What Finbee” has in common with bees, what kind of return investors get, what not only Lithuanian but also foreign investors value, what foreign market the company plans to enter in the near future – all this is discussed in an interview with Finbee’s director Darius Noreika.
Can you briefly describe FinBee and how you came up with the reference to bees?
We chose the name Finbee for our P2P lending platform because it seamlessly blends finance with the positive symbolism of bees. Finbee is a simple and clear brand name in both Lithuanian and English languages. Bees are seen as hardworking and value-creating creatures, thriving only with a good person as a beekeeper.
This aligns perfectly with our company values. We view our platform as a hive where lenders, borrowers, and the platform operator cooperate to create value for everyone involved. For the hive to thrive, it must be managed by a reliable and prudent team upholding the highest professional standards.
What inspired you to start this company?
In 2015, my former partner sought a way to finance loans without relying on hard-to-secure institutional funding for our lending business. With over 8 years of banking experience, I saw flaws in the traditional banking system and believed that I could create a company that was both a great place to work and highly valuable to customers. This vision led to the creation of Finbee. Starting with just four people, today, Finbee has grown into a dynamic team of nearly 60 dedicated professionals.
What are the types of investments available on Finbee?
We offer two investment products: consumer loans and business loans for small companies. All loans are originated in Lithuania, a fully regulated market since 2016 with strong creditor protection. This environment allows investors to earn stable double-digit returns without taking too much risk.
How do you find potential investments?
At Finbee, we have two types of investors: retail and institutional.
Since 2015, we have relied on organic growth of retail investors, achieving 98% YoY growth To meet the increasing demand from borrowers, we recently launched an affiliate program to expand our retail investor base.
For institutional investors, we are actively seeking potential partners interested in investing in P2P loans alongside our retail investors. In the past few years we have closed 4 deals with institutional investors, most of them in seven-digit amounts, including a state-ran agency Invega.
Who is on your team and how do you complement each other?
A major part of our management team brings extensive experience from banking and fintech space. With the entire loan cycle managed in-house, we require the most competent individuals to ensure smooth operations.
In our early days, a small team handled all aspects of the business. Now, as we’ve expanded, we’ve specialized our roles, allowing team members to focus on specific functions. This specialization leverages the deep expertise of our team, maintaining efficient business processes and sustaining our rapid growth.
How are you regulated and what does that mean to your investors?
Finbee has been fully regulated since 2016 and holds three licenses: consumer credit provider/P2P lending platform operator for consumers, European Crowdfunding Service Providers (ECSP) licence for businesses, and electronic money institution license for facilitating payment services. We are supervised by the Central Bank of Lithuania.
This regulatory framework ensures an optimal user experience for our investors, allowing you to register and start investing directly on Finbee. Unlike other Lithuanian platforms, there’s no need to open a separate payment account with a payment provider, and non-Lithuanian investors really appreciate this feature.
Overall, regulation creates a safe environment for investors and minimizes fraud risk.
What are the potential earnings for an investor on Finbee?
With nearly a decade of experience in the market, we have accumulated extensive data from loans that have completed the full cycle from origination to collection. We use this data to forecast future returns.
Based on current interest rates, historical portfolio performance, and debt collection results, investors can expect to earn a 13.5% pre-tax net return on consumer loans and an 11.5% return on SME loans. The net return varies based on risk – the higher the risk – the higher expected reward. For example the riskiest consumer loans generate 15.9% expected pre-tax yield.
What are the key milestones or goals you aim to achieve this year?
Our focus remains on sustainable growth. Our company has been operating profitably since 2017 and last year the group generated over €1 million EBTDA.
We aim to reach €200 million in consumer and SME loan originations by the end of the year. Additionally, we plan to expand our SME lending services to Poland.
