What is SAVY?
It is a virtual lending platform based on the peer-to-peer online lending model that emerged in the United Kingdom more than 15 years ago. It works like this: internet users lend their money to other users through a technology platform as an intermediary. The latter not only brings lenders and borrowers together, but also reduces risks for both parties, automates, and thus simplifies part of the process.
How does SAVY work?
SAVY is based on a technology platform where registered lenders and those who want to borrow can find each other more easily. Each consumer wishing to obtain a loan is checked in accordance with the regulations on responsible lending approved by the Bank of Lithuania: credit history, ratio of income to financial liabilities, etc. are analyzed. Lenders (investors) registered on the platform can provide loans to users who have passed the check. SAVY does not directly conduct any monetary transactions, only performs risk assessments, and moderates the borrowing process that takes place directly between consumers. The money is transferred from the lender to the borrower via the “Paysera” system integrated in the platform.
Who administers SAVY?
The P2P lending platform SAVY is administered by UAB “Bendras finansavimas”.
What is the advantage of SAVY over traditional borrowing methods?
The system allows natural and juridical persons to borrow and lend each other directly without using services of traditional financial institutions (banks, credit unions).
Who supervises SAVY?
Activity of SAVY is supervised by Bank of Lithuania. SAVY operator UAB “Bendras finansavimas” is included in the public list of consumer credit providers, also the operator is included in the public list of peer-to-peer lending and crowdfunding platform operators.
On what basis SAVY provides services?
The company administering SAVY, UAB “Bendras finansavimas”, does not accept cash itself or issue loans, and transfers between users are not even made through the company’s accounts. In other words, the lending process itself takes place between two entities, the relationship between which is established by the Civil Code of the Republic of Lithuania and other legal acts. SAVY is responsible for the smooth operation of the technology platform. All transfers between persons on the SAVY platform are made through the “Paysera” electronic payment system. In 2012 this company has received an electronic money license issued by the Bank of Lithuania, which gives the right to provide electronic money payment services in Lithuania and other EU countries.
What security guarantees do SAVY users have?
Although the lending process itself takes place directly between borrowers and those wishing to lend, SAVY has introduced various safeguards in it, which are based on the Bank of Lithuania’s regulations on responsible lending. We do this primarily because SAVY’s success depends on consumer confidence in the platform. Here is a specific example: the system evaluates the credit history of each person wishing to obtain a loan and provides the opportunity to borrow on the platform only to those persons who meet the criteria set by the Bank of Lithuania. SAVY protects the interests not only of investors but also of borrowers. For example, a person who has received a loan through the platform has the right to repay it at any time without penalty. If the borrower fails to comply with the obligation to repay the loan within the term specified in the agreement, default interest shall be applied, which shall comply with the rate recommended by the Bank of Lithuania. If the loan is not repaid on time, SAVY also takes over the debt collection burden and administers the process.
