Welcome to the first episode of Income Insights, a podcast series aimed at offering a closer look into the world of peer-to-peer lending and the Income platform. In this episode, Denny from Re:Think P2P lending delves into a conversation with Income founder Kimmo, discussing various aspects of the platform, recent changes, challenges, and the future.
The Purpose of Income Insights
The idea behind the Income Insights podcast is to provide a more transparent and direct line of communication between the Income platform and its investor community. As an investor himself, Denny recognizes the complexities and difficulties that can arise behind the scenes in the peer-to-peer lending industry. The goal is to bridge the knowledge gap between the platform and its investors while keeping an eye on current events and future plans.
Income Insights aims to be a recurring podcast, with episodes released monthly. If you find the content interesting and informative, you can subscribe on various streaming platforms or even on Income’s YouTube channel.
Now, let’s dive into the highlights of this first episode with Kimmo, the founder of Income.
Introduction: Kimmo and Podcast Preferences
The conversation kicks off with a bit of background on Kimmo and his personal preference for podcasts. While Kimmo has made guest appearances on podcasts before, this is the first podcast initiated by Income. Kimmo expresses his enjoyment of listening to podcasts, especially while driving or working out. He mentions some of his favorite podcasts, including Joe Rogan’s, particularly the episode with Elon Musk. His playlist also includes podcasts on real estate and fintech, offering valuable insights into his areas of interest.
Discussing the Recent CEO Change
The podcast delves into the recent change in Income’s leadership, with Lavrenti Tsudakov taking over as the new CEO. Kimmo, who had been the CEO and founder since the platform’s inception, explains his decision to step down. He mentions the incredible growth the platform has experienced over the years, reaching around 4,500 active investors and managing over 13 million euros in investments. Despite the success, the demanding nature of running a startup and the desire to spend more time with his family led Kimmo to consider a change.
He discusses key strategic developments on the horizon for Income, including the potential for a regulatory license in 2024, upcoming funding rounds, and new loan originator onboarding. Kimmo expresses the importance of seizing opportunities and providing others with the chance to lead when the timing is right. The decision to pass the CEO role to Lavrenti comes down to the desire to focus on more critical aspects of the business.
Exploring Income’s Team and Structure
Denny takes the opportunity to gain insights into the structure and size of Income’s team. Currently, there are around nine people working in-house, along with outsourced services. Kimmo provides a brief overview of key team members and their roles, such as Lavrenti as CEO, Macjei in charge of LO Due Diligence, compliance officer Hendrik, LO Onboarding manager Jason, Steffi handling marketing and sales, Anastasia as the customer care lead, Roger in finance, and Jüri as the Chief Technology Officer (CTO).
Kimmo also discusses the decision to use external legal and development resources when needed, and the rationale behind such choices.
Loan Originator (LO) Developments
The podcast takes a deep dive into Income’s LO developments, starting with the specific case of Vivus in Mexico. Kimmo addresses the delays and issues faced by Vivus, resulting in outstanding payments of around 1.5 million euros. He explains that the delays mainly stem from complications with bank transfers and documentation, as well as navigating AML and KYC requirements. The platform is actively working to resolve these issues, aiming to finalize the outstanding 500,000 euros.
The conversation underscores the importance of understanding the regulatory environment and AML policies in different jurisdictions, as well as the unpredictability of bank policies and the need for constant communication between platforms and LOs. Kimmo highlights the distinction between issues caused by banks versus regulatory challenges in specific countries.
Solutions for LO Challenges
Addressing ClickCash in Brazil, Kimmo discusses the complexities and the ongoing search for solutions. Given the protracted delays, the proposed solution is to begin paying down the principal amount to investors in tranches. If ClickCash fails to adhere to this payment plan, Income is prepared to bridge the gap and ensure investors receive their due amounts. The decision to adopt this strategy is based on the need to provide investors with a clear schedule and plan, given the lengthy nature of the ClickCash situation.
Balancing Investor Demand and Asset Supply
Denny raises the issue of investor notifications about loan availability, emphasizing the challenge of high investor demand versus a limited number of assets. He suggests establishing a more structured schedule for asset uploads. Kimmo acknowledges the challenge of managing this situation and discusses ongoing efforts to work with LOs to increase the total number of assets listed.
Wrapping Up
The first episode of Income Insights offers a candid and in-depth look at the platform’s inner workings and challenges. It also provides valuable insights into the team, LO developments, and future plans for Income. The open and informative conversation with founder Kimmo sets a promising tone for this podcast series, aimed at keeping investors informed and engaged with the platform.
The Income Insights podcast is set to be a regular feature, so be sure to keep an eye out for future episodes to stay updated on the latest developments, challenges, and successes at Income.
