This website uses cookies for analytics purposes. Learn more
Portfolio Valuation of P2P Lender
- Client: Leading Challenger Bank
- Project Length: 3 weeks
- Personnel: Partner, Principal + Analyst Team
Background
The client was interested in funding loans on an SME P2P lending platform
The requirement was to assess the capability of the platform to provide the desired ROI, and to forecast the impact of adverse economic conditions on performance
With the platform growing quickly, the client needed to understand the changing dynamics of the loan book and the resulting effect on long term performance
Engagement
The Vestigo team undertook a full review of the current and historic loan book to understand drivers of growth and assess real-world performance
This identified several shifts in recent originations, which indicated a reduction in quality
Using the detailed data tape analysis, a bespoke front book forecast was built, modelling the key drivers of performance by segment based on historical performance
A stress testing exercise was designed to understand the impact of a severe recession on investment return, split across the different industry sectors on the portfolio
See how we can help
Contact the
Vestigo team
Experienced risk and analytics consultancy
Building analytical solutions that are focused on your real-world objectives
Get the latest news from Vestigo