For a more stable financial future, Monestro is creating a world where people can invest in consumer loans in an intelligent and secure way. With innovative processes and procedures, it is encouraging more investors to embark on a journey towards safer, higher yield returns. We take a look at Monestro as its CEO Johan Orsingher wins CEO of the Year 2021 – Tallinn, Estonia.
Founded in 2016, Monestro is a peer-to-peer (P2P) investment platform that offers high quality, more secure and lower risk investment loan opportunities. Delivering on all investors’ need to understand what they are investing in, as well as earning their trust, Monestro is providing one of the best financial services that investors can find.
Instead of promising only high returns, Monestro offers a stable alternative investment for each of its investors. For a competitive yield, and a stable balance between profitability and risk, Monestro has a range of diversification opportunities to invest in fractions of loans.
This decreases and spreads the risk when it comes to its investors’ money.
Its process starts with registering and verifying identities, a simple process that can take just minutes. Then the investor simply needs to add funds to their account and select loans for investment on Monestro’s platform, before reaping the rewards every month once they have built up an investment portfolio. The money invested by the investor is transferred to the Loan Originator by Monestro, who is trusted by the investor to select the right originator for them in terms of risk level, yield, and other significant factors.
Typically, the Loan Originators from which Monestro sources its loans are consumer loan and credit companies, rather than banks. These Loan Originators retain the responsibility for selection and further execution of all obligations of the loan by the borrower.
Monestro works in co-operation with a Big Four accounting firm, and it has developed the Loan Originator Due Diligence process, a process which has been designed to protect the investor thanks to Monestro’s market leading risk management offering.
The Big Four accounting firms are the firms that dominate the industry. They audit more than 80% of all US public companies and are the four largest accounting firms by revenue alone. They advise on tax and offer a variety of management and assurance services that help big as well as small businesses and individuals to make the right investment choices.
As there is a large variety of Loan Originators on the Monestro Marketplace there is a need to have a risk team that can take care of their needs. Monestro intricately assesses each prospective Loan Originator before they join, using its Due Diligence procedure. By carrying out its important analysis of financial statements, management quality, underwriting policies, credit scoring, loan portfolio performance, and data accuracy, Monestro is able to build a profile of each Loan Originator to ensure the best service possible, as well as to determine eligibility.
Believing in full transparency, Monestro works with third parties regarding risk assessments and abides by its Loan Originator Due Diligence processes to be able to truly understand its Loan Originators’ situations as well as to minimise any risk. The standards that it sets for its investors abides by all legal regulations and requirements that have been put into place to protect lenders.
With its policies, Monestro provides the chance to invest in accordance with its rigorous criteria that means they will be more secure. Moreover, with its Buyback Obligation, Monestro protects its Loan Originators so that they can feel safe in the knowledge that their money is being taken care of.
Monestro has formed a monetary reserve to reimburse funds subject to the other conditions of its policy. This reserve is contributed to via Monestro’s own funds. Where voluntary reserve is agreed, Monestro pays 0.33%-0.55% to its reserve fund so that investors can rest assured that they are getting the best out of their interaction with this company.
P2P investments can experience many fluctuations over time, alas, resulting in a change in yield and returns for each investor. These changes can be due to economic downturns, crisis, and geopolitical events which are all difficult to judge and almost impossible to predict at the best of times. As the P2P marketplace is a new and fast-growing field that is always adapting, it is important to invest wisely with an educated idea of what the market is like and where it is heading. As this market is so much less risky, with less short-term volatility and less intense than investing in stock that with higher initial capital to get started.
By being based in Estonia, Monestro is able to reach the forefront of the digital world. As Estonia leads the digital economy of Europe and the world, it provides Monestro with the perfect environment to flourish and connect with its investors. Although anyone can invest across the globe, being based in Estonia means that Monestro has a great relationship with a leading digital mindset.
Not only does Monestro take pride in Estonian roots, but it takes pride in its extremely diverse and inclusive team. The internal culture promotes openness and full transparency for great connections between employers, employees, peers, and customers. It is imperative that each person feels heard and understood and with Monestro’s open nature, it is able to do this for everyone that it works with.
Coming from a rich background of experience, CEO Johan Orsingher has now won CEO of the Year 2021 – Tallinn, Estonia, for all of his dedicated hard work with Monestro. Not only has he got a wealth of experience with this company, but he also has a lengthy portfolio of success throughout his career life. Transforming every business that he touches. He is a self-motivated individual that has valuable Legal Tech, FinTech, and aerospace-IT experience alongside his passion for leadership, management and technology.
With a background working in LegalTech companies, Johan understands the importance of legal procedures and the ability to sustain business connections. For long-standing and strong relationships, it is important for everyone to be on board with all policies and laws. Johan’s mindset, “Step aside and step back so you can see in 3D”, shows us that he is really focused on finding solutions to potential challenges. By seeing everything in 3D, we can see the whole story and understand how to approach things.
Dedicated to building trust, Monestro is doing all it can to enable its investors and Loan Originators to have the best experience possible, and it does this by putting them first for better results. Its new product, launched this May, has helped its customers greatly; the secure payment services act as a safety net that not only minimises risk, but further maximises trust between Monestro and investor.
For the future, Monestro aims to continue building the trust between itself and its investors for stronger, longer-lasting relationships that keep individuals coming back.