Debitum Network platform update: December statistics (2020)
December was the month concluding a great year for Debitum platform. During the year, we reached multiple significant milestones: over 3 million EUR outstanding portfolio, over 20 million EUR of total invested volume, almost 6000 active users, and more than 30 million EUR of provided assets. Compared to 2019, Debitum grew from an unknown platform to a safe and profitable investment tool for diversifying investors. We maintained 0% default rate, decreased the buyback rate nearly to 0%, and none of our investors lost their funds. Also, we have successfully moved our operations to a new entity for the regulation purposes and we know that Debitum will reach new records during 2021!
The number of registered users (activated)
At the end of 2020, Debitum had almost 6000 active users on the platform. Comparing to December 2019, almost 2000 new users had joined the platform. Compared to November 2020, the user base increased by 2.34% and the user growth trend is getting convex shape. During year 2020, Debitum have tried using several marketing strategies that brought little to no results. Therefore, Debitum will focus its marketing efforts towards affiliate networks and personalized approach towards its investors. Moreover, future plans involve redesigning the front page of the website and make the platform more intuitive for new visitors. All in all, Debitum team is happy to see that the user base is increasing but solving the issue of slow user base growth is the key focus in the beginning of 2021.
At the end of 2020, Debitum team noticed a surprisingly increased deposit activity on the platform. In the last three months of 2020 alone, Debitum have collected more than 1.5 million EUR of deposits. In December alone, the overall growth of deposit volume reached 6.5% and is expected to increase at a higher pace in the beginning of 2021. During year 2020, we have increased our minimum deposit and investment requirements. Despite that some investors reacted negatively, we have successfully increased the volume and number of deposits. Moreover, Debitum launched multiple cashback campaigns that were well-welcomed by our investors and brought additional momentum to the growth of overall deposit activity. Additionally, our team have started providing account management services to our biggest investors. As a result, in 2020 alone, Debitum attracted over 3.9 million EUR worth of deposits, which is more than 2018 and 2019 deposit volumes combined. Based on the desired deposit volume in 2021, our current challenge is to increase the number of investors depositing on the platform and find an institutional investor which would cover a significant part of the expected portfolio.
During year 2020, we have provided more than 18.5 million EUR worth of assets on the platform and that is more than 2018 and 2019 volumes combined. In December alone, we have provided 323 assets worth more than 2.15 million EUR. Therefore, we are finally solved the issue of cash drag on the platform and our investors have plenty of assets to choose from. During year 2020, 6 loan originators joined the platform and successfully developed business with Debitum. Moreover, the facilitation rate of assets from the new loan originators was over 80%, which is a great achievement by our investors. Also, in 2020 alone, Debitum earned more commission income than 2018 and 2019 commission earnings combined. This gives a great momentum to the beginning of 2021. However, as mentioned previously, the current challenge of Debitum is to attract new users and deposits.
During year 2020, more than 15 million EUR worth of investments were made on the platform. In December alone, our investors invested 1.54 million EUR which is a 7.11% increase in the overall investment volume. In 2020 alone, our investors invested twice more than in 2019, thanks to our enlarging community of investors and increased investment activity of existing users. During 2020, Debitum shifted from short-term investments to longer-term opportunities. At the end of the year, we have reached average investment term of 100 days which we think is an ideal duration to satisfy both short-term and long-term oriented investors. Moreover, we have increased our minimum investment size to 50 EUR which allowed to increase the size of average investment significantly. By building trust and maintaining great performance, our investors are more and more keen on investing larger amounts in fewer assets. Additionally, we have successfully increased our average interest rate from 7.7% in the beginning of 2020 to 8.8% at the end of the year. Increased interest rates give more room for providing great campaigns for our investors and earning higher commission earnings in the future.
Most popular industries
In December, Debitum investors invested in assets from 12 industries. Most of the investments went to the ITT, services, and trade sectors. Most of the assets in the services sector were invoice financing loans that have high turnover. Contrastingly, most of the assets in the ITT and trade sectors were business loans with longer terms. Despite that, Debitum investors trust the loan originators which provide these loans and increase their investment in these companies.
Money invested using the auto-invest tool
In December, similar to the overall invested volume on the platform, Debitum experienced a significant increase of automatic investments. 517,004 EUR were invested using the auto-invest tool. That is a 33.41% of the total invested volume in December. Debitum investors are more willing to use the auto-invest tool as there are more and more different loans added on the platform. If an investor seeks to diversify his portfolio, the auto-invest tool is one of the essentials to begin with. As more assets will be uploaded on the platform, we expect to see a positive trend in January 2021. Therefore, do not miss another good opportunity and create an auto-invest plan today. Then, enjoy compiling interest, which the tool will reinvest for you when the principal and interest are repaid.
Lastly, instead of monthly updates, Debitum will provide quarterly statistics with richer analysis and reading. Stay tuned for updates in the future!
Disclaimer: Investments in financial products are subject to market risk and any investment should only be done with risk capital. The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.