RoboCash Review – My Results After 5 Months
This is my unbiased RoboCash review after 5 months of investing on the platform. Let’s see what returns I got and if the platform right for you!
What Is RoboCash?
RoboCash is a Latvian peer-to-peer lending platform that operates under Robocash Group. The Robocash Group originated in Russia in 2013 and became active in the field of consumer lending and marketplace funding. The main products of Robocash Group are short-term loans and instalment loans provided both online and offline.
Today the group comprises 7 companies with more than 1,350 employees, out of which one of them is the RoboCash platform that is active in Europe and which we’ll be discussing in more detail in this post.
Robocash Review: All RoboCash Group Branches
In total, the Robocash Group provides financial services in 8 countries in Europe and Asia.
Is Robocash Profitable?
The Robocash Group has been profitable throughout 2015, 2016, 2017 and 2018. In 2019, it’s expected to more than double its net profits compared to last year.
Robocash Review: RoboCash Group Financials, Issued Loans, Equity, Total Assets and Net Profit
The European Robocash platform was funded in February 2017 and currently has over 5,850 investors on the platform, who invested €6,2 million cumulatively. Altogether, the invested funds allowed to finance 830,000 loans in the amount of €72 million.
What Loans Does RoboCash Offer?
Currently, RoboCash offers only short term PayDal loans that yield 12% for the investor. That’s right – all loans on the platform have a term time of 30 days and yield 12%.
All of the loans come from lending companies in Spain, Russia, Philippines and Kazakhstan and all of the loans have a buyback guarantee – this means that Robocash assumes all the risk incase of a defaulting loan.
All loans on Robocash have a buyback guarantee. This means that if a borrower doesn’t make his payment, Robocash will give you your money back including interest earned for the time you held the loan.
This means that you won’t loose money on Robocash as long as they operate as a profitale business. (If they go bankrupt, it will be another story. However bankruptcy is highly unlikely given that their estimated net profits are 31 million for 2019.)
How can they afford to do this? At first glance it might seem suspicious that Robocash offers a buyback guarantee on all their loans, given that the average default rate on their platform is 12-14,5%. However, the lending companies charge an outrageous APR for the borrowers who wish to borrow money through them. This can sometimes be 30% APR, 50% APR, or even higher in some cases.
And it doesn’t matter what APR the borrower is being asked for: you as an investor still get to take home your 12% yield. So, in effect RoboCash and the lending companies take a big fat profit from all the loans, which is why they can afford to give the investors a buyback guarantee in the case of defaulting loans.
How To Create Your Auto Invest Strategy
Once you have signed up to RoboCash and completed your verification process, you’re ready to start investing on the platform.
You can set up multiple investment portfolios, but in reality you only need one: Like I mentioned above, all the loans listed on RoboCash are 30 days in length an yield 12%.
To begin investing:
- Choose a name for your portfolio
- Set the minimum and maximum investment to one loan (I recommend max 0,5-1% of your portfolio per loan).
- Set interest rate to 12%
- Set period of repayment range (1-30 days)
- Select your investment strategy: what will happen to your principal and interest after the loan matures?
You can select between 1) Balance 2) Payout 3) Reinvest full amount or 4) Reinvest principal amount
Option 3 is definitely the most interesting one. If you wanted to, you could have Robocash directly transfer you your money to your bank account after your loans mature.
I can definitely see this being a good option for investors with a big portfolio on RoboCash, who might want to use some of their accrued interest to live off of.
Personally, I’ve set my investment strategy as “reinvest full amount”, because it maximises my yield with zero effort. You’ll also want to make sure that you’ve ticket “auto-deposit” – this will make sure that any of your incoming funds are transferred directly to your portfolio.
Here’s a screenshot of my current investment settings on RoboCash:
Robocash Review: My current RoboCash investment settings
RoboCash Review: My Results After 5 Months
I’ve been investing with RoboCash for just over 5 months and so far I’ve been really happy with what I’m seeing. I must admit that my initial impression of the platform wasn’t too high: on the first look, it comes across as a bit shady looking, especially compared to other P2P platforms like Mintos.
However, I’m glad that I didn’t let my first impression get the best of me. It’s been very pleasant and easy investing on the platform, and most importantly: the platform does gives you what it promises: 12% returns.
Here’s a screenshot of my current portfolio:
Robocash Review: Screenshot of my account
I started off by investing €1,000 into my account in March to see how quickly it would grow. 2 months later, I had received €20 in interest, which works out to be exactly 12% per year.
I added +€200 to my account in June, and a further +€300 in the middle of August (you can track all of my deposits here if you’re interested!). So far, after about 5 months the earned interest and accrued interest amount to €61.7, which is exactly 12% XIRR of the amounts invested.
Like you can see from my screenshot above, a big percentage of my loans are overdue (typically 30-45%). This seems to be happening to other investors on the platform too, so I’m not too worried about that. The maximum length that the loans have been late has been about 1 month, which is fine. So far, no loans have defaulted or gone into bad debt.
I also tested withdrawing money from my Robo.Cash account and was able to do so with ease. I transferred €50 from my account and received the money back into my Estonian account without any complications 2 days after. There were also no fees whatsoever, which was fantastic.
To keep better track of my portfolio growth, here is a quick summary of how my portfolio has grown over the past few months:
These figures don’t include the late/overdue interests!
April 1st: €1,001.62
May 1st: €1,009.09 (+€7.47 / 8,9%)
June 1st: €1,020.17 (+€11.08 / 13,2%)
July 1st: € 1,229.31 (+€9.14 / 10.97%)
August 1st: € 1,242.8 (+€13.53 / 13.2%)
August 26th/ Current: €1,550.91 (+€ 8.63 / ~10%)
If you want to follow my journey to financial freedom more closely, you can check out my monthly portfolio reports. There, I go into more detail about how much income I make from P2P platforms and give you the latest updates on my returns.
Investing with RoboCash has been very easy. The platform doesn’t require any hands-on work and the returns are stable and predictable. I haven’t seen any cash drag either and my balance is usually always re-invested in a couple of hours. Personally, I like it a lot!
If you’re looking for a hands-off investment strategy that yields you 12% annually, Robocash might be the right choice for you.
While I highly recommend using RoboCash, especially if you want a hands-off short term investment platform that yields you a predictable amount every month, there are also other options out there.
You can head over to my portfolio and see what other platforms I’ve been using and what returns I get from them.
Thank you for reading this RoboCash review. I hope you found it useful and that I gave you some new ideas to use in your strategy. Please feel free to let me know more about your strategy in the comments below!