I am in the process of exiting Twino

While Twino has served my portfolio well, then the time has come to stop investing there for me. Overall I have no issues with the portal or how it’s run, there are just a few reasons why it’s no longer compatible with my portfolio and there’s no reason to keep it.

Lack of short term loan volume

That isn’t to say that there aren’t short term loans, there are just too many investors who want to have those short term loans, meaning the level of cash drag you experience when waiting for your spot in the queue is a bit too much. There is also an actual lack of loan volume, mostly due to the lack Georgian loans.

BBG vs PG loans

Ever since PG (payment guarantee) loans were introduced I’ve struggled to get any BBG (buyback) loans. I’m not fundamentally against PG loans, however they do lock you in for a LONG time. The default rate at least in my portfolio was pretty big, meaning that quite a bit of my money is locked in for a fair bit longer than I’d want. The original reason why I added Twino to my portfolio was the liquidity of the loans, that is something that is no longer true.

Big changes in the business

Seems like Twino is going through some turbulent times. The Georgian changes, different countries they’re pushing into, structural reorganisation. All of those are understandable, however their communication seems to have fallen off a cliff somewhat. I’ve been waiting to read their 2016 financial report, and as of now it’s still not available.

Where is the money going?

Well, a part of the money is going into the down payment fund of my new home, but most of the money will be transferred to Mintos. There’s enough selection of long and short term loans for me to choose from and enough originators to manage portfolio risk.

How quickly will I exit?

Well, I got the money I added + a bit on top within the first week. After a withdrawal request it takes about two days for the deposit to appear in your bank account. So far I’ve managed to get about half the earning, and due to defaulted PG loans I’ll actually manage a full exit by April 2018… Which is a bit annoying, but I’ll live.

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Overall Twino has served me well, with perfectly OK returns. Just since I stopped adding money almost a year ago now due to lack of accessible loans to my taste, there isn’t much point in keeping it about. I’ll see how they are doing and how the loan balances improve and may consider a return at some point.

16 thoughts on “I am in the process of exiting Twino

  1. It’s really sad to watch one of the best platforms fading like this. Twino was the first platform I invest in who offered BuyBack loans and they have served me well too.

    I could tell you when to log on to get all the 11% 1 month loans you want but it still doesn’t change all the manual work you have to do. It’s not really worth it. I think there’s a lack of long term loans, all I can get is 1 month. I wish I could get some 12 month loans to minimize the work of reinvesting.

    I’d love to stay in Twino but unfortunately it’s also my first exit choice when I eventually have to sell out for the down payment of my first real estate investment.

    1. Yes, there are certain times when loans are added, but waiting online to catch them goes completely against the idea of a passive P2P portfolio for me.

  2. I exited from Twino some time ago but now I’m in again as I need to park my money somewhere short time. I choose loans (1 month, 11%) only manually and as Jorgen said, I also have already some ideas, when new loans are usually added. But Twino is only short time option for me too. Times change…

  3. After reducing my position on Twino some months ago, due the lack of short term loans, recently I came back.
    Results are acceptable for passive investment, BBG is 97% of my portfolio, and website is better than most of competitors.

      1. Yes, you are correct.

        I have the same amount invested Twino and Mintos. Mintos is currently performing better, 1,3% higher than Twino. I currently invest in 5 different platforms.

        You know, all the eggs in the same basket is a little bit scary.

      2. Well, Mintos does charge you if you want to sell your loans, so there is that. Also, some of their loans that came with a buyback defaulted and they didn`t buy them back, am still waiting for some of them to recover. More than half a year in some cases.

        1. True, Mintos SM does charge money. However, buyback is not a 100% set-in-stone guaranteed, any of the portals that offer it can fail to do so in dire situations, hence why you should diversify. I also got hit on an Eurocent loan, time will show how that works out.

  4. For Twino i don’t like that creating auto-invest portfolios is some rocket science. I constantly see Cash in my account, and though i select auto-invest criteria that matches 1.000.000€ in last 30 days, i log in next quarter and see even more cash.
    For Mintos, what worries me is that all the loan originators are related to one man: https://www.evoinvestor.com/mintos/

  5. Just like you and most other people commenting, I totally understand this decision (I myself have only 2 loans left on Twino).

    While it may seem sad that a P2p lending platform loses its appeal (as Jørgen mentions), I tend to view this as a proof of the dynamism of P2P lending market as a whole. If Twino doesn’t perform as well as it used to, it’s also because competitors did catch up. Opportunities still abound and though it’s annoying to move funds around, it’s the price to pay for the great returns we enjoy !

  6. Hi, Kristi!

    Sad to see you leaving TWINO, but anyways, HUGE thanks for being our customer for such a long time!


  7. Same here.
    Btw what do you think about Omaraha? The rates have droped significantly there, I did some math yesterday to try to calculate what would be the expected net return after writeoffs at these rates, and got 13.5-15% p.a. range.
    Calculation based on Estonian only 800+/900+ loans, all maturities, current market rates, my portfolio data – historical writeoffs & actual interest received in September & October, tested those two monthly periods.
    The old portfolio is still bringing in good money, but based on the above analysis I stoped reinvestments, feels sub par risk/return proposing all things counted.

    1. Omaraha is by far my biggest % of portfolio. While the returns have dropped a bit, I still expect to get a reasonable 20-25% yearly return. You do have to actively play around a lot more with Omaraha, if you go by recommended numbers then the returns are much lower than they could be. There are a lot more investors now in Omaraha though, bringing the returns down, so I’ll have to reassess after a while.

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