TrustBuddy market update: Details on the TrustBuddy P2P lending platform in Spain
Stockholm, 2013-01-18 14:18 CET --
Following the postponing of the launch in Germany in 2012, TrustBuddy has been focusing on alternative markets to facilitate rapid growth. One of the key countries targeted for an early P2P platform launch has been Spain, and as previously announced, TrustBuddy has just released a full P2P platform in Spain. The platform framework is identical to TrustBuddy's Scandinavian Model, but with local adaptations, and the Spanish flag is already visible on the mail TrustBuddy websites.
One of the key elements in the continuously successful TrustBuddy P2P platform is the way new markets are approached and catered for. Instead of a massive launch through commercials and campaigns, TrustBuddy’s modern and sought-after product virtually sells itself in each new market it has been released. The cautious initial growth rate TrustBuddy has previously experienced in its current markets is viewed by the company as an excellent approach; giving TrustBuddy ample time to assess the market, repayment rate, debt collection effectiveness and the loss figures over time, whilst saving the company the need for huge marketing investments. The soft-launch method has created an environment where growth in volume is easy to handle, where problems can be well catered for by a steadily growing staff, and where the rate of losses can be maintained at a low level (currently, the loss figures for the whole TrustBuddy portfolio is around 1%, whilst generating earnings of 12%).
With the perceived financial state of the company’s target audience, TrustBuddy is planning for low activity levels in the first two quarters of the Spanish operations, before increasing marketing efforts and boosting the products in accordance with the Scandinavian model.
The Spanish market statistics shows a population of close to 50 million people, a high rate of unemployment, a restrictive banking system and a high likelihood of success for an online short-term financing tool such as TrustBuddy is offering, as well as for those products TrustBuddy aim to launch in the near future. Despite being one of the countries in Europe officially in recession, opportunities in Spain for companies such as TrustBuddy are still excellent. As Spanish is one of the three most spoken languages in the world, a Spanish platform can also facilitate and simplify the future launch of services in other Spanish speaking markets. The Spanish prospective target audience for TrustBuddy’s main P2P product is estimated at slightly less than 15 million people, however, TrustBuddy’s assessment is that its target audience increases from 2.4 million users to around 10 million users. Spain is highly developed in terms of certified mobile/online identification systems and credit worthiness control, and implementation of TrustBuddy’s credit check routines has be done without major investments.
TrustBuddy established its Spanish presence already in the fall of 2012, with a local HQ in Barcelona. It has for the past six months unofficially been researching the Spanish market, before implementing local adaptations of the P2P platform and testing thoroughly prior to launching actual products.
It is estimated that the Barcelona office will have 3 or more employees at the end of Q1/2013, and between 5 and 15 employees at the end of the year.
TrustBuddy evaluates the market potential in Spain as excellent. A successful launch in Spain will more than triple the total market potential for TrustBuddy. No figures for profits derived from Spain is included in the current TrustBuddy Financial Forecasts, which will be update with projections for the Spanish market once the growth pattern is predictable.
As previously stated, TrustBuddy is constantly working with a series of new launches, and will be reporting on these through separate market updates.
For additional information, please contact:
Jens Glasø, CEO, TrustBuddy International AB (publ)
+47 40 40 47 50, firstname.lastname@example.org
About TrustBuddy International AB (publ)
TrustBuddy International AB (publ) is one of the first in the world to focus on arranging loans and capital provision between buddies in Scandinavia in an organised manner. The company is listed at NASDAQ OMX First North in Stockholm. Mangold Fondkommission AB is TrustBuddy International AB (publ):s Certified Adviser and market maker, contact number: +46 8-503 015 50.