Bank changes fee structure
For Bank investors , a one-off fee of EUR 4 per purchase of a loan will be charged for the previously free investment. Upon revocation of the credit agreement by the borrower within the cancellation period, the processing fee will of course be refunded.
Bank will change the fees for the credit marketplace
For Bank’s borrower , instead of 1% of the loan amount, it is now scheduled:
– For 36-month loans, one-off 2% of the loan amount or 0.66% per year, at least EUR 40 per loan
– For 60-month loans, a one-off payment of 2.5% of the loan amount or 0.5% per year, at least 60 EUR per loan
– At the same time, the minimum loan amount for Bank will be raised from € 500 to € 1,000, including partial funding.
As before, Bank has no up-front fees . This will allow you to be sure that you will only be charged if you receive a service, such as a loan or a financial investment.
Of course, we realize that a majority of users find the Bank marketplace better with less fees than more. Nevertheless, this step is important so that Bank can continue providing you with this good offer and the infrastructure for it in the future.
1. Benefit for Bank investor
a. Investors can earn good returns from Bank
The concept of “loans from person to person” works and offers investors clear added value in the form of returns. Since its launch in March 2007, the average monthly return on investment (median) has been 9.4%. For 90% of investor portfolios, updated return expectations are between 4.7% and 12.9% per year (excluding the top 5% and worst 5%). Your investor return will be little affected by the processing fee. An example: someone creates 500 EUR over 36 months and receives 9% interest. In this case, the processing fee reduces its return by about half a percentage point. At 60 months, the reduction is only about 0.35%. At 250 EUR and 9% interest for 36 months, the processing fee reduces the return by about 1.2%, at 60 months by about 0.7%.
b. The risk of investing in Bank can be assessed empirically
So far we have not charged any processing fees because we have given our investors a “pioneer bonus”. This was also due to the fact that the risk quotas published at the start were a good guide but not yet validated. After more than 20 months, there is a good database that is publicly accessible to all investors via the marketplace statistics. Based on this you can estimate and price your risk as an investor.
2. Benefit for Bank’s borrower
a. Borrowers receive fair and quick financing from Bank
Even with borrowers, the previous fees of 1% are a “pioneer bonus”. Meanwhile , borrowers usually get within 1 week their money on fair terms – the start was still unclear how fast that is. The Bank solution is also positively rated by Stiftung Warentest, our offer is described by the financial experts as the “first choice”.
b. Bank is cheap and transparent for borrowers
Overall, Bank is one of the cheap credit providers in Germany with the increase in agency fees to 2% for 36 months and 2.5% for 60 months. Taking into account that borrowers at Bank do not have to pay prepayment penalties as with most banks and no notice periods are to be considered, Bank is far ahead.
3. Services for investors and borrowers
– Opening a free user account (including PostIdent)
– preliminary examination of borrowers and transparent risk assessment of credit projects; (including Schufa scoring)
– Legal certainty by providing valid and reliable standard contracts between all parties
– Ongoing control of payments by monthly payments and payments
– Risk minimization for investors through monthly pool compensation and related calculations
– and if problems arise: structured care of late payers in the dunning process
Our vision is to establish an online marketplace for money . Especially in times of financial crisis shows that such an alternative to banks makes sense. We are not criticizing the banking system as a whole, but the “decoupling” of real value chains that has occurred. This confirms us in enabling borrowers and investors to interact with each other through Bank’s direct money transactions . In order for this to work sustainably, and given the benefits and benefits that customers receive from Bank, we consider the new fee structure to be meaningful and fair .