The survey was conducted by the National Rating Agency (NRA) following the results of the first quarter of 2019. MoneyMan ranked the first line of ranking by portfolio volume. It amounted to 4.6 billion rubles, which is 12% more than in the Q 4 of 2018.
Demand for microloans is growing: business model of microfinance organizations allows to provide loans to various segments of borrowers, the rating agency notes. The market continues to consolidate: the number of MFIs for the past 2018 year and the first 3 months of 2019 decreased by 14% to 1994 companies. The retail segment was the driver of portfolio growth in 2019. At the same time, business shows high demand on loans.
The largest players of the microfinance market enter the bond market — this is the key event of the first quarter of 2019. In May, “Online Microfinance” (part of the group ID Finance) issued exchange bonds for 300 million rubles with oversubscription. This proves high confidence of investors and a positive assessment of the company’s and market prospects. On the first day of trading on the secondary market the securities were traded above par.
Entry to bond market helps companies diversify funding sources, increase business openness and transparency, and reduce borrowing costs. Creating a public credit history is a tool to increase investment prospects for companies. Step-by-step continuation of the public credit history will allow the issuer in the future to expect a decrease in the cost of raising funds from the market, NRA analysts say.
In Q1 2019, the market showed its adaptability to regulatory changes, Irina Khoroshko, General Director of MoneyMan says. MoneyMan optimizes business processes and increases efficiency with new technologies. So, in 2019, the module of overdue debts collection, based on artificial intelligence, was introduced and the accuracy of the program, which is responsible for returning users to the service, was increased, Irina Khoroshko says. In addition, the company has adopted a new marketing strategy, she adds.