Mobile bank N26 launches loans with credit marketplace Auxmoney
The process from application to offer, verification and approval is digital
Berlin-based mobile bank N26 has teamed up with credit marketplace Auxmoney to offer loans in Germany.
The deal builds on N26’s current range of consumer loans – and with this new partnership, N26 says it will soon be able to offer loans to those such as students, the self-employed or freelancers. The bank already offers a current account for the self-employed. As with all its other products, the service is directly available in the app.
Valentin Stalf, founder and CEO of N26, says: “We see a strong development towards platforms with multiple providers. However, these are often difficult for customers to use and entail 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.”
The expanded loan offers include amounts from €1,000 to €25,000 at a duration of 12 to a maximum of 60 months, and interest rates from 3.95%, depending on maturity and credit rating.
The process from application to offer, verification and approval is digital. The customer first specifies their desired amount and then fills in questions about their personal situation directly in the app. This process is then followed by a digital credit check. A corresponding loan offer, either from N26 or Auxmoney, follows in “just a few seconds”.
An electronic signature is required to complete the process and sign the contract. iOS users can use Auxmoney now, the Android version will follow soon – but no dates have been provided.
Auxmoney is based in Düsseldorf and was founded in 2007. It says it has more than 50,000 investors, and has funded over 70,000 loan requests with a total volume of more than €500 million. The firm is backed by investors such as Index Ventures, Union Square Ventures, Foundation Capital, Partech Ventures and Crosslantic Capital.
It’s a numbers game
Other recent news for N26 this year includes a deal and a milestone.
It partnered with Clark, a German insurance robo-advisor, to help customers of N26 “better understand their current tariffs and improve their insurance situation”.
In March, N26 said its user base grew to more than 300,000 over the last year, tripling in size since the last announcement of 100,000 users in January 2016.
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