In my last portfolio update, I told you that I started investing on the P2P lending platform Robocash. So today, in my Robocash review, I want to go into more detail and explain the reasons why.
Please remember that none of what I publish on my website is financial advice, just my personal opinion as an investor.
Let’s start with a bit of background about Robocash. After all, we want to know who we are trusting with our hard earned money.
The Robocash Group
First we need to talk about the Robocash Group, which is the group of lending companies offering all the loans on Robocash. It was founded by Sergey Sedov in 2013 in Russia.
It is currently active in 7 countries, where it issued a total of $932 million worth of loans to 12,3 million clients so far. The group mainly focuses on short-term and installment loans, both online and offline.
We’ll have a look at the group’s financial situation later on, when we get to the buyback guarantee on Robocash.
The Robocash P2P Platform
The Robocash P2P lending platform was launched in February 2017.
So far, investors financed a total of over 211 million euro worth of loans on Robocash.
Loan Types Explained
All the loans we can invest in on Robocash are currently offered with interest rates ranging from 11% to 12,7% per year, a 30-day buyback guarantee and group guarantee. We’ll get to that last part later on.
The Investment process is completely automated, which is not surprising, considering the platform’s name. You can’t buy loans manually, only via the auto invest.
There are a few differences between the loans that we can invest in. I will try my best to explain.
First, we have direct investments into loans from Spain and Kazakhstan, via Prestamer and Tez Finance. These are short-term loans with durations that typically range between 7-30 days. Here we directly invest into individual consumer loans.
And then we have indirect investments via commercial loans in Singapore, Kazakhstan and Vietnam. Here is how the commercial loans work:
With RC Riga Vietnam, we lend money to the Robocash Vietnam lending company and with RC Riga Kazakhstan to Robocash’s Kazakhstan subsidiary.
Meanwhile, with RC Riga Singapore, we lend money to a Robocash Holding company based in Singapore, which uses the funds for the lending activities of its subsidiaries in South-East Asian countries, like Indonesia.
The loan term for commercial loans ranges from 30 days to 2 years.
You can find out more information about each lending company on the Robocash website.
Buyback & Group Guarantee
As I mentioned, all loans on Robocash come with a 30-day buyback guarantee and a group guarantee by the Robocash Group. We also receive interest in full for the entire period of our investment when a loan is paid back late or bought back by Robocash.
So far, so good.
Still, we should not forget that a buyback guarantee is only as good as the financial situation of the company that’s providing it. So let’s have a look at the financial statements of the Robocash Group, which we can find on their homepage.
Luckily, the group is very transparent about its financial results, which are audited by KPMG, one of the most reputable accounting firms in the world.
According to the published financial results, the Robocash Group earned $15,86 million in net profit in 2019. Not only that, even in the difficult circumstances last year, they were able to generate a net profit of $10,66 million in the first half of 2020, according to their latest interim statement.
It’s great to see that they have a working, profitable business model, which gives me confidence as an investor on the platform. It’s also one of the reasons why I finally decided to take a closer look at Robocash and invest my own money.
What You Need To Know About Robocash
Before I tell you about my own experience as an investor so far, I need to address a few more things you might be interested to know.
Interest Payments On Commercial Loans
Commercial loans with longer durations pay interest on a monthly basis as well, at the beginning of every month. Since that part isn’t clearly displayed when looking at your investments on the platform, I wanted to mention it.
Robocash actually has a very unique feature. There is a payout function, which you can set up in your auto invest settings. If you activate it, the platform will automatically send paid back principal and interest payments from loans straight to your bank account, when they reach 50€ or more.
On April 16th, Robocash is introducing an updated secondary market, which I know is an important feature for many P2P investors to have. You’ll be able to buy and sell loans from other investors at any time without secondary market fees.
Robocash has a loyalty program for investors with an account balance of 5.000€ or more, where you can earn between 0,3% and 1% extra in interest. As far as I know, PeerBerry and Swaper are the only other peer-to-peer lending platforms that offer something similar.
My Robocash Experience
Alright, let’s have a look at my experience as a Robocash investor so far and my auto invest settings.
I started investing on Robocash on January 19th. After getting more acquainted with the platform, I increased my deposits to a total of 2.500€ since then.
Based on the size of my investment and the interest rates on Robocash, I’m expecting around 20-25€ of monthly cashflow from this platform. I’ll keep you updated in my monthly portfolio updates!
My limited experience with the Robocash support has been excellent as well, I received a detailed response to my two e-mails within less than an hour.
My Robocash Auto Invest Settings
When my first deposit arrived on Robocash, I simply created a single auto invest and selected all loan originators.
Well, I quickly realized that it doesn’t diversify over different lending companies and countries automatically, as all of my money was going into commercial loans from Singapore, even when other loans were available as well.
Since I like to diversify my investment over several loan types and countries whenever possible, I ended up creating two more auto invests for the other loan originators.
Here are my current auto invest settings:
- 50% of my funds are going into commercial loans from Singapore and Vietnam (loans from Vietnam are not available right now)
- 30% of my funds are going into short-term consumer loans and commercial loans from Kazakhstan
- 20% are going into short-term Spanish consumer loans.
You are of course free to use different auto invest settings, I just wanted to mention my own setup on Robocash.
My Opinion Regarding Robocash
Alright, so here is my honest, personal opinion regarding Robocash.
What I Like
- I’m able to invest into consumer loans and commercial loans from parts of the world that I’m less exposed to in my other investments, like Kazakhstan and South-East Asia, with an interest rate of around 12% per year.
- As you know, I’m a fan of platforms where the lending companies have a profitable business model, which they can prove via audited financial statements. This is something that’s important to me. The Robocash Group delivers in that regard, which gives me confidence in the 30-day buyback guarantee and group guarantee that they offer on all the loans on the platform.
- I like the unique features the platform offers, like the payout function, the minimum investment of just 1€ per loan and being able to see accumulated interest as well, in addition to what has been paid out.
- I also appreciate that once the auto invest is set up, the platform takes care of the rest and I don’t have to spend any more time on my investments there. There is also no shortage of available loans to buy.
What Could Be Improved
- I actually wanted to mention that I felt that the website needed a bit of a design refresh. And then on February 20th, Robocash launched a redesigned homepage! I think it’s better than it used to be, but it’s clearly designed for mobile devices first and I’m personally not a huge fan of these full screen layouts. Of course this is just my subjective opinion.
- I think the auto invest could use some diversification settings like on Mintos, where you can set up how much of your portfolio you want to invest into each loan originator. That way we would only need a single auto invest to diversify our investments on Robocash, instead of several ones.
- It took my a while to understand how commercial loans work on the platform, I think they should be explained more clearly.
All in all, I really like Robocash and what they offer. I actually can’t believe that it took me this long to take a closer look at the platform!
That pretty much sums up my review of Robocash. I would love to know about your own experience in the comments!
Robocash Bonus (1%)
If you found my review helpful and you’re interested in checking out Robocash, you can use this link or the referral code advE to get 1% cashback on your total investments on the platform after 30 days.
Robocash Review Video
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