Last updated on 27 May 2021 by Reza
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Robocash is one of the medium-sized European P2P platforms. The platform has been on the market since 2017 and has grown steadily since then. Since its inception, the platform has brokered €200 million in loans.
Robocash follows a similar philosophy as Bondora. Investors should be able to invest in P2P loans with attractive returns as conveniently as possible. Investors who are satisfied with Bondora are also likely to like Robocash as a platform.
Introducing Robocash as a P2P platform
Robocash (Robocash d.o.o.) was founded in Croatia in 2017. The platform is part of Robocash Group, which brokers loans in 8 European and Asian countries. Robocash is not supervised by a financial regulator.
Robocash d.o.o. at a glance
- More than 10,000 investors registered
- Loans worth more than €200 million brokered
- Loans available from Spain, Singapore, Latvia, Kazakhstan and Vietnam
- Investors can only invest automatically
- Average return is about 12% p.a.
- You can invest in P2P loans from as little as €10
- A secondary market is not offered
- Robocash does not offer a tax certificate (alternatively a tax report is offered)
Who can invest on Robocash?
Individuals can invest on Robocash if they are at least 18 years old, have a bank account in the EU and are Swiss or EU nationals.
Companies can also invest on the platform and must provide the following information when registering: Certificate of incorporation, a credential of representative and an identity document of the representative.
How P2P loans are offered on Robocash
Loans are offered on the platform by loan originators (loan brokers).
Like the platform, the loan originators are subsidiaries of Robocash Group. The loan originators focus on short-term loans. After one of the loan originators has granted a loan, it is subsequently offered on the platform.
Example: Obtaining a loan by a loan initiator
In Vietnam, loans are granted by the loan originator Robocash Vietnam Co. Ltd.
After a loan has been granted, it is offered on Robocash. This means that the platform itself does not arrange loans directly, but through the subsidiaries of the Robocash Group.
Ratings on Robocash
How Robocash awards ratings to loans is not shown on the platform.
Collateralization of loans on Robocash
The platform mainly brokers short-term consumer loans that are unsecured.
Robocash is a young platform based in Croatia. The founder of the platform, Sergey Sedov, is well known as an entrepreneur and is driving growth.
The platform itself is integrated into the Robocash Group, which has been around since 2013. The group is operating profitably and has reported net income of about $16 million in 2019.
Similar to viaInvest, the platform is backed by a very stable company with a well-known entrepreneur, which has helped the platform grow from the beginning.
There have been no major problems or loan defaults with the platform since its inception. In the beginning, average returns of 14% p.a. were still advertised, which attracted a lot of investors. The high demand led the yields to drop to 12% p.a.
Robocash is not supervised by any financial regulator at present (January 2021).
How did Robocash perform during the Corona crisis?
Unfortunately, the platform does not share all statistics about its offered loans, so it is not easy to make a clear statement.
However, based on the information shared on the blog and the focus on very short-term loans, you can assume that the platform came through the crisis well to very well.
As with almost all other P2P platforms, the volume of loans brokered initially declined and investors began to withdraw money. However, the turnaround came in May when loan volumes and also investors returned.
We have observed that all platforms focusing on short-dated loans have remained more or less unaffected by the Corona crisis.
This can be explained by the short-term nature of the loans, some of which run for only 2 to 3 weeks and are issued with low loan amounts. Borrowers can therefore still service their loans even in difficult times.
Advantages and disadvantages of Robocash
- The biggest advantage of Robocash is that you can invest in P2P loans very conveniently. The platform follows a similar concept as Bondora.
- The expected average return of 12% p.a. is high compared to other platforms.
- With Vietnam, Singapore and Kazakhstan, countries are offered that many other platforms don't.
- The focus on short-term loans has advantages, especially in difficult market phases.
- For you as an investor, Robocash is completely free of charge.
- The platform does not inform its investors about the ratings of the available loans.
- There is no secondary market, but most loans have very short terms.
- Loan originators offer the loans with buyback guarantees. The value of these guarantees depends on how solvent the loan originator is. If a loan originator goes bankrupt, in the worst-case scenario, it may not be able to meet all the guarantees. Buyback guarantees suggest a false sense of security.
- If the platform goes bankrupt, this can lead to the total loss of your investments.
Register as an investor at Robocash
Get a bonus with our exclusive referral code when you register on Robocash. You can read more about it here.
1. Register as a user on Robocash
The registration starts with your visit to the website. You click on the "Person" button in the top right menu, then a window opens where you click on "Sign up".
After that you have to fill in some personal data. Enter your first name, last name, e-mail address and phone number. Make sure that your phone number is correct.
And don't forget to enter a referral code to get a 1% cashback bonus from Robocash.
After that you can choose whether you want to register as an individual or company. You will need to provide your personal identification number (ID card or passport) and the address of your residence.
You also need to provide some information about what you want to use the account for and the source of your planned investments.
2. Activate your e-mail address
Robocash will send you an email to confirm your email address. Press the "CONFIRM E-MAIL" button and your email address is confirmed.
3. Verify your bank account and yourself
Finally, you only need to verify yourself and your account.
At the top of the screen, Robocash shows you that you still need to verify your identity. After clicking on the link, you need to upload a picture or scan of your ID or passport.
You verify your account by depositing money into your Robocash account.
Deposits and withdrawals to Robocash
You can easily deposit to or withdraw money from your Robocash account through a central Robocash account.
After you have logged in, click on the button "DEPOSIT MONEY". Here you will find all the details to make a transfer.
When you make a transfer, you must specify the purpose of the transfer as shown in the "Payment purpose" section of Robocash.
You can withdraw money just as easily as you can deposit it. After you have logged in, click on the button "WITHDRAW MONEY" at the bottom right of the overview. Then you need to specify the amount you want to withdraw.
Invest in P2P loans on Robocash
The philosophy of the platform is that you can invest in P2P loans as conveniently as possible. Therefore, the platform offers you only an automatic investment function.
After you have logged in to Robocash, click on "Invest" in the menu at the top.
After that you can create a portfolio and define how you want to invest.
You can make the following settings, among others.
- Minimum and maximum investment per loan
- Interest rate
- Period of repayment range
- Investment strategy
- Loan originator
The "Investment strategy" setting stands out especially. You can choose how you want to be reinvested. For example, you can specify that interest from a certain amount is paid out to your account and only the amount originally deposited is reinvested.
Secondary market on Robocash
There is no secondary market offered. As most loans have short terms, a secondary market does not seem necessary to us either.
What returns can investors expect on Robocash?
At present, the platform advertises an average return of 12% p.a. (January 2021).
What costs and fees does Robocash charge investors?
For investors, Robocash is completely free of charge.
Can you automatically invest in P2P loans on Robocash?
Yes, you can only invest in loans automatically.
Can you select individual loans on Robocash?
No, you cannot select the loans you want to invest in individually.
Risk of investing on Robocash
The (alternative) asset class P2P lending is associated with risks. Borrowers can become insolvent, which leads to default of the loans (loan default risk).
Investors can reduce default risk by focussing on loans with higher ratings (better credit scores). On Robocash, you cannot select loans by ratings, but ratings and loan rates are closely related.
It is true that the better the credit rating, the lower the expected interest rates.
Conservative investors should tend to invest in loans with low yields on Robocash. Risk-conscious investors, on the other hand, should do just the opposite.
How reputable is Robocash?
The platform is still very young, yet it has been able to broker an impressive volume of loans in a relatively short period of time. Robocash has benefited from its affiliation with the Robocash Group.
The platform and its investors would benefit from being regulated by a financial regulator.
How does the buyback guarantee work on Robocash?
The buyback guarantee has a practical benefit for investors. Loans are repurchased after just 30 days on the platform. Investors do not have to take care of the loans after that, the loan originators take care of the further processing.
The value of a guarantee depends on the creditworthiness and trustworthiness of the guarantor. For example, if a loan originator goes bankrupt, all guarantees might not be held in whole or in part.
You shouldn't rely on buyback guarantees.
What is the default rate on Robocash?
The platform does not publish default rates on brokered loans. Comparable platforms have default rates between 5% - 10%, which we would also assume for Robocash.
Are the loans on Robocash protected by the deposit insurance?
No, loans on the platform are not protected by deposit insurance such as the FDIC insurance.
Paying taxes on income earned by P2P lending on Robocash
Robocash does not offer a tax statement to its investors, but investors can download a tax report.
Prepare tax report on Robocash
To prepare your tax return, first log in and click on "Statement" in the menu.
Then you select the start and end date (typically from January 1 to December 31 of a year).
Start investing on Robocash now
If you like Robocash at first sight, you should register now as an investor on Robocash and test the platform.
When you sign up, be sure to use our exclusive Robocash promo code to receive a 1% cashback bonus from Robocash on your invested capital.