Bondora removes Primary market

In recent months it has become clear that the Portfolio Manager offers greater efficiency through automation compared to manually investing. The increasing benefits of Portfolio Manager are the result of recent updates to the funding process, which optimize speed. Moving forward we will continue to focus efforts on further improving Portfolio Manager, Bondora API, Secondary Market and the reporting features available on the platform.


Why is Bondora removing the Primary Market from the user interface?
Bondora is removing the Primary Market from the UI because the speed of our popular automated option meets the investing and borrowing needs before manual investing can take effect. Our process improvements have created an environment where almost all loans are funded before they become visible in the UI. As a result, the Primary Market is most of the time empty.

Shares between different tools

This scarcity is due to the fact that when a loan enters the market it is open to bids for 10 minutes. After the 10 minutes expire the loan is closed. Our internal analysis and reporting shows that almost 100% of loans are funded within this brief window of time. Therefore, there is little reason to hold loans open any longer, as doing so would create unnecessary delays.

For the future

Bondora PM offers an array of settings. These choices enable the investor to employ a strategy that is every bit as unique as that of a manual or even API user. Diversified risk is easier than ever with the “minimum investment per loan” option. This feature allows the user to invest smaller sums across a greater number of loans thereby defraying risk.

The cumulative effect of the PM interface is a smart approach to risk with swift execution. This benefit is evidenced by the fact that each investor’s bid will be applied only to loans with an equal, or lower risk profile than the composition of their whole portfolio. This consistency keeps the users capital in the market where it can grow without unnecessary risk. Additionally, the speed of the interface has increased with the advent of a faster PM. Recent changes have enabled the PM to start running as soon as the loans reach the market. This speed is in contrast to the older model that ran periodically on an hourly basis.

Share of manual investments has decreased down to 11%. As already mentioned, manual investments have been decreasing for a while now and the reason being that manual investing is much more limited in terms of speed of investing and data analysis comapred to the Portfolio Manager and Bondora API.

Investments through API represented just over 6% of total investment amount on the platform over the month. The share of API investments has been either steady or very slowly increasing. This is explained by the fact that Bondora API has mainly been an choice for those investors more comfortable with programming skills and the nuances of the lending market.