Twino Review (2021)

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Reza Machdi-Ghazvini,CAIA
Last updated on 13 July 2021

Our Twino Review

Recommended Review
  • On Twino, investors can earn an average return of 8% to 10% every year.
  • Most loans are secured with either buyback guarantees or payment guarantees.
  • The focus is on short-term consumer loans, which offer investors an interesting risk and return profile.
  • Twino is free of charge for investors.

We would fully recommend Twino to investors. The platform is already one of the largest P2P platforms in Europe, and we expect the platform to continue growing.

€15 Twino Promo Code

We have tested the P2P platform Twino.

If you want to know:

  • whether we would recommend Twino to investors,
  • how Twino offers loans,
  • what kind of experiences investors have had with the platform,
  • how you can automatically invest in P2P loans on Twino,

then you will find all the information you are looking for in this test.

Let's get started.

Table of contents

P2P Plattform Twino review

Introducing Twino as a P2P platform

Twino (SIA TWINO) was founded in Latvia by Armands Broks in 2015. Based on the volume of loans brokered, Twino is one of the top 5 P2P platforms in Europe. Twino is not supervised by the Latvian Financial Market Authority, but has applied for a license with the Latvian Financial Market Authority.

Twino (SIA TWINO) at a glance

  • More than 25,000 registered investors
  • Approximately €750 million worth of loans issued
  • Expected returns of 8% - 10% p.a.
  • Lending in Latvia, Poland, Russia, Kazakhstan and Vietnam (joint venture with Viainvest)
  • Two types of guarantees are offered, the BuyBack Guarantee and the Payment Guarantee
  • Invest from as little as €10 per loan
  • Investors can invest automatically or manually
  • Loans can be sold on the secondary market at short notice
  • Twino offers a tax certificate

Who can invest on Twino?

Companies and individuals can invest on Twino. Individuals must be at least 18 years old and a citizen of a country in the European Economic Area.

How P2P loans are offered on Twino

Infographic for P2P Platform Twino

Twino offers consumer loans, corporate loans and factoring loans. The vast majority of loans are consumer loans.

Twino does not cooperate with third-party providers for the mediation of loans. Loans are granted through companies that are wholly owned by Twino. There is only one exception. Twino cooperates with Viainvest for loan intermediation in Vietnam. The two P2P platforms share the stake (50%) in the loan originator.

Example: Obtaining a loan by a loan originator

Example loan originator on Twino

In Poland, for example, loans are made by the company Net Credit Sp. z o.o. After the subsidiary has granted the loans in Poland, they are offered to you on the platform.

Ratings on Twino

Twino does not publish any ratings for the loans it offers. The loans are categorized by BuyBack (BB) and Payment Guarantee (PG).

Collateralization of loans on Twino

Short-term loans, such as those offered by Twino, are not collateralized.

Twino also arranges real estate loans, which are secured, among other things, by the pledge of the property (and possible land).

Experiences of investors with Twino

Twino has been able to establish itself as a major player in the P2P market, just like the other major Latvian platform Mintos.

The platform focuses on short-term consumer loans, some of which even have a term of only a few days (payday loans or short-term loans).

No major defaults or problems are known. Since the platform indirectly brokers its loans itself and does not work with loan originators (credit brokers), investors have not been surprised by insolvent loan originators in the past.

Twino is not regulated by a financial regulator at present, but has applied for a license from the Latvian Financial Market Authority.

How did Twino perform during the Corona crisis?

The platform performed impressively well during the Corona crisis. It's as if the crisis didn't even happen.

Twino loan volume

After the start of the Corona crisis, Twino was able to further increase the volume of loans brokered. Over 2020, the platform could increase the loan volume from €625 million to approximately €750 million.

When most European P2P platforms surprised their investors with negative news in March 2020, Twino saw only a slight decrease in available loans.

This development can be explained very well by the focus on short-dated consumer loans.

At the beginning of the Corona crisis, many employees across Europe were put on short-time work or partially unemployed. But even in this situation, often borrowers of consumer loans can still service their installments and repayments. Sometimes they only need a small payment break.

The situation was quite different for corporate or refactoring loans (assignment of receivables). The Corona crisis brought small companies, in particular, to their knees in recent months. These types of loans play almost no role on Twino, which explains, among other things, why the platform came through the Corona crisis so well.

From our point of view, Twino has thus clearly stood out as a very exciting platform, especially for conservative investors.

Advantages and disadvantages of Twino

Advantages

  • Twino offers you three forms of investing in P2P loans. You can choose between the auto invest and portfolio builder functions or manually select each loan individually.
  • The expected returns are around 10% per year.
  • Twino focuses on short-term consumer loans, which tend to do well in crises.
  • Twino offers two types of guarantees, the BuyBack Guarantee and the Payment Guarantee.
  • As an investor, you can invest on Twino completely free of charge.
  • Thanks to the secondary market, you have the possibility to get your money at short notice

Disadvantages

  • Twino does not publish ratings for the loans it offers.
  • If Twino goes bankrupt as a platform, you risk the total loss of your investments.

Register as an investor at Twino

You can easily register as an investor on Twino. The entire registration process is digital.

Get a bonus of €15 with our exclusive referral code when you register on Twino. Find out more here.

1. Register as a user on Twino

Twino login

First, visit the website and click on the "Log in" button in the upper right corner. Then click on the link "Register here".

Twino open account

In the next step, you choose whether you want to register as a private person or as a company. Then you enter your first name, last name, phone number, date of birth, e-mail address and password.

Now follow a few personal questions, for example how much you want to invest and where you live. Answer the questions and click on the submit button.

Twino Iverify identity

After that, Twino will ask you to prove your identity. You can identify yourself with your passport or ID card.

You can also skip this step, but without successful identification you will not be able to invest.

2. Activate your email address

Twino verify email address

While clicking through the registration as an investor, Twino has sent you an email enabling you to verify your email address.

Click on the "Visit TWINO" button and your registration is complete.

3. Verify your account

You can easily verify your account by making your first deposit.

Deposits and withdrawals on Twino

Deposits and withdrawals on Twino are managed through a central account.

Deposit money

Twino deposit money

After you have logged in, click on the "Deposit Money" button at the bottom right of the screen.

Twino will then show you how to transfer money to your account. You have to transfer your desired amount to the account as indicated.

Please enter the payment purpose for the transfer exactly as Twino shows it to you. If you do not do this, the amount cannot be assigned to your account and there will be annoying delays.

Withdraw money

If you want to withdraw money, click on the "Withdraw money" button at the top right of the screen after logging in.

Then you enter the amount you want to withdraw and confirm your entry.

Invest in P2P loans on Twino

You can easily invest as an investor on Twino.

Either you invest automatically or manually in loans.

Auto Invest

Twino Auto Invest

With the Auto Invest function you can specify:

  • Investment amount
  • Investment amount per loan (important)
  • Interest rate
  • Term
  • Countries from which the loans should come
  • Loan types

The narrower your criteria, the longer it may take for your investment amount to be invested. Also, criteria that are too narrow can cause the Auto Invest feature to stop investing altogether.

Since diversification across as many P2P loans as possible is a key success factor, we would advise you to invest only €10 per loan.

Twino's strength lies mainly in the mediation of short-term consumer loans (consumer loans). You may therefore want to invest only in loan types that are consumer loans.

What do I do if the Auto Invest does not invest?

Occasionally, investors on Twino complain that the Auto Invest function works slowly or not at all.

If this is also the case for you, you should take a look at which loans are currently available on the platform.

You can find all the available loans by first clicking on "Invest" and then on "Manual Invest".

If you then enter your criteria there and find that no loans are available, you should adjust your settings in Auto Invest.

Twino no loans available

In this specific example, we searched for loans with an interest rate of 20% to 30% with a term of up to 12 months.

Twino indicates to us that there are currently no loans offered with these conditions.

Portfolio Builder

Twino Portfolio Builder

You may immediately notice that the Portfolio Builder and the Auto Invest function are visually very similar.

The main difference between the two functions is how fast they invest.

After you have made your settings, the Portfolio Builder will show you how many loans are expected to be immediately available to invest your money.

The Auto Invest feature, on the other hand, will invest your money gradually into the available loans.

Manual investing

On Twino, you can choose the individual loans you want to invest in.

Even though this is a possible option, we would advise you against it. When investing in P2P loans, you should spread your investments as much as possible.

For example, if you invest €5,000 and limit your investments to €10 per loan, you will have to select 500 loans individually.

Secondary market on Twino

Twino offers a secondary market that allows you to sell your loans relatively quickly.

What returns can investors expect on Twino?

On Twino, you can expect annual returns of between 8% - 10% p.a.

What costs and fees does Twino charge investors?

None, as an investor you do not have to pay any fees or other costs.

Can I automatically invest in P2P loans on Twino?

Yes, Twino offers you two functions for automatic investing. The Auto Invest or Portfolio Builder function.

Can I select individual loans on Twino?

Yes, you can manually choose the loans you want to invest in on Twino.

Risks of investing on Twino

The loans offered on Twino may default. This is not a particular risk from the platform, but you have to expect this risk when lending.

Typically, the default risk of loans can be significantly reduced by investors tending to invest in loans with better ratings.

Twino, however, does not publish ratings. However, since ratings are always related to expected returns, you can assume that the loans with lower interest rates on Twino have a higher credit score.

How reputable is Twino?

Twino can be classified as reputable. The platform has been on the market since 2015 and has been growing continuously ever since.

In our opinion, the platform should be monitored by a financial regulator in a timely manner, which will increase the confidence of professional investors as well. As a result, the platform will benefit from further growth and investors from increased respectability. At present (January 2021), Twino has applied for a license with the Latvian Financial Market Authority.

Is there more information about the brokered loans on Twino?

Yes, Twino offers investors a statistics page where they can find detailed information about the loans.

Does Twino publish its annual report?

Yes, Twino's annual report is published on its website.

How should the two Twino guarantees, BuyBack Guarantee and Payment Guarantee, be assessed?

In the case of loans issued with the PG (Payment Guarantee) rating, Twino steps in if irregularities occur. This practically means that Twino pays the installments and interest for the borrower.

The situation is different with the BB (BuyBack Guarantee) rating. For loans with this rating, Twino will fully compensate the investor should a borrower be 60 days late. Part of the compensation is also the unpaid interest.

If the platform overestimates itself and lends too aggressively, the guarantees are ultimately not worth much.

Any guarantee (or promise) is ultimately dependent on the guarantor. If Twino were to become hopelessly over-indebted in a hypothetical negative scenario, all guarantees would be worth nothing in one fell swoop.

As an investor, you should therefore not blindly trust in these guarantees.

In our guarantee comparison, we have taken a closer look at the two Twino guarantees.

What is the default rate on Twino?

The default rate on Twino are around 5% - 6% p.a., which is a typical value for P2P platforms. Some platforms even have default rates of 10% - 15%.

Are the loans on Twino protected by the deposit insurance?

No, the loans on Twino are not protected by the deposit insurance such as the FDIC insurance.

Taxing income earned by P2P lending on Twino

Twino makes it very easy for its investors to do their tax return.

Prepare your tax return on Twino

Twino find tax report

First, click on "My Investments" in the top menu. In the submenu, click on "Income Statement".

Twino request tax report

After that, you just need to select the year you want and click on the "Download" button.

Result of our Twino Review

Twino is not without reason one of the largest P2P platforms in Europe. The platform is easy to use and offers investors attractive returns of 8% to 10% each year. In our P2P ranking, Twino shares 2nd place with the platforms iuvo, Fellow Finance and PeerBerry.

The P2P platform Twino is not officially supervised yet, but it is realistic to assume that this will change before the end of this year, which will give the platform a further boost in our opinion. Twino's statistics page gives investors detailed information, and the annual report is also publicly viewable.

On Twino, investors can conveniently invest in new loans with the automatic investment feature. Also, the terms are short, so investors do not have to commit for a long time. But a secondary market is also available in case investors need to get their money quickly.

It is not easy for us to find any points that we can criticize about Twino. Accordingly, we would recommend the platform to investors without any restrictions.

We have tested Twino mainly on the criteria of seriousness, offer and user-friendliness. Whether you ultimately agree with our test result, you can only find out for yourself.

The best thing to do is to register now with our exclusive referral code, with which you will receive a starting bonus of €15 when you register.

As soon as you have tested the platform yourself, we would be happy if you share your experiences with us.