Banco BNI Europa has agreed to invest €10m through Portuguese peer-to-peer (P2P) lender Raize over the next two years.
The partnership with Raize will boost lending to SMEs across the country, with foreign direct investment having already reached a 20-year high in 2016.
The announcement comes less than a month after the bank agreed a £45m deal with UK P2P platform MarketInvoice.
“The bank is extremely committed to supporting SMEs in the European space,” said Pedro Coelho, executive chairman of BNI Europa.
“Our partnerships with Raize and MarketInvoice are just some of the initiatives the bank is promoting with fintech businesses and more are likely to follow.
“I believe it is inevitable that banks will have to work more collaboratively with fintech businesses going forward.”
The Portuguese economy experienced strong GDP growth of 2.8% in the first quarter of 2017.
“The deal between Raize and BNI Europa is the first of its kind in Portugal, and shows renewed interest from investors in Portuguese businesses,” added José Rego, chief executive officer and co-founder of Raize.
“We are seeing very interesting growth rates in the Portuguese market – a market most people thought was too risk-averse and unsophisticated.
“In fact, at the pace we’re growing, we expect 25% of SMEs in Portugal to be financed by investors in five to 10 years’ time.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Commercial mortgage brokers positive despite Brexit concerns
Almost four-fifths of commercial mortgage brokers (78%) said they felt confident about the lending environment in 2018, up from 72% in 2017, according to new research.
Metro Bank names new commercial banking director
Metro Bank has appointed Jamie Sim (pictured above) as a commercial banking director within the commercial real estate team.
The launch of Open Banking
The launch of Open Banking at the weekend is clearly an important milestone in opening up the UK retail banking industry to much-needed competition.
Aldermore appoints specialist vehicle valuations head
Tim Bearder has joined Aldermore as its new head of specialist vehicle valuations.
Millennial banking app secures FCA approval
Emma Technologies Ltd has received approval from the FCA.
Open Banking goes live: industry reacts
The launch of the Open Banking scheme last week has presented many opportunities, but as one bank has stated, data sharing alone will not revolutionise the market.
EIB and Bankia to allocate €800m to SMEs and mid-cap projects
The European Investment Bank (EIB) has agreed a €400m loan with Bankia which will provide finance for Spanish SMEs and mid-cap (up to 3,000 employees) projects.
Open season on Open Banking
Reading the national media on Open Banking, I get the sense of an impending cock-up of England World Cup football proportions.
Charter Court agrees to sell its interest in mortgage securitisation
Charter Court Financial Services Group PLC has agreed to sell its entire economic interest in the Charter Mortgage Funding 2017-1 PLC securitisation (CMF 2017-1) for £26.5m.
Monzo opens API to third-party companies
Monzo has announced that it has made an interim API accessible to third-party companies authorised as Account Information Service Providers (AISPs) by the FCA.