Modena Review: My In-Depth Experience with This Estonian P2P Lending Platform
A comprehensive review of Modena's automated P2P lending vaults, regulatory status, and whether this Estonian platform deserves a place in your portfolio
Quick Verdict
Modena offers a compelling automated P2P lending experience with strong regulatory oversight from the Estonian FSA and competitive returns up to 11%. While the platform's small scale and recent financial losses warrant caution, the automated vault system, low default rate of 0.4%, and buyback guarantee make it an interesting addition for diversified P2P portfolios. Best suited for investors who value hands-off management and regulatory compliance, though allocations should remain conservative at 5-10% of total P2P investments.
Try ModenaWhat is Modena?
Modena operates as a P2P lending platform that allows investors to purchase consumer loan claims and Buy Now, Pay Later (BNPL) claims to earn interest payments over time. Unlike many newer platforms in the space, Modena has been operating since 2019, giving it over 5 years of operational history. The company is incorporated in Estonia as Modena Estonia OĆ and operates under proper regulatory oversight.
What immediately caught my attention about this platform is their unique approach to P2P investing through their "Vault" system, which promises to completely automate the investment process. They offer competitive interest rates of up to 11% annually, which is above average for the European P2P lending market. They also focus on investor protection by providing buyback guarantees and operating under Estonian regulatory supervision.
The platform primarily deals with consumer loans and Buy Now, Pay Later claims, which provides a focused investment strategy rather than trying to cover multiple loan types. This specialization can be both a strength and a limitation, which I'll explore further in this review.
Since launching their investment platform (modena.capital), they've built up some solid operational metrics. The platform now serves over 100,000 customers using their broader payment and financing ecosystem. They've financed ā¬3.2M through their investment platform with an impressively low default rate of 0.4%. Currently, they have 621 active platform users, which is relatively small but growing. Across their entire business, they've issued ā¬12.57M in total financing.
What Returns Can You Expect?
Real returns based on my investing experience
Dynamic Vault Performance:
The Dynamic Vault targets returns of up to 8.5% annually with a 30-day liquidity period. This option is suitable for investors wanting flexibility and offers lower returns but faster access to capital.
Fixed-Term Vault Performance:
The Fixed-Term Vault targets returns of up to 11% annually with a 12-month commitment required. This option provides better returns for patient investors and offers compound growth potential with reinvestment.
Market Context: These returns are competitive within the European P2P lending market. The 11% target return is particularly attractive for investors willing to commit funds for a full year, while the 8.5% Dynamic Vault return provides a good balance of yield and liquidity.
Risk-Return Profile: The 0.4% default rate suggests that these returns come with relatively controlled risk, though past performance doesn't guarantee future results. The buyback guarantee provides additional protection, though investors should understand the 35-90 day timeframe.
The Modena Vault System: Automated P2P Investing
One of Modena's most distinctive features is their automated "Vault" investment system. Instead of manually selecting individual loans, Modena automatically invests your funds across a diversified portfolio of consumer loan claims.
Dynamic Vault
Offers up to 8.5% annual returns with a 30-day lock period for funds. This option provides more flexibility for investors who may need quicker access to capital.
Fixed-Term Vault
Provides up to 11% annual returns with a 12-month lock period. This option delivers higher returns in exchange for a longer commitment.
Configurable Payouts
Set what percentage of your monthly earnings gets automatically paid out to your bank account versus being reinvested for compound growth, from 0% to 100%.
The automation extends to the entire investment process - once you deposit funds and configure your settings, the platform handles loan selection, diversification, and even handles the buyback process for defaulted loans without any intervention required from investors.
Is Modena Safe?
Key safety features and regulatory compliance
Estonian FSA Licensed
Modena Estonia OĆ operates as a licensed creditor under supervision of the Estonian Financial Supervisory Authority, providing strong regulatory oversight and investor protection.
Buyback Guarantee
Loans that are 35-90 days late are automatically bought back from investors, protecting against defaults and non-performing loans.
Segregated Accounts
Investor funds are kept in segregated accounts, completely separate from company operational accounts, ensuring your capital is protected.
KYC & GDPR Compliant
Automated identity verification with robust KYC processes and full GDPR compliance with proper data protection and privacy measures.
šļø Regulatory Oversight
Modena Estonia OĆ operates as a licensed creditor under the supervision of the Estonian Financial Supervisory Authority (FSA). This provides significant investor protection compared to unlicensed platforms. Additionally, they operate Modena Payments OĆ as a separate licensed European payment institution, demonstrating their commitment to proper regulatory compliance.
š”ļø Investor Protection Measures
The platform offers several investor protection measures. They provide a buyback guarantee where loans that are 35-90 days late are automatically bought back. Investor funds are kept in segregated accounts, separate from company operational accounts. They maintain GDPR compliance with proper data protection and privacy measures, and use automated identity verification with robust KYC processes.
š Corporate Transparency
The company maintains good transparency with regular financial reporting and clear disclosure of their business model. They explicitly state that they are not a crowdfunding platform, credit intermediary, or investment firm, but rather operate specifically as a licensed creditor selling loan claims to investors.
Getting Started on Modena
Register and Verify
Complete the quick 3-minute registration process and KYC verification with standard documentation. The process is straightforward and efficient.
Deposit Funds
Fund your account via bank transfer with a minimum of just ā¬50. Deposits are processed efficiently without excessive delays.
Configure Your Vault
Choose between Dynamic Vault (8.5%, 30-day lock) or Fixed-Term Vault (11%, 12-month lock) and set your automatic payout percentage from 0-100%.
Start Earning Automatically
Once configured, the platform automatically handles all loan selection, diversification, and management. Receive monthly statements and payouts based on your settings.
Pros & Cons
ā Pros
- āFully licensed by Estonian Financial Supervisory Authority (FSA) providing strong regulatory oversight
- āExceptionally low 0.4% default rate demonstrating effective risk management
- āCompletely automated vault system eliminates need for active portfolio management
- āCompetitive returns up to 11% annually with Fixed-Term Vault
- āFlexible monthly payout configuration from 0-100% for income or compound growth
- āBuyback guarantee on loans 35-90 days late
- āExperienced leadership team with over 70 years combined fintech experience
- āLow ā¬50 minimum investment makes platform accessible to new investors
- āSegregated investor accounts separate from operational funds
- āClear transparency with comprehensive monthly reporting and disclosure
ā Cons
- āSmall user base of only 621 active investors indicates early growth stage
- āGeographic concentration limited to Estonian market only
- āCompany reported financial losses through 2023 (though improving)
- āBuyback period of 35-90 days longer than industry standard of 30 days
- āNo secondary market available limiting liquidity options
My Investment Experience
Using the Fixed-Term Vault with 50% monthly payouts and 50% reinvestment, my experience has been positive so far. The automated systems work as advertised, monthly payments arrive on schedule, and the platform's reporting is clear and comprehensive.
The 0.4% default rate appears accurate based on my portfolio performance, and the buyback guarantee has functioned properly when needed. The Estonian regulatory oversight provides peace of mind that's often missing in this space.
However, I'm maintaining a relatively small allocation (under 5% of my total P2P portfolio) due to the platform's size and some of the concerns I've identified around their recent financial performance and limited scale.
Final Verdict
For investors seeking automated, regulated P2P investing with competitive returns, Modena deserves consideration - just ensure it fits appropriately within your broader investment strategy and risk tolerance. The platform offers a unique combination of regulatory oversight, automation, and competitive yields that make it an interesting addition to a diversified P2P portfolio. Start small with their ā¬50 minimum investment to test the platform and see if it aligns with your investment goals.