Iceland
We have invested in Iceland to serve a large market that is untapped by competitors
Iceland, with its enchanting capital Reykjavík, is a fascinating country that impresses with both its breathtaking nature and its economic stability. With a population of around 374,125 people, the country offers a unique quality of life and a robust economy. The head of government, Katrín Jakobsdóttir, leads the country with stable political leadership.
Iceland has a strong economic performance, which is also reflected in the GDP per capita of 59,965 US dollars. The country has a solid credit rating of A from S&P, indicating its financial stability and credibility. In addition, Iceland has an impressive MSCI ESG rating of AA, underlining its exemplary sustainability and environmental performance.
Icelanders (Eurozone) benefit from an average net monthly income of 3,000 euros (2.2k euros), reflecting the country's generally high wage levels and economic dynamism. At the same time, it is worth noting that per capita debt in Iceland is comparatively moderate at USD 14,000 (EUR 29k). This is partly due to the country's high net income and solid economic structure.
A special natural beauty that Iceland has to offer are the fascinating northern polar lights. On the country's clear and dark nights, visitors can marvel at this breathtaking phenomenon, which attracts numerous tourists from all over the world every year. Note: Northern Lights can only be seen through the camera lens and the green color cannot be seen with the naked eye.
Overall, Iceland is a country with a stable economy, a rich culture and unique natural beauty. Icelanders can be proud of their high quality of life and successful economy, while at the same time striving to incorporate sustainability and environmental protection into their decisions and actions.
- Founded in 2009
- Active in three countries
- Over 130,000 registered customers
- Head office in Prague
- Controlled by the Icelandic supervisory authority
Ondřej Šmakal
Dealing with payment delays
The handling of late payments varies depending on the platform. Some platforms only use in-house solutions and others use external service providers. Below is an example of in-house receivables management in Iceland with the following process structure:
- In-house debt management for initial steps in the event of late payment
- Working with standardized reminder management
- After default, investor recovers 100% of outstanding interest payments and outstanding principal
Portfolio in Island
15%
interest rates for newly issued loans (static across all risk classes)
15.635ISK
average loan amount
0,1
years average remaining term
1,86%
average failure rate
15%
annualized return - defaults are reimbursed by the platform at 100% including lost interest
Regulation in Iceland
The granting of consumer credit in Iceland is regulated by the Consumer Credit Act 33/2013 and the Consumer Agency (Neytendastofa) to ensure fair and responsible lending practices in the country. The Act empowers the Consumer Agency to take action against parties who violate the provisions of the Act. Section 29 of the Consumer Credit Act provides that lenders are required to register with the Consumer Agency, which is authorized to reject the lender's application.
Lenders must request access to databases containing the applicant's financial history in order to accurately assess the applicant's creditworthiness and ability to repay. Access is granted by private companies.
The Central Bank monitors that the credit originator's activities comply with the Act on Measures to Combat Money Laundering and Terrorist Financing and the rules and regulations issued on the basis of this Act.
The Icelandic Debt Collection Act regulates debt collection practices and emphasizes the need for ethical, respectful and non-coercive methods when seeking debt repayment from consumers.
In the event of default, creditors in Iceland are obliged to provide borrowers with clear and comprehensive information about the debt, repayment options and the consequences of non-payment.
Interest rate caps are in place to prevent excessive and predatory lending practices and to protect consumers from high-interest loans that could lead to financial instability.