Fellow Finance: Europe’s Peer-to-Peer Lender

What is Fellow Finance?

Fellow Finance prides itself in being among the most recognized peer-to-peer lending platforms in Northern Europe. The platform boasts of over 115,000 investors and more than 700,000 borrowers. Founded in 2013, the company has had over 406M EUR invested through it, with its offices in Finland, Sweden, Poland, Germany and Denmark. Moreover, Fellow Finance is an Authorized Payment Institution which is under the regulation of the Finnish Financial Supervisory Authority of Finland.

You will get services for both consumer and business loans on the platform. With each loan, you get a star rating ranging from 1-5. These ratings are based on the evaluation of personal guarantee, credit assessment and other variables that are essential in the scoring mechanism. Different countries with Fellow Finance services offer a variety of options from consumer loans, invoices and business loans. Finland is the only country that offers all the three services while Sweden offers business and consumer loans. Germany, Poland and Denmark offer only consumer loans.

How do you open a Fellow Finance account?

The registration process is simplistic and straightforward. To register, click on the sign-up icon on the website and fill out your name and address. Also, enter a valid email address and complete the KYC process by providing an identification document. However, you can still create an account without having to complete the KYC process. Nevertheless, you will need to complete the process before you begin actual transactions of investing and withdrawing from the account.

What types of investment can you find on Fellow Finance?

The two major investment types in Fellow Finance are:-

  • Consumer loans. These loans are available in all the five countries where Fellow Finance is in operation. The borrower gives a personal guarantee, but there is no collateral on personal loans. You will find clear and detailed information on the platform to help you make a concise decision. This information includes the loan amount, maximum interest rate, borrower geography, and loan duration.
  • Business loans. These are inclusive of both personal guarantees and collateral from the directors. The greatest beneficiaries of the business loans are the SMEs for funding the capital for startups and working funds, among others. The invoice financing contains receivables which are part of the investment to act as collateral. The business loans require the provision of more informative data for loan information and financial data. The loan information includes the company bio, summary description of the project requiring the loan, external credit rating by a third party credit agency and other documents such as annual reports from previous years. Fellow Finance provides financial data from company balance sheets as proof of the company’s financial health.


What is the process of investing in Fellow Finance?

  • Open your account and verify it through your email.
  • Deposit money into your account using Transferwise, bank transfer, CurrencyFair, Revolut, among other methods.
  • You will get confirmation of funds arrival within 1-3 banking days, after which the funds will be available for investment.
  • Once your funds reflect on your account, you will get a confirmation via email.
  • The confirmation will be a go-ahead for you to choose whether to invest in the business or personal loans. The platform comes with an Auto-invest feature known as the Loan Allocator that you can use to select, or you can invest manually.

The Loan Allocator Auto-Invest tool

The auto-invest feature is not only intuitive and innovative but also, it is Fellow Finance’s cutting-edge as it puts the platform far ahead of the competitors in terms of functionality. With the Loan Allocator, you can set a variety of parameters depending on the amount of loan you desire. Moreover, you can place a bid on a particular credit rating or set the minimum interest rates. Furthermore, you can set different loan percentages with their various credit ratings. As a result, you get to diversify loan portfolios.

On the secondary market, the Loan Allocator performs a splendid task in placing bids on loans by using the following criteria:-

  1. It identifies loans with paid instalments.
  2. Locating the overdue loans and figuring out how many numbers of days are remaining.
  3. Checking the discount rate and identifying your most preferred rate before you buy the loan.

How much can you earn as an investor on Fellow Finance?

As an investor on Fellow Finance, you have the advantage of enjoying industry-level profits with annual estimated returns of up to 10%. The Auction system which the platform uses enables borrowers to set the interest rated that they desire and lenders place a bid on the loans with their terms of interest rates they are willing to lend that range from 13% to 55%.

Benefits of Fellow Finance

  • The interest rates ranging from 13% to 55% are high and attractive.
  • There is the availability of the Loan Allocator feature.
  • Verification of ID and money transactions is efficient.
  • It has a direct structure of the investment.
  • Investors and borrowers get full transparency, and the statistics are live.
  • The Finnish FSA regulates the platform; thus, it portrays high-security standards.
  • There is the availability of the secondary market.

Fellow Finance Cons

  • The sellers only get a 1% secondary market fee.
  • It is a high-risk platform.
  • There is no buyback guarantee.


Fellow Finance is a platform that provides investors with the opportunity to grow and diversify their portfolios. The vibrant marketplace and the solid financials that the company prides itself in, make it all the more attractive. The fact that it is listed on the Finland Nasdaq First North stock market is proof for investors to take the risk and build their assets.