Update on Dozens' fixed-interest bonds and protection

Not surprising at all, the lack of informed communication is the issue, not the delay.

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Absolutely. I was thinking really that the two are linked - dozens maybe set unrealistic targets, then didn’t really realise or communicate clearly how much they have had to change.

Bottom line is that dozens is still a beta product, so this kind of misalignment between user expectation and delivery is exactly what you’d expect. Cf. every other fintech startup…

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So do we have a timeframe at all? Or is it still “wait and see”? From what I understood from AC, Dozens was waiting for the “OK” from the Regulator following the crowdfund, that was how many months ago now?

I think the issue is, people invested with a promise of a bond issuance that was much larger than the original, those who joined before the crowdfund had already had a go at the bonds bidding (which was successful from Dozens own words) - it just feels like you drew people in and then forgot about it.

I appreciate that there may be a lot of other things working in the background, but maybe too much was taken on at the same time? Why not try and get the product that is your USP and that no one else really has, which would last you a year - and then you have a year to develop other things?

Its all fine and good having bill splitting, instant notifications and the like, but that isn’t a USP anymore, if anything that is the benchmark.

Hopefully now we are into September we can get a proper idea of how long it will be until the bonds are re-announced.

Hi, just thought I’d check in for any progress on the 5% bonds, and still nothing?

I concur with the comments above; 5% return on bonds was one of, if not the, key appeals to sign up to Dozens when it was marketed earlier in the year. I found out through Seedrs, but there were other means.

I’m using the saving rules I’ve set up, which are fun - rounding up, rainy day and a ‘save a quid for new trainers when I go for a run’ IFTTT rule I made with Strava - but other than that I’m just not using the card.

Besides the delay on the bonds, any news on Apple Pay?

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Another Apple fan here - still waiting. R-

If it’s too good to be true it probably is. 5% debt carries enormous risk in a low interest rate environment. These are high yield/junk credit bonds. If there is a default prepare yourself for a long process of money recovery if there is any. Banks, when lending, at least ask for collateral.

However, this current account is not covered by the Financial Services Compensation Scheme – because Dozens is not a bank.

This money is actually deposited in a client account held with Bank of Scotland, which is part of Lloyds Banking Group.
Therefore this is FSCS protected up to £85,000, but bear in mind if you’re already a Lloyds customer any money saved with Dozens will detract from the value of protection you have with other Lloyds accounts.

'If it works as intended then it will be great for consumers - especially the potential five per cent return on the bond - but this certainly isn’t a risk-free proposition.

I am very interested in parking my cash with Dozens, 5% is very attractive and as far as I know there is no other equivalent product out there for retail investors.

How accessible are these bonds and how reliable is the allocation. From this forum I see that there is shortage of supply. Thanks, L

What are the terms of the Bond and when will it be available again?
I have approx 10k that I want to allocate, can do it all via your app?
Scot

Depends what your mean by reliable but there is no guarantee your bid will be successful. All that can be said is chances of success increase if you bid a smaller amount.

After two rounds of bonds my initial thought is the bidding system brings with it too much faff. You have to think about what to bid each month, commit funds for a few days before the bonds can even be issued (with no interest earned in that period), and there is no guarantee of success. If not successful you then have to spend time finding somewhere else for that money. I don’t think this faffiness is conducive to good saving/investing habits.

I’d prefer if Dozen’s met their goal of helping smaller savers/investors by capping the bid amount to a level that is likely to be successful. Or perhaps offer some predictions on likelehood of success of different bid amounts. This won’t guarantee success but Dozens should have a lot more data to base effective caps or likelehood scores on than individual savers.

If they capped maximum bid amount I think a better tie breaker (in the event of running out of bonds in any given month) would be to give preference to to those who use Dozens’ others features. E.g. those who regularly do their spending through Dozens. This wouldn’t help me as I don’t yet use other aspects of Dozens but it would feel to me to be more reasonable to give preference to Dozens primary users.

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The plan is to have an issuance available each month. This will depend on availability and demand, but that is happening at the moment. We just closed the first issuance of £100,000 worth of bonds, and there were almost £1m worth of bids placed for them.

Our next issuance is scheduled for 1st October and will be £1m, with a portion reserved for our Seedrs investors.

In terms of ‘accessibility’ it is easy to bid, but the success of those bids each month will depend on the demand for whatever is available.

These will be available to read in the app as soon as the bonds are available for bidding, but you can also read the terms on our site: www.dozens.com/nex

Yes. Note, any bid must be made from your cash savings account. This is your ‘Grow’ tab in the app. The way to put funds in there for investments is to move money into your current account via bank transfer, then ‘boost’ your cash savings.

You cannot move money directly into that cash savings account.

See above for information on the bidding process with reference to larger bids especially.

Interesting idea about the link to spending.

Although convoluted, you could say that for every £100 spent on the dozens card, you get a £100 allocation for the bond, should you wish to accept.
(Or some similar calculation)

You could argue, this encourages spending, against the dozens ethos, as it is essentially rewards spending. But if you have half as much as you spend you’re not doing too badly. It just means you must use dozens as your main card.

This would probably smash the finances of dozens, paying £50 loss of each £1000 spent on the card. But, with the magic banking maths, we can assume that half of people may not choose to take the bond, so you then have £25 loss. Somewhat more ingestable.

As otherwise, you’re tempted to use dozens just for the 5% bonds and not a lot more. This spend to save model would encourage use of the app and spending. Returning revenue and increasing use of the app.

Can I ask how bids are allocated? I recall 13k not being utilized but 3k bids being rejected

All the details are here

https://www.dozens.com/our-5-bonds-everything-you-want-to-know/

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Yeah, that doesn’t help.

The 100k issuance wasn’t met yet bonds of 2k were rejected - when there was enough room left.

I thought they had 980k in first few hours

Where did they report the 100k wasn’t met?

The latest info I’ve seen was in the investor’s email.

No mention that they didn’t get to the 100k limit.

For our latest issuance of listed bonds, we received £100,000 worth of bids within 26 minutes of going live, and at closing had a total of bids from 613 customers, with a total value of £987,600.

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Yep that’s the one

If they had 12.4k left why didn’t it get allocated?

Just saying, but 987.6k is 887.6k more than 100k, not 12.4k less :eyes:

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