Value Nomad

September 30, 2020

Nibble Finance Review

Nibble Finance Review: A brand new, Russian based platform trying to disrupt the investment scene in emerging markets. Let’s analyze the platform and see if it’s as exciting as it seems.

In this Nibble Finance review we dive deep into the platform and its functions. Be sure to stay tuned until the end to read our pros, cons, and verdict.

nibble finance review

Nibble Finance Overview: What is Nibble Finance?

Nibble Finance is a new peer-to-peer lending platform launched in January 2020. It’s part of the Russian group, IT Smart Finance (ITSF) that has been around since 2014.

ITSF operates in Latin America and other “emerging markets,” providing online lending, digital banking, mobile banking, credit scoring, risk assessment, among other financial services.

Nibble, on its part, aims to bring innovative financial solutions to the market by using machine learning and artificial intelligence to score loans. According to the company, it enables customers to invest in non-banking lending products with a buyback guarantee.

The platform has an on-going partnership with Joymoney, a Barcelona-based company that offers fast microloans of up to 300 EUR. Joymoney is also part of the ITSF group.

To its credit, Nibble is part of IT Smart Finance, a larger lender company that specializes in FinTech product developments. Also, the leadership has extensive experience in the industry.

The platform operates under Estonian laws, with a legal address in Latvia, while the team physically operates from Barcelona, Spain.

ITSF – A Brief History

ITSF, Nibble’s parent company, has over 500,000 registered users across their platforms. It employs more than 250 people among all the companies in the corporate group.

The company has issued more than 1,000,000 loans since its founding in 2014, totaling more than 107 million euros. According to ITSF’s President and Founder Maxim Pashchenko, the company had net revenues of $1.5 million in 2018 and reached 500,000 users across its platforms back in June 2018.

The company has a proven track record across the Eurasian market and is working to cement its position in the Spanish market.

nibble finance review

With Nibble, the company hopes to offer investors an alternative to traditional financial assets, allowing them to start slow and ramp up their investors.

How to Open an Account on Nibble Finance

Nibble Finance offer a registration form on the website where you can easily register and open an account. You’ll need to fill in your name, email, and phone number to begin the registration process.

Click Here to Open an Account on Nibble Finance

How to Invest in Nibble Finance

Investment on the Nibble Finance platform is simple and straightforward. An investor needs only register on the website, provide essential information, then create an investment portfolio with preferred parameters.

Investors can start investing from a minimum of 10 EUR to a maximum of 10,000 EUR per month. Loans are within the IT Smart Finance Group.

Nibble only allows payments from bank accounts through Paysera, an international payment system. This is done to protect an investor’s data and simplify verification.

According to Nibble, the platform automatically creates an investment portfolio and gives investors an option to choose specific parameters such as country, investment amount, etc. to create personalized portfolios. All loans come with a buyback guarantee.

Types of Investments Available at Nibble Finance

Nibble offers two main types of loan investment products. These are:

Long-term investment (70% of investors)

  • Interest rate – 14%
  • Investment period – from 3-60 months

TrialĀ investing

  • Interest rate – 14%
  • Investment period – up to 21 days

 

nibble review

Currently, only Joymoney Spanish loans are active on the platform. Others are slated to list soon as Nibble expands geographically and grows in terms of users.

Nibble Finance Auto Invest Tool

Luckily Nibble Finance features an auto-invest tool that allows investors to create an investment portfolio and set their preferred portfolio options.

You can customize your portfolio based on parameters such as country, preferred investment amount, interest rates, loan repayment period, among others.

How Much Can You Earn on Nibble Finance?

According to Nibble, investors can expect to earn an average of up to 12% p.a. The return is on par with most other peer-to-peer lending platforms.

The availability of a buyback guarantee helps reduce loan risks for investors, making the return all the more attractive. However, it’s worth noting that individual investor performance varies. The loan type, country, prevailing market conditions, among other factors, are likely to affect your returns.

Who Can Invest in Nibble Finance?

Nibble is open to investors from across the EU plus the U.K. As with most other platforms in the lendtech space, investors must be of legal age. Both individual and institutional investors can invest in the platform.

Investors must also have bank accounts in the European Economic Area. Loans are typically issued to individuals in Europe, CIS countries, and Mexico.

Nibble Finance Pros

  • Low minimum investment amount at just 10 EUR
  • Availability of a buyback guarantee
  • Auto-invest feature
  • Attractive interest rates for investors
  • Easy to use platform for both new and seasoned investors
  • Team with extensive peer-to-peer lending and other financial experience
  • Backed by ITSF, a financial services firm with a long track record

Nibble Finance Cons

  • New platform with a minimal track record
  • Limited variety in loans and loan originators
  • Lack of transparency on the borrowers
  • Not beginner friendly (especially in explaining investment risks)

Nibble Finance Review Verdict

Financial investment platforms must adhere to stringent standards, in my opinion. As such, I do not believe Nibble passes that test. They downplay or don’t clearly explain the risks involved in peer-to-peer lending to potential investors.

Like any investment, peer lending isn’t entirely risk-free. Even with buyback guarantees, investors might still incur losses and capital depletion.

Nibble is still a young platform (less than six months old), as such, it simultaneously offers excellent potential to investors, and risks of being a new entrant in the industry.

Also, that all loans originate from Joymoney, which is owned by IT Smart Finance (ITSF), Nibble’s parent group poses yet another inherent risk.

On the upward side, Nibble is still a young platform with a long runway ahead. We’ll be carefully watching as it grows and develops in the coming months. Hopefully, they’ll be more transparent and expand their investment offerings.

Furthermore, they are part of ITSF, which operates the successful Joymoney brand. That, at the very least, offers glimmers of hope for what to expect.

We believe that Nibble is better suited for seasoned investors. New peer-to-peer investors can also invest as long as they understand the inherent risks involved in the lendtech industry.

Other Crowd Investing Resources

Looking for more options? You might want to read some of our other crowd investing and peer to peer lending reviews. There are many peer to peer lending and investing platforms currently available, and you can diversify your interest income by using several of them simultaneously.

You can consider some other peer to peer companies by checking out our Estate Guru review or our Mintos review. Also check our posts on the best peer 2 peer lending platforms in Europe, and theĀ best real estate crowdfunding platforms in Europe.

Are you already investing in Nibble Finance or in any other peer to peer lending platform? Leave your thoughts and questions about this Nibble Finance review below.

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