Grupeer is proud to announce that we have partnered with Dyninno Fintech – an international group of companies that offers a wide range of cutting-edge financial services. Grupeer’s investors now have an opportunity to invest in loans of Holding’s lending arm – EcoFinance, issued in Moldova, Romania and other markets.
The competitive advantage
Dyninno Fintech was established in 2015 with the purpose to serve the underbanked consumers in Europe and other regions. To do so, the founders have built the group of companies which would complement and increase the efficiency of each other. The non-banking financial institutions, call centers, and strong in-house IT service providers are a part of one group, which gives Dyninno Fintech a competitive advantage over its competitors.
The cornerstone of lending operations is the call centers. These call centers recruit the most professional talent, which ensures high-level customer service and operational processes. The mission of these call centers is to use the latest technology and know-how to convert the valuable leads into loyal customers. The leads, on the other hand, are generated due to the modern technological solutions and finally are evaluated by the in-house scoring model.
Another part of Dyninno Fintech success lies in the highly qualified team of professionals, who have vast experience in the banking and financial industry.
EcoFinance, the lending arm of Dyninno Fintech, scales its operations across locations with the most demand for non-banking financial services.
In line with this strategy, EcoFinance Romania was founded in 2017 and EcoFinance Moldova was founded in 2018. The business model is easy to scale, as the process to get the loan is similar in every country.
Lending business in Romania
The process to get the loan is very straight-forward. The first step is to fill out the application with personal data on the lender’s webpage or through the call-center. Then the system analyses the client’s personal data from several perspectives: internal scoring, external credit history, internal credit history, and other relevant aspects that create a client profile.
The analysis of this information is almost instant (10-30 sec.), so the response is provided straight away. Then the client is informed, whether he/she passed the scoring mechanism. If the decision is positive, the client is informed about the possible loan amount and the limits. At this stage, the client is considered pre-approved. In order to finalize the process, the client goes through the KYC, fraud and AML analyses. Only after all these checks are passed, the client has a final confirmation.
The rejection rate is approximately 65% for new clients and 35% for returning clients. The lending business of EcoFinance Romania has a great demand due to several strong competitive advantages. First of all, the final decision is made very quickly- the whole process takes less than 10 minutes and the client gets the money in their bank account within one hour. Besides, to serve the population with no access to internet, EcoFinance benefits from its top-level call centers, which are operating during the working days 7 days a week. This allows processing applications even on weekends and holidays.
Such customer service allows serving not only the fully digital population but also those who are yet to discover an online lifestyle. The typical customers are middle-aged people with active consumption and with some credit history. The client satisfaction is growing and this is mirrored in returning rates: on average, 60% of all sales are made due to the returning customers.
The products offered by EcoFinance are designed to fit every customer’s needs. Across the markets of presence, EcoFinance offers classic single payment and installment loans, as well as credit lines. The main product in Romania is a credit line. This product is offered by a few players on the market, so this is what differentiates EcoFinance from the competitors. The credit line is usually opened for 24 months and the client can withdraw and repay as they wish within an approved limit. Moreover, the client can ask for a limit increase during the credit line’s lifeline.
In Romania, the average EcoFinance loan is usually Eur 200 and is used to cover the unexpected expenses or fill in the salary gaps. The interest rates for all products are in line with competitors’ levels and are positioned in the lower end price spectrum. In Romania, for example, the interest rate is 1.19% per day for new clients (ranked in line with competitors); and 0.99% for returning clients (positioned lower than the average market).
The mission of EcoFinace is to offer clients a seamless digital service. The mission of Grupeer is to offer premium investment yield with low risk. Our future cooperation with Dyninno Fintech will let both companies achieve mutual benefits. Given the low-risk rating (Grupeer Rating: B) we think that our investors will benefit from the addition of this new loan originator to their portfolio. Happy investing!