FAQ

What Grupeer is doing to overcome the crisis situation?

As of the end of March we have conducted riesgorous internal cost cutting, which includes development, marketing and office costs, we also substituted employees with outsourcing to ensure core functions. As of the end of April we began a portfolio performance audit to determine best options for our investors, as well as loan originators. Performance audit includes - risk analyses, finance audit, AML improvement, loan originator financial health check & debt control, discussing recovery options with those who have issues. In June we will announce an action plan for repayment of investments.

It seems that other P2P are continuing to operate as normal. Why is Grupeer hit so hard?

We can answer only for ourselves. Our current business model was fit for fast growth, our plan was to introduce several measures for stabilization such as become a licensed investment broker company, launch secondary market and risk accruals, which we did not manage to do before the crisis started. In perspective, it would allow us to leverage this situation.

Currently, we have conducted rigorous internal cost cutting, carrying out a portfolio performance audit and we will publish an action plan for our investors in June.

We believe that our previous results show our ability to carry out our promises. Our investor base was stable - 42% of all the registered investors made more than 1 investment, and 33% made more than one deposit. From 2017 till 2020 in total we have repaid 32M euros, which includes 4.4M euros of interest payments.

Why did Grupeer not communicate with its investors and loan originators?

Grupeer as a platform within the last year has grown tremendously, and this is the first time that we find ourselves in such a situation. Our failure to communicate was because we were focused on finding a solution for the situation, as well as in March we cut our staff tremendously, thus some processes became slower. Currently our focus lies in completing the portfolio performance audit and creating a viable action plan based in the interests of investors. We intend to announce it in June.

Why I cannot withdraw my deposit that was not invested yet?

Currently, Grupeer’s bank accounts are frozen, we are doing everything in our power to resolve the situation, and we will update you about the situation as soon as we have information but not later as June.

In this situation, several aspects have collided - two Estonian P2P platform collapses caused market uncertainty,  which is why banks strengthened their AML requirements for P2P business, including us. Also, COVID-19 caused foreign currency, especially Russian and Belarusian ruble, internal protection measures in some regions.

Grupeer as a platform within the last year has grown tremendously, and this is the first time that we find ourselves in such a situation. Our failure to provide timely and sufficient communication to our investors, caused chaos and that caused an avalanche, which is why banks froze our accounts. Now we are addressing this issue with banks directly. Amongst other things, we also have conducted rigorous internal cost cutting, carrying out portfolio performance audit and we will publish an investor action plan in June.

Why Grupeer is not paying my interest?

Currently Grupeer’s bank accounts are temporarily frozen and some loan originators faced the difficulties caused by COVID-19, we are doing everything in our power to resolve the situation, and we will update you about the situation as soon as we have information but not later as June.

Our goal is to settle in the best possible way with our investors, thus currently we are conducting a portfolio audit, and we will announce an action plan for investors in June.

Is it possible that Grupeer actually has used financial means that were in my account, but were not invested?

No, the choice of investment is solely yours. Currently your withdrawal is pending because Grupeer’s bank accounts are frozen. We are doing everything in our power to resolve the situation, and we will update you about the situation as soon as we have information but not later as June.

Currently, several aspects have collided - two Estonian P2P platform collapse caused market uncertainty,  which is why banks strengthened their AML requirements for P2P business, including us. Also, COVID-19 caused foreign currency, especially Russian and Belorssuain rouble, internal protection measures in some regions.

Grupeer as a platform within the last year has grown tremendously, and this is the first time that we find ourselves in such a situation. Our failure to provide timely and sufficient communication to our investors caused chaos and that caused an avalanche, which is why banks froze our accounts. Now we are addressing this issue with banks directly. Amongst other things, we also have conducted rigorous internal cost cutting, carrying out portfolio performance audit and we will publish an investor action plan in June.

What about BuyBack Guarantee?

Exercise of the BuyBack guarantee is directly linked to and ensured by the ultimate loan originator. Our ability to facilitate this process is limited at least until the time above bank account and loan repayment issues have been resolved to satisfactory extent.

Why are Grupeer’s accounts frozen?

FinTech is a new industry, where development happens faster than its legal framework. However, at the core of our business lies the interests of investors and partners, thus we base our work on best practiсe of the industry, AML & risk requirements, other regulations required to observe consumer rights & best business practices. Current situation is a collision of several aspects. Two Estonian P2P platform collapse caused market uncertainty,  which is why banks strengthened their AML requirements for P2P business, including us. Also, COVID-19 caused foreign currency, especially Russian and Belorssuain rouble, internal protection measures in some regions.

Grupeer as a platform within last year had grown tremendously, and this was the first time that we found ourselves in such a situation. Our failure to provide timely and sufficient communication to our investors caused chaos and that caused an avalanche, why banks froze our accounts. Now we are addressing this issue with banks directly. Amongst other things, we also have conducted rigorous internal cost cutting, carrying out portfolio performance audit and we will publish an investor action plan in June.

Why is Grupeer not accepting new investors now?

During these volatile times, our main priority is to recover from the crisis in the best way possible for our current investors. Currently, we are focusing on our existing liabilities before taking on new ones.

How many of your loan originators are “bad debtors”?

We are currently carrying out a portfolio performance audit, and we will share this update in June with our investors.

How do you carry out your due diligence?

Grupeer pays special attention to the due diligence procedure, because our priority is the safety of investors. More than 70% of all loan originators that apply to Grupeer are rejected, because they did not meet our requirements.

Due diligence consists of several steps: first of all, we check the legal structure, AML, then we monitor beneficiaries, examine the financial statements and the client’s portfolio volume. After that the audited annual report is checked. In case the audited report is not available, Grupeer’s representatives visit the loan originator for an additional check. And finally, all loan originators pass the special questionnaire.

All this information is a base for Grupeer’s internal scoring. Rating scoring model analyzes 30 different criteria, which can affect overall risk level. So, after this strict procedure we can be sure that the loans offered to our investors come from reliable loan originators.

 Do you check your loan originators after you have entered into agreement with them?

Updated due diligence procedure involves a mandatory visit to our new loan originators. We want to point that out, earlier the visit was optional. So, Grupeer representatives visit all loan originators at the moment when the cooperation agreement is signed. Further we carefully monitor our partners’ business activity and if we notice any red flags, Grupeer’s representatives might go to visit and check the loan originator.

Why do some of the loan originators (like Northcon Norge, Dziesiatka Finance), whose projects you have on your platform, have denied cooperation with Grupeer?

We have analysed the situation. When it comes to Northcon Norge - its investment project was published on Grupeer’s platform too fast, thus breaching internal procedure. We had performed all required due diligence procedures, while bilateral approval of agreement was pending. We shall remove the investment projects from our site immediately, and we will return financial means to this project investors in the same procedure as to anyone else who had deposited money in Grupeer platform. Our apologies for the inconvenience.

When it comes to “Dziesiatka Finance” we believe it is a misunderstanding due to legal formalities, as Dziesiatka Finance” has agreement with Grupeer’s partner - “Finsputnik”, which uses Grupeer platform to publish their investment projects. We are communicating with Dziesiatka Finance” in order to clear up the misunderstanding and agree on further next steps.

We are also aware that loan originator “Ibancar” has expressed doubts about the stability of the Grupeer, because they received back the bank transaction intended for Grupeer. Currently Grupeer bank accounts are frozen, we are doing everything in our power to resolve the situation, and we will update you about the situation as soon as we have information but not later as June, as well as we will communicate this fact to all our loan originators. We would like to reassure that we are committed to resolve the situation in the best way for our investors.

 Have you ever ceased to cooperate with any loan originator?

Yes, we have. The reasons for ceasing cooperation can vary but our TOP priority is to protect interests with our investors. We always have shared this information on our blog. For example, last November Grupeer terminated loans offered by Monify JSC. Companies came to this decision when Monify decided to change its strategic business plan. Grupeer has terminated cooperation with the Russian loan originator Kviku. The company went through a severe due diligence process, we were excited by their business model too. The only reason for us to stop Kviku’s loans was the lack of interest from our investors.

 What is Grupeer Platform?

Grupeer platform is an electronic trading place that provides an opportunity to invest your free funds in secured loans. The services offered by the Platform are the servicing of claim right acquisition deals, i.e. the Platform brings together two independent participants of the deal – the  seller of the claim rights (credit company or investment company) and their buyer.

What is user identification number?

It is a unique combination of capital letters ID and numbers assigned by the Platform to the user at the time of registration and allowing to identify him or her during the implementation of any transactions through the Platform. The identification number must be indicated each time when making a wire transfer to Platform bank account.

Should I provide information on the origin of funds?

Yes, in accordance with AML legal regulation information on the origin of funds of our clients shall be obtained. The clients shall provide this information during identification process in their profiles. The detailed information on this procedure is available for the clients in the Terms of Use and the AML Policy on the website.

 What is user’s posting account?

Posting account is an individual accounting system that provides the user with a service for accounting the deals closed using the Platform. Posting account is not an individual stand-alone account in the terms of banking services or payment system services.

What information or documents do I need to provide to the Platform for identification and KYC purposes?

The Platform requires the documents and information from its clients for their identification in accordance with the Terms of Use and the AML Policy. The requirements are based on the AML legal regulation in order to prevent money laundering and terrorism financing.

The list of the documents to be submitted and the detailed identification procedure is included in the Terms of Use placed on our website and binding for all our clients. It is also available on the identification page in the client's profile. Some of the documents are compulsory, some have to be submitted additionally only on separate request of the Platform.

The Platform keeps and processes the personal data of the clients in accordance with our Personal Data Protection Policy.

I lost my password. What should I do?

If you forgot your password, you have the option to restore it via the Platform homepage by making an appropriate request. A new (temporary) password will be sent to your email. For security reasons, we strongly recommend that you immediately use the temporary password and change it.

Do you have two-factor authentication?

Yes, you can additionally secure your investor's account with two-factor authentication (Google Authenticator). More detailed information about 2FA is available in our blog.

I still have questions. How can I contact you?

Email us at [email protected] Grupeer Support team makes every effort to respond to user requests as soon as possible. If your question is highly specialized, legal or financial, Grupeer Support team can forward it to the appropriate specialist of the company to provide quality and comprehensive information. In this case, it may take several days for the answer to be received.