P2P Lending

P2P Portfolio Diversification

Why you must have a P2P Portfolio Diversification

I was always thinking about having a P2P portfolio diversification to reduce the risk of default of one platform.

The recent cases of Envestio and Kuetzal confirmed me that it is a really important topic and that it was the case to go deep to implement a diversification strategy.

Let’s say we are investing 10000 EUR or USD in 5 different P2P platforms. The first way to diversify the portfolio is to divide 10.000 by 5 and invest 2.000 EUR or USD on each of them.

But I was attracted by the idea of Warren Buffet to study deeply one industry, in this case the P2P Lending, in depth, and use the learning to maximum profit on this industry. In practie focusing on few well selected opportunities is more lucrative than spreading the portfolio across a broad diversification.

My aim is not to get the top most interest rate from P2P platform, but to invest part of my global portfolio in a way that can reach 10% interest rate in a safer way.

I have read lot of post on internet on optimizing the P2P investment to reach 12-13-14%. I would rather prefer a lower interest rate but with lower risk. This is not an investment advice, it’s only my personal consideration. Everybody can see this matter in different way and it is ok.

So let’s see how I am analyzing the P2P platforms to make a score and decide where and how to invest in each one.

The main factors

Let me introduce the main parameters I am considering in my analysis for P2P portfolio diversification. They are not listed in order of importance.

Balance sheet

It should be nice to have the possibility and capability to read the balance sheet of each platform but I have three main problems

  1. I am not so good in analyze balance sheets
  2. I do not know where I can get all the balance sheets
  3. Each Balance sheet report data that are at least 6 to 18 months old

Fortunately, I have found a rating company that publishes financial report, it’s called s-peek. Taking their report analysis I can add this important information in my analysis. 

Share capital

The share capital is the money that the shareholder has put inside the company.

We can see a big difference among platforms. From 2600€ of Crowdestor to 1.700.000€ of Iuvo Group.

I feel safer to invest in a company that has a big share capital. It’s not an insurance, we have seen a huge company like Leeman Brother going bankrupt, but I feel much safer to invest in company with higher share capital.

Total amount invested

The total amount invested gives me the idea of how big is a company and hopefully how solid it is.

Number of investors

Same as the previous parameters, the more investors there are the safer I feel. I know that from the psychological point of view it is just the persuasion of the reciprocity and no more. A good company with good marketing can attract more persons.

Number of employees

It’s not an easy number to find out, but I use an indirect technique. I go to the LinkedIn page of a platform and look at how many employees are connected in Linkedin.

Here is an example taken from Mintos page at

Foundation year

The older is a company the safer I feel to invest in this company.

I do not want to say that younger companies cannot be a good investment choice. I am just thinking that the older is the company, the more structured it can be and I feel more confident to invest more money.

P2P lending industry is quite new and there are many new P2P platforms on the market.

Customer’s reviews

In my opinion, it is important to see what is the experience of other customers too. Not checking only the reviews on P2P blog sites. They are often interested in making a good review only to let other readers invest in the platform with their referral code. Not all the bloggers are like this, I ofter appreciate when I read a negative review.

So I decided to find a different approach not related to payback money.

I am considering the reviews on Trustpilot. I take note of the total number of reviews and the average score.

This is Mintos rate

The data

Here are the data collected until now.

p2p portfolio diversification

Can you help me to get the missing data?


I am working on 2 scores to have an index with which I can evaluate P2P platform.

In the first score I give 2 points to each green parameters, 1 point to yellow parameters and -1 to red parameters. And I make the sum.

In the second score, it is much more complicated and I try to give a weight to each parameter. 

Both scores give similar results. 
I am at a developing stage of this system, therefore any suggestion is welcome to improve it


The data considered gives only idea of the platforms.

Having these numbers together is something that let me think more deeply on how much to invest in each platform.
All the information comes from my own experience. I am not a financial advisor, what you read are just my toughts. Make your on investigation before investing in P2P lending. As already written the P2P lending is a risky investment.

This is just the start of the idea to find a way to classify P2P platform. What do you think about it? Let me know in the comments.

3 replies on “P2P Portfolio Diversification”

mintos share capital should be 750k. pls check. balance sheets are published on their website (this could be a good factor to be considered in your ranking). In addition I would say that it is not really easy your task because also if you consider just mintos you should evaluate loan originators in addition to the platform itself. moreover I would add that you could consider also the type of platform and investment (i.e. real estate, consumer loans, business loans). finally I would add that a good factor could be: regulated or not (probably all these platform are not subject to any supervision from public authority). anyway it is a really good exercise. keep doing! giovanni (listener of imprenditoridigitali podcast and proudly owner of

#1 mintos share capital should be 750.000 (see the balance sheet published on their website.
#2 The score is a very interesting attempt but for it could be improved(in my opinion).
I would add for example the following criteria:
-Supervised (Y/N)
-Balance sheet publication (Y/N), Audited (Y/N)
-Loan Type (Real Estate, Consumer, Business)
-Any form of guarantee from the loan originator/Platform (Y/N)
– Secondary Market (Y/N)
– Bonus/Reward (Y/N)
let me know what you think

Thanks Giovanni,
really appreciate your suggestion.
What do you mean with Supervised?
Supervised by who?

Leave a Reply

Your email address will not be published. Required fields are marked *