Introducing New Investment Rules on the Platform
On September 3rd, 2020, we have informed our investors about upcoming changes to the Debitum platform, coming into force on September 10th. In this blog post, we want to share with you what will change from now on moving forward and what the reasons have been for making those adjustments.
In case you haven’t received an email from us, please review your email subscription settings on the platform or reach out to us via email at [email protected].
Two new adjustments – what will be different?
There are two changes regarding the investment experience on the Debitum platform in the future.
First, the minimal investment size will increase from 10 EUR to 50 EUR per asset.
Secondly, the minimal first deposit increases from 100 EUR to 500 EUR.
Why we have decided to make the changes?
- Investors’ average deposit and investment size
We have analyzed deposits and investment statistics to find out the trends. We concluded that most of our investors were already in line with our new adjustments. We found out that the average investment on the platform was higher than 50 Euro per asset and the average deposit was way more than 500 Euro. As a result, the change is implemented by following our investors’ behavior and causing no issues for most investors.
Furthermore, the combined exposure of all investors who have deposited less than 500 Euro is close to 150,000 Euro. Contrastingly, the exposure of investors who have more than 500 Euro on the accounts is adding up to 2.25 million Euro.
- Increasing financial and operational efficiency
We are always looking for ways to improve our services as well as our efficiency. However, every interaction with our investors involves costs, both financial and time. Even though we enjoy serving and help even the smallest investors, we want to direct our efforts to motivated investors who have long-term financial plans with Debitum.
In the long run, the new adjustments will help us to become more efficient and enable us to allocate more of our resources towards areas that will directly impact and benefit our investors. Such as sourcing and evaluating new business opportunities with loan originators or spending more time on monitoring and screening risks associated with investments on the platform.
- Diversification among different loan originators instead of different assets
Diversification is crucial when minimizing investment risks, while at the same time looking for stable investment returns in the long run. However, we often see and witness indications of false diversification among different platforms. Investors usually focus on adding as many assets as possible to their portfolios, disregarding the fact that those assets might come from only one loan originator.
At Debitum Network, we want you to be fully aware of what a diversified portfolio of assets means and looks like. We believe that investors should focus on the quality of loan originators and direct their efforts to diversify their portfolios among different loan originators. The minimum investment size of 50 Euro per asset will further increase your awareness that the quality of assets is more important than the sole amount of different assets gathered.
What will happen to investors that have deposited less than 500 Euro by now?
We want to encourage our investors to take full control over their financial situation. Therefore, in case you have invested less than 500 Eur, we expect that you will continue to top-up your account in the upcoming months. As a result, we can help you to achieve your financial goals while offering stable and safe returns.
In the case of inactivity, we will limit investing functionality by the end of the year and reimburse the funds that you have invested on the platform.