics – including Zopa, Funding Circle, Ratesetter and MarketInvoice in the UK, and Prosper Marketplace in the USA. This is the first time standardised comparison is available outside of the UK and USA.
The availability of standardized data facilitates due diligence and is expected to drive adoption of this asset class. Furthermore, Lendix recognizes the alignment with investors that can be created by facilitating verified disclosure to a common standard.
“At Lendix, we know that effective disclosure underlines our commitment to originate high quality loans. We want to be held accountable for the quality of our origination. This kind of disclosure can facilitate the due diligence process. But equally importantly it reminds lenders on our platform that their economic destiny is intertwined with our own. This combination will further increase the attraction of the assets we originate in all our countries of operation to investors”, commented Olivier Goy, Founder & CEO of Lendix.
“Lendix, and the existing originators represented in AltFi Data Analytics, should be commended for pushing the boundaries of transparency by facilitating verified disclosure to a common standard. Investors, including large institutions, increasingly recognize that this sector is originating high yielding assets with low expected correlation to other asset classes. But investors rely on effective disclosure to allow them to perform thorough due diligence. This tool can facilitate that process and encourage investors to increase deployments or establish new relationships”, explained Rupert Taylor, Founder & CEO of Altfi Data.
Lendix Net Return according to the AltFi Data Marketplace Lending Returns Index methodology
The 12-month trailing net return that investors have achieved from investing via Lendix can now be reviewed to the same standard as the major UK platforms.
In addition to analysis of net return, AltFi Data also provides further analytics covering:
- gross origination, net lending, change in outstanding principal
- lending rates
- bad debt rates, recovery rates and net loss rates
- arrears
- term
- loss coverage ratios
All analysis can be segmented by risk grade, borrower type, security type etc.
About the AltFi Data Marketplace Lending Returns Index:
The AltFi Data Marketplace Lending Returns Index measures the returns generated from marketplace lending. Index values are time-weighted and published as aggregate annualized returns. As such, it expresses what an equal time-weighted exposure to every loan would have returned over the preceding 12-month period. The Index is updated monthly. Index calculations are based on aggregated data from the 4 largest UK platforms by origination volume. Together, these four platforms represent over 70% of the market in the UK and over 60% across Europe:
To ensure accuracy and transparency, the Index is constructed using the cash flows from every loan made through the eligible platforms. The Index is updated at the end of each month to reflect daily changes in loan cash flows. Platforms are eligible for inclusion if they satisfy specific eligibility criteria relating to:
- origination volume
- standards of disclosure
- maturityFurther details can be found in the index methodology.
