Twino Review 2024: My Results after 5 Years
For Peer-to-Peer lending investments, choosing the right platforms is the most important thing you have to do. Twino was the third Peer-to-Peer lending platform I ever invested in, and now over four years later it is time to make a detailed review of the platform & show you the current state of my portfolio on Twino.
In this article, I will tell you what I think are the biggest strengths of the platform, and what is the state of my current portfolio on the platform. I’ll also share how to get started on the platform, and the investment strategy that I am currently using on Twino.
What is Twino?
Twino is a Peer-to-Peer platform based in Latvia and is one of the largest Peer-to-Peer lending platform in Europe, with over 1 billion Euros worth of loans funded since the creation of the platform. They currently have over 20,000 investors. They also reached profitability back in 2018, which is a very good sign for a Peer-to-Peer lending platform.
They currently propose loans from 5 different countries, and of 3 different types (consumer loans, business loans, and invoices financing), meaning that investors can diversify their investments in several countries, and also several loan types.
They also won several awards over the years, including the BankingCheck award in 2019, and they have a very good rating of 4.2 stars over 5 on Trustpilot, meaning it's a platform that is really popular amongst its users.
What Returns Can I Expect From Twino?
On their homepage, Twino advertises loans with over 14% returns, however many loans on the platform have slightly lower returns. My personal return over the past years is currently at 10.94%, as I invest mostly in shorter term loans with lower interest rates (more on that later in the article).
I've also been investing in the platform since November 2015, and the returns have always been consistent. As for all my reviews, you will also find more details about my current returns with Twino at the end of this article.
Is It Safe to Invest on Twino?
As for all investments, investing on Twino comes with a risk. However, there are many things that are included on Twino to make sure that you only take a reduced amount of risk when investing on the platform.
The first thing that will protect your investments on the Twino platform is that they offer a lot of loans which comes with a buyback guarantee. As for other platforms, it means that even if a borrower doesn't pay back a loan, after 60 days of late payments Twino will automatically buy back the loan and return the money in your account. Not all loans come with this guarantee on Twino, but we'll see later how to make sure you only invest in such loans.
Also, they recently announced that they applied with an investment brokerage license in Latvia, which will make the platform one of the first to have such a license in Europe. This is definitely a good step forward for the platform and definitely makes it better than other similar platforms in terms of protection of your money.
They also had a great communication with investors during the COVID-19 crisis in 2020, and handled the situation much better than other platforms as they really showed they cared about their investors. I received consistent and stable returns even during this crisis, and this is definitely a very good sign for the future.
Getting Started on Twino
Getting started with Twino is really easy. First, what you need to do is to open a free account on their website. This usually takes less than 5 minutes, including a step where they will ask you to verify your identity.
Once your account on Twino is created & verified, you can then access the platform and already browse loans. The next step is then to deposit some money on your account in order to start investing. This is also really easy to do, as they provide a bank account with an IBAN that you can use to make the transfer. Note that the first transfer on the account must come from an account on your name, so it has to come from a bank (TransferWise won't work for example).
As for all platforms I have in my portfolio, I immediately tried to withdraw money from the platform as well. This went without any issues, and I had the money in my bank account in one day.
Setting Up the Auto-Invest Function
Let’s now have a look at the auto-invest strategy I used to invest on Twino. I really advise to use it on Twino, as it will allow you to completely automate your investments on the platform and make it a truly passive investment. Here are the settings I am using for my auto-invest function on Twino:
As you can see, I only invest in loans with a yield above 10%, and in short-term loans (less than a year). I also invest only in loans that come with a buyback guarantee, and I invest with the smallest amount possible in each loan (10 Euros). I’m really happy with those settings so far as it produced a decent average yield just a bit below 11%.
Twino Ventures
Since I invested back in 2015, Twino introduced a lot of new features, and the biggest one is called Twino Ventures, that they introduced in 2019. This is a new type of investment offered by Twino, which mainly consists in real estate development projects with yields over 12%. Those loans are all backed by a collateral in the form if a commercial pledge or a mortgage. Even if I didn't invest in any of those projects, it is nice to have the opportunity to diversify into real estate on the same platform.
My Current Results with Twino
Let’s now have a look at my current portfolio on Twino. Note that I started investing on the platform around November 2015.
So far, I managed to get an annual return of 10.94% on my investments, calculated by the XIRR formula on the raw numbers given by the platform. This is a number that completely makes sense, as I mostly invested in loans with yields around 11%. I also received over 1,700 Euros in interests for all this period, so that’s not too bad! Also note that I had no loans in default during that whole time, as I only invested in loans with buyback guarantee.
As for all platforms, I also like to know what the raw data is saying versus the information given by the platform. Let's now use that to have a look at the returns produced by my investment on Twino since I started investing. I found out that my current yield is at 10.71%, which is in line with the loans I invested in.
Overall, I definitely still get very solid results from Twino after these four years of investing on the platform. Of course, I will update this section regularly as I have more results coming from the platform.
Should You Invest in Twino?
After four years of investing on the Twino platform, I can say my experience with the platform has been excellent. I love the fact that it's not only a solid platform in term of returns, but also that they handled the COVID-19 crisis really well and also that they applied for an investment brokerage license. Twino is one of my main P2P lending platform that I want to keep in my portfolio in the future and I will definitely invest more on the platform in the coming months.