In the ever-evolving realm of peer-to-peer lending, few companies have made as significant a mark as Hive5. To get an insider’s perspective on this industry giant and its future prospects, I recently had the privilege of interviewing Hive5 CEO Ričardas Vandzinskas. Ričardas was generous enough to provide a wealth of information about the company, its strategies, and future goals.

Hive5’s Journey to Profitability

Ričardas began by emphasizing the company’s milestone: Hive5‘s subsidiary, Ekspres Pozyczka, reached break-even-point and started earning a profit in January 2023. Hive5’s commitment to transparency shone through as he noted their intention to publish audited financial statements for Q1 of 2023 by the end of May.

Hive5’s Corporate Structure and Business Strategies

In the spirit of clarity, Ričardas elucidated the corporate structure of Hive5. Alongside his co-founder, Andrius Rupšys, Ričardas is one of the ultimate beneficiaries of the Hive Finance Group, owning the mother company and subsidiaries Ekspres Pozyczka and Hive5.

He further explained Hive Finance Group’s acquisition of Ekspres Pozyczka. The company, a classical license holder supervised by the Polish FSA’s consumer microlending organisation, was bought over, rebuilt, and fitted with a new crediting system.

Ričardas expressed pride in Ekspres Pozyczka’s revolutionary AI-based decision-making engine, which has allowed the company to manage a default below 6% of its entire portfolio—lower than other loan originators by around 50%.

Business Expansion and Licenses

A key point in our discussion centered around Ekspres Pozyczka’s successful acquisition of a MIP (Small Payment Institution) licence under KNF. Ričardas also spoke about the company’s expansion plans into the Romanian market, confident in their business model’s success.

Addressing the Higher Investment Returns

Ričardas directly addressed the issue of Hive5 offering higher investment returns. He was adamant in stating that this didn’t imply a higher risk, but was a business strategy to differentiate themselves from competitors and lower costs. With an innovative scoring system and automated operational processes, they’ve managed to offer attractive returns to investors without compromising on risk.

The Powerhouse Team Behind Hive5

Pride was evident as Ričardas spoke about the co-founders and the team behind Hive5. With a combined extensive background in multinational finance, investments management, corporate governance, and technological innovation, Ričardas and Andrius bring valuable expertise to the table. Ričardas also highlighted the work ethic and reputation needed for their roles, further strengthening their credibility.

Investor Protection and Opportunities at Hive5

Highlighting the measures in place to protect investors’ money, Ričardas talked about the buyback obligation and collateral-backed business loans. He also touched upon their efforts to combat cash drag and their plans to apply for an ECSP crowdfunding licence to expand their operations and investment opportunities.

We really enjoyed chatting to Ričardas and are looking very much forward to seeing where HIVE5 go and take the world of P2P lending in the coming months and years.

If you’re interested in checking out HIVE5 check them out here!

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