Banco BNI Europa and Funding Circle have entered into a partnership to provide access to capital for small and medium-sized businesses in Germany, according to the bank. Banco BNI Europa is a digital challenger bank based in Portugal.
As part of the agreement, Banco BNI Europa will provide €50 million to finance small business loans in Germany over the coming months. Banco BNI Europa said this is their largest commitment to German small businesses to date. The investment is expected to provide access to finance for approximately 600 companies and create 1,500 new jobs. Banco BNI said the long term goal is to extend the partnership to other countries where FC is active.
“An investment in German SME – the staple of European economic stability – is a highly attractive asset class,” said Pedro Pinto Coelho, Executive Chairman of Banco BNI Europa. “Funding Circle is the professional partner that convinced us with their risk assessment and credit analysis. A perfect match: both Banco BNI Europa and Funding Circle have proven that they are able to stimulate local economies through technological and financial innovation.”
Thorsten Seeger, Managing Director Germany of Funding Circle, described the new partnership as an important new signal for German SMEs.
“The investment of a renowned institutional partner such as Banco BNI Europa is a stamp of approval of our online lending platform model and our mission to facilitate access to finance for small businesses and reduce their dependency on an outdated banking system. Besides delivering attractive returns to investors, we also measure our success through our immediate contribution to stimulating the local economy.”
Funding Circle is one of the largest online lending platforms in Europe and the largest in the UK. The peer to peer lending has originated over $5 billion in SME loans globally to date.