TrustBuddy market update: Details on the TrustBuddy P2P lending platform in Spain
1/18/2013 8:18 AM EST
TrustBuddy International AB
Company Announcement
TrustBuddy market update: Details on the TrustBuddy P2P lending platform in
Spain
Stockholm, 2013-01-18 14:18 CET (GLOBE NEWSWIRE) -- 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,
http://trustbuddy.com/
http://trustbuddyinternational.com/
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.