Auxmoney helps European banking disruptor to expand consumer credit offering.
Auxmoney helps European banking disruptor to expand its consumer credit offering.
Yet another marriage has been forged between Europe’s digital banks and marketplace lenders. This time the happy couple are N26 and German consumer credit marketplace auxmoney. The former is a fully-licenced, mobile-optimised banking challenger with over 300,000 customers to its name. Auxmoney is perhaps the leading marketplace lender in mainland Europe, with approximately half a billion Euros lent to date, according to AltFi Data.
Partnerships of this kind are fast-becoming the blueprint for loan offerings within the digital banking sector. London-based Revolut, which only this morning capped off a £50m Series B fundraise with an extra £4m in crowdfunded capital, formed a similar partnership with P2P platform Lending Works in March.
N26 launched a consumer credit proposition of its own in February, targeting creditworthy employees. The digital bank says that its new partnership with auxmoney will expand the range of loans on offer to its customers, opening up options for the self-employed, freelancers and students. The loans will range from €1,000 to €25,000 with terms range from 12 to 60 months and interest rates beginning at 3.95 per cent per annum.
As is typical of such integrations, N26’s application process is entirely digital. Customers specify the amount they wish to borrow and fill in an online form, before being subjected to a digital credit check. If approved, they will then receive a loan offer either from N26 or from auxmoney within a matter of seconds. N26 has advised that customers will always be matched with the loan that is best-suited to their requirements.
“We see a strong development towards platforms with multiple providers,” said Valentin Stalf, founder and CEO of N26. “However, these are often difficult for customers to use and entail the time-consuming task of comparing the offers of multiple banks. Through this partnership we are combining the advantages of a platform with an exceptional user experience.”
Auxmoney CEO Raffael Johnen said that his platform is already helping a number of retail banks to improve their loan offerings via partnerships. “Now we are transferring this principle into mobile banking with N26,” he explained.
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.