MoneyZen portfolio, 4 months

My MoneyZen portfolio is slowly starting to grow, so a short overview about how it’s doing.

I’ve currently invested 200 euros (50€/month) into Moneyzen and on the last days of December the first additional loan went out, so I now own 21 loans.

moneyzen4m

So, it took 4 months of growth to get an additional 10 euros in returned principal + interest to fund another loan. At this pace another additional loan made up of returned principal and interest will go out in about 3,5 months or so. The biggest problem I have with my portfolio right now is that there is no easy way to see your cash flow. To see how much money you made per month you essentially have to do the calculations by hand. (Look at the image above – there is no way to tell how much of the theoretical calculated interest is actually delayed). They promised a better system (2 months ago?) but no such development yet. I really hope that they mange to get a better overview going before they grow too big and then start suffering from the Bondora syndrome that they don’t have time to fix the basics.moneyzen4mportfolioAs expected, highest credit group loans are very rare, out of my 21 loans only one is from the 901+ credit group. So far most loans are paying fine, but out of the 21 loans I have, 5 are delayed by at least a month and one is delayed by 2 months. The longest delayed loan almost went bankrupt just before Christmas but they made some last minute payments so I haven’t seen the collections process in any way yet. They have a nice touch with sending notices though, the text reads something like “Please return the money you borrowed from other people.”

Future hopes

Overall, I’m happy with them. Giving out loans seems to go well enough, so at my pace I don’t see any issues. The biggest problem I see is that the development doesn’t seem to be going as fast as they’d like? I wonder what the reasons are for that. As my portfolio gets bigger though, I’d expect a much better overview of what’s happening with the money.

It is a lot easier than investing into Bondora though, once you set your portfolio to invest you don’t really have to check it too often. If they can keep this model working in a satisfactory way it’d be happy to increase my portfolio. The lower returns are OK if they manage to make it a more passive investment than Bondora is currently.

I’m overall a bit concerned about recovery and delayed payments though. Quite often the loans I have are delayed and I think they might have been somewhat optimistic with their promised default rate, but I guess I’ll see that once my first loans default, which will likely happen at some point. (Since with average interests well below 20% you can’t afford many defaults.) Main concern and hope for the next months, though, is a hope for better visuals and more data.

2 thoughts on “MoneyZen portfolio, 4 months

  1. 5 loans delayed out of 21 seem kind of bad considering that their stated focus is on the lower risk borrowers and interest rate is lower due to this. Of course overdue is not a default and we know from other platforms that this happens regularly with a lot of borrowers.

    Additionally, 21 loans is not much of a representative sample to base any final conclusions on. But these kind of updates are great to get an overview of how it’s performing in your portfolio at least, so keep us updated :)

    1. Well, while it doesn’t give a good overall understanding, then a starting portfolio is likely to be very similar to mine. What’s positive though is that a lot of those delayed loans are back on track, so the delays don’t always mean defaults.

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