Banco BNI Europa has entered into a strategic partnership with institutional investment and asset management firm Fintex to invest in Upgrade’s consumer loans.
The partnership will also see the pair expand access to affordable credit to consumers in the United States.
The European challenger bank – which now invests in US consumer loans through consumer credit platform Upgrade – has invested an initial $30m as part of the agreement.
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 the asset manager for the underlying loans.
Banco BNI Europa has previously invested in US consumer loans originated on platforms such as Lending Club and Prosper via a third-party fund.
“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 led by Renaud Laplanche,” said Pedro Pinto Coelho, executive chairman at Banco BNI Europa (pictured above).
“We consider Upgrade to be different from other consumer loan offerings in light of its focus on borrower-free cash flow 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.”
In June, Banco BNI Europa entered into a cooperation to enable its customers to access European savings products provided by Raisin.
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