We would like to give you an update on TWINO’s activities during the global turmoil caused by COVID-19 outbreak and what has changed since our previous email last Friday, which you can read on our Blog. Despite the instability in the financial markets, TWINO operations have been adjusted to the current market situation and we are fully capable to ensure business continuity. Our business model structure is built around online operations; hence we are not required to restructure our company. Our teams throughout the world are serving you to secure your investments and deliver the highest level of customer support!

TWINO team has already taken proactive steps during the first signs of virus outbreak and carefully revised multiple scenarios. As predicted, the demand on financial resources is increasing and there are no signs of decline. Our risk management team has formulated a plan to minimize the borrower credit risk by limiting loan issuance to new clients. The adjusted loan issuance policy will address the potential risk of increasing bad rates worldwide, hence securing your investment and focusing mostly on the repeated customers with high credit scores. At the same time, the marketing team is optimizing an increased traffic on our online lending websites.

We strongly believe that the peer-to-peer lending industry’s investment proposal is as attractive as ever as we are offering a steady, fixed and double-digit return. At the same time, we see that the stock market has reached new volatility records making it very unpredictable in the shorter-time horizon. It is very difficult, if not impossible to perfectly time, when the bear market will end.

We can assure you that we will maintain the highest level of transparency during these times. Therefore, we will openly share the steps that TWINO is undertaking to protect your investments. Here is a list of activities that we are doing in the countries that we operate and also a quick update from our Country Managers:

Latvia

  • Adapted debt collection policy by implementing new restructuring options to borrowers;
  • Workforce resources redirected to maximize debt collection efforts;
  • Issuance and credit limits have been adjusted even more in order to serve high-quality customers;
  • Ongoing monitoring and close cooperation with SME credited companies to ensure all liabilities have been covered accordingly.

Country manager of Latvia, Sanita Zitmane: Our strict evaluation and scoring criteria for SME lending through Moneza Business have allowed us to build a portfolio of stable, well-managed businesses that will weather the coming 2-3 months successfully.

Russia

  • Developed supporting programs to its borrowers aimed to keep their financial position stable;
  • Robust restructuring options are being offered as well as discounts on terms extensions are being used;
  • Special COVID-19 support program developed for affected Borrowers.

Country Manager of Russia, Ashot Torosjan: TWINO Russia as online lending market leader and industry role model have taken immediate steps to eliminate potential risks from COVID-19 crises by adjusting our offering to the current environment to ensure that borrower risk assessment is even more tighter. We have launched different support programs to our borrowers, for example special offers to those who will be directly impacted by Covid-19 and many more. Despite market turbulence we expect increased demand from our borrowers in upcoming months, which can be seen already this week.”

Kazakhstan

  • Improved extension offering to borrowers that are automatically evaluated for each case specifically;
  • Larger focus on existing customers compared to new; hence more tighter credit scoring rules that will result in lower borrower default rates;
  • Tailored communication messages for specific customer segments.

Country Manager of Kazakhstan, Yekaterina Kovtun: “We are closely monitoring the new loan issuance and customer acquisition to ensure our portfolio quality and performance is stable during the emergency situation. Our main focus during this crisis will be serving our repeat customer segment and ensuring stable customer care and debt collection operations”.

Poland

  • Adjusting the marketing and communications offer by considering the need to ensure the liquidity of households that are suffering temporary, negative effects of the epidemic, such as payment holdup or delayed salary;
  • Updated borrower credit scoring models by increasing the focus on the creditworthiness taken into account economic and social impact of the COVID-19;
  • Enabling the loan application, its justification and documentation collection completely electronically. Customer care is committed to reply without delay, considering the applicant’s current and foreseeable economic circumstances.

Country Manager of Poland, Izabela Sienkiewicz: We have taken steps to help those in need as NetCredit Poland (TWINO’s Polish entity) allows us to restructure loan repayments by offering short-term discounts or payment schedule extensions. Furthermore, we see an increase in loan applications, thus we prioritise the higher quality customers. We are constantly monitoring the Polish market situation and based on that adjusting our communication and marketing strategies.

Group Management

TWINO Group CEO Anastasija Oleinika: “We believe that after a global recession rapid growth will follow. Worldwide economic stimulus activities will allow the economy to recover during the second part of the year. We are well prepared by adjusting our product, risk assessment policy and debt collection principles. This time is different from the last recession, there wasn’t enough attention paid to people who found themselves in need; however, this time a wide range of support programs for employees are being implemented and we don’t expect our borrowers to go into deep indebtedness.”

TWINO Investment platform Lead Roberts Lasovskis:  We have increased investor interest rates to 12% and 14% p.a. for Polish and Russian consumer loans, respectively, to provide liquidity for the borrowers in need. Our estimate is that during times of uncertainty demand for consumer loans will increase, and we already see a trend of that in Poland and Russia. There is a 30% increase in loan applications for Poland and these customers have on higher credit rating than our average customer.

What matters now is your security and do not hesitate to get in touch with us, if any questions arise!

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Roberts Lasovskis

Investment Platform Lead

Roberts is responsible for leading the growth, strategic development and innovation pipeline of TWINO P2P investment platform. Prior becoming the platform lead, Roberts worked in TWINO as Investor Adviser, closely communicating with our investors and working on strategic development.

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