What is most important when taking the payday loan online? The speed, of course! Our new Loan Originator Monetria is operating in the personal loan business in Russia and is challenging how quickly the loans can be accessed!
How fast can we get?
Russian payday loan market is over-saturated and the competition is tough. Only the fastest players can count on the client-flow and take leadership positions. The majority of the brand names of payday loan providers are highlighting how quick, they are Bystro Dengi (Quickly Money), MigCredit (Jiffy Credit), Srochno Dengi (Urgent Money).
Monetria offers one of the fastest loans even when comparing to top players in Russia. This is even more important for such a large country, this service is available in any place in Russia where there is an internet connection.
The idea to found the 100% online payday loan provider came to one of the executive managers, with extensive experience in international fintech business. Previously, the team has worked in an offline sector and it was only a matter of available resources to switch to the online business because the Russian population is becoming more and more tech-savvy. The internet and mobile phone penetration are high even in smaller towns.
Besides that, the Russian payday loan market has become strictly regulated last year. That’s why lots of small companies with poor IT expertise and not quite experienced teams left (and still leaving) the market, despite the ambitions. This was an opportunity not to be missed. So, founders have contributed own funds and have started to work on the new online venture.
The core team worked a lot in offline consumer finance business and banking before, so everyone from the executive team has vast experience in financial markets. The team members worked for well-known international banks (Credit Europe Bank, Intesa Sanpaolo), BIG 4 (KPMG, Deloitte) and fintech (Finstar, TWINO) companies.
The company and IT infrastructure development were launched in 2018. The essential components of the online loan provider are the scoring model, which allows making a decision quickly and with a reasonable ratio of portfolio return and default risk and the cloud proprietary CRM system. When everything was put in place, pure online sales started in mid-2019. Currently, 40 members of staff work in Monetria. There are a few competitors which operate the same 100% online model, but they are relatively small. Monetria, currently is taking middle positions in terms of size and is going to grow rather aggressively.
To become a client, the loan seeking induvial has to fill the questionnaire online on the website.
A potential customer can see all the terms and conditions of the requested loan including overpayment amount, fees, and return date before the application form submitted.
To fill in the application form we ask for just some basic questions which allow us to identify and evaluate the customer using lots of variables via our extended self-educated AI-based scoring system and data of external partners (including web government services, social media, and the device data).
After the information is collected it goes to the CRM and scoring system where the approval decision is made automatically. After the loan approved, Monetria disburses money instantly to the client’s bank card or bank account.
Monetria just recently has met the break-even point, and they continue to grow fast enough with the current loan portfolio about Eur 2M. Given the recent regulation in the Russian Federation, Monetria can’t charge the customers the interest rate above the ceiling – 365% a. (1% per day).
Clients & Product
The target audience is financially underserved people who live in small cities remote from the capitals, with difficult access to bank services. That is why the slogan of Monetria is ‘We help to deal with your financial needs in any place all around Russia’, that is also one of their competitive advantages as most loan companies aim at clients in big cities. The new application rejection rate is over 87%, which is high, but it allows keeping the defaults low. The average default rate is below 16.5%.
To manage defaulted payments, Monetria is using predictive pre-collection and soft-collection strategies via different channels (phone, SMS, email, messengers). The hard-collection function is outsourced to local collection agencies.
Currently, the typical customer is a family man/woman, slightly above 30 with average income Eur 400 (outside Moscow and Saint Petersburg), has secondary education, lives in the city, works as a blue-collar, and with Samsung smartphone. There are about 12 500 loyal clients by now. The average retention rate is 65% by now and the loan extension rate over 50%.
At the moment the company offers short-term loans (from 7 to 35 days) from 2K RUB (Eur28) to 30K RUB (Eur430). However, Monetria plans to add installment loans, business loans, collateral loans, e-point-of-sale (ePOS) loans.
The average loan is quite high for the Russian market- 17.5K RUB (Eur 250). The most frequent loan purpose is everyday shopping needs (food and cheap consumer goods) or urgent needs (unexpected bills, pharmacy, etc.).
Mission & Near Future
The mission of CashComet is to provide easy access to a full range of financial services for the maximum number of financially underserved people, align with the growing global trend towards cashless, electronic and online transactions and offer fair terms.
For now, Monetria focuses on sustainable business growth in Russia, product line extension and new services development. As this promising loan originator from Russia is doing the good work Russia, Grupeer’s investors can earn a premium return. Welcome to the Grupeer platform!