Source: Banco BNI Europa
European challenger bank Banco BNI Europa and Fintex have entered into a strategic partnership to invest in Upgrade’s consumer loans and expand access to affordable credit to consumers in the United States.
Banco BNI Europa, which is active across Europe, now invests in US consumer loans through Upgrade, one of the fastest growing platforms in the US. This loan purchase programme was implemented by Fintex Capital, which issued a bond to Banco BNI Europa backed by the portfolio and Fintex acts as asset manager for the underlying loans.
As part of the agreement, Banco BNI Europa committed an initial sum of USD 30 million. Banco BNI Europa has already invested in US consumer loans originated on platforms like Lending Club and Prosper through a third-party fund.
Upgrade is a US consumer credit platform that delivers access to affordable credit and credit education to consumers. With this investment, Banco BNI Europa is joining more than a dozen of institutional investors that are investing in consumer credit through the Upgrade platform.
Pedro Pinto Coelho, Executive Chairman of Banco BNI Europa said, “We are pleased to increase our exposure to the US consumer lending market and particularly delighted to benefit from the expertise of Upgrade’s experienced team lead by Renaud Laplanche. We consider Upgrade to be different from other consumer loan offerings in light of its focus on borrower free cashflow as a key metric. We’re also supportive of Upgrade’s credit education initiative, which provides much needed advice and assistance to US borrowers as to how they can improve their credit health.”