Connecting instead of disrupting: How FinTechs and banks work together

Connecting instead of disrupting: How FinTechs and banks work together

by | Nov 5, 2020 | Borrow, Invest

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FinTechs versus banks – the public likes the image of the small, innovative David against the big, ponderous Goliath. What is often disregarded in the process: the customer benefit. We explain why cooperations with institutional partners like banks are important and useful. 

Many banks, insurance companies and businesses want to become more customer-oriented, efficient and agile. But structures that have evolved over decades and internal regulations do not exactly make this development process easy. It is important for clients, especially in difficult times like these, to find efficient financing options that can also be easily operated from the home office.

The market for such partnerships is there

For our COO Dominique Hügli, the advantages were therefore obvious when, for example, the opportunity arose to cooperate with Deutsche Kreditbank (DKB). Through the cooperation, both sides want to drive the digitalisation process in the financial sector and better exploit the existing market potential.

Digital transformations and joint projects like these are always a challenge as well. It is important that everyone is brought on board, believes in the joint product or service and consistently follows the underlying strategy.

But it worked well and at the end of the process, with the “Direktdarlehen”, we have a digital product that everyone is happy with – especially the customer. What’s more, the cooperation with DKB shows that it is worth expanding the portfolio for further strategic partnerships. With innovative partners who – like us – believe in the digitalisation of the debt capital markets. What’s important here: picking up on needs and developing new standard solutions from them.

Interesting topic? You can find information on further services with DKB here.

“financial business”: digital platforms increasingly attractive for municipal financing

by | Oct 12, 2020 | Borrow

Entwicklung Kommunalfinanzierung

There is no sign of a financial recovery in cities and municipalities any time soon, reports the business magazine “FinanzBusiness” in a recent article. As a result, digital platforms such as Loanboox are becoming increasingly attractive for municipal financing.

The Corona crisis has torn deep holes in the budget coffers of cities and municipalities and, according to “FinanzBusiness”, municipal debt will continue to grow. The magazine quotes a current study by the Federal Statistical Office, according to which the deficit in the first half of 2020 will total 9.7 billion euros. For comparison: In the same period of the previous year, the budget deficit was not even 0.3 billion.

Municipalities must meet their financial obligations.

The main culprit in this development is the slump in trade tax revenues, triggered by the week-long lock-down in the Corona peak. At the same time, however, the necessary expenditures for investment and social services remain high – a challenge for the municipalities.

Digital debt capital market platforms such as Loanboox are feeling the effects of this enormous demand for financing, writes “FinanzBusiness”. The number of tenders on the platform grew by 137 percent in the second quarter of 2020 compared to the previous year.

More investors on board again

Due to permanently low interest rates, liquidity loans with short maturities remain particularly attractive. According to “FinanzBusiness”, however, there is now also a trend towards longer maturities. And: Lenders who had withdrawn from the market at the beginning of the Corona crisis in order to preserve limits are almost back on the debt capital market platform at pre-crisis levels.

“In the year-end business, uncalled funds are usually financed, which is why we expect another surge in demand on the investment side,” Loanboox is quoted as saying.

These expectations are in line with the current market development and other expert forecasts, according to which municipalities need to broaden their financing and think about their investor base. Please also read our current market update for the month of October. It is already clear that the second half of 2020 will remain exciting for borrowers and investors.

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Press release: Fintech company Loanboox cooperates with ICF BANK

by | Oct 6, 2020 | Borrow, Invest, Media

The fintech Loanboox and ICF Bank AG have joined forces to turn the market for bond issues in Germany upside down: The first corporate bonds of medium-sized companies will soon be processed digitally.

After the first successful issue via Loanboox in Switzerland, the first corporate bonds in Germany are to follow in the next few weeks. With the cooperation of the established ICF BANK AG Wertpapierhandelsbank and the independent debt capital market platform Loanboox, both sides have created an essential basis for joint activities in the German market. Sascha Rinno, Chief Capital Markets Officer of ICF BANK AG:

«We are convinced that digitalisation will also find its way into the capital market business. Thanks to Loanboox’s digital platform, we are bringing more efficiency and transparency to the processing of bond issues – to the benefit of issuers and investors.»

Investors are continuously informed about the most important process steps and deadlines via the platform and have access to all transaction-relevant documents and information. This increases the efficiency of the placement process for all parties involved.

Stefan Feller, Director Capital Markets at Loanboox: «Together with the specialists at ICF, we are pleased to digitise the issuing process for corporate bonds in Germany as well. This will not only make it more comprehensible, but also more accessible.»

About ICF Bank AG

ICF Bank AG with its more than 75 employees is one of the leading securities trading banks in Germany.

In addition to the Market Making and Brokerage Services business areas, ICF is active in the Capital Markets business area as a long-term and reliable capital market partner and supports its clients in all questions of equity and debt financing. The focus of the advisory services is on listed companies or companies close to the capital market with plans to enter the capital market. The experienced team of experts has successfully completed numerous capital market transactions and offers its clients efficient support in the structuring and placement of equity and debt capital markets transactions.

About Loanboox GmbH

The fintech Loanboox is Europe’s leading debt capital market platform for large corporations, the public sector, institutional investors and banks. Loanboox has processed over EUR 40 billion in financing requests to date and is active in six countries.

Investment in low interest rates: new banking services for institutional investors

by | Aug 5, 2020 | Borrow, Events

Low interest rates and the Corona crisis pose challenges for institutional investors. Now it is time to redefine the investment strategy and examine possible options for action. Many diversification options and interesting returns are offered by lending to municipal and municipal-related clients.

So far, however, it has only been possible for insurance companies, pension funds and pension schemes to invest in loans to a very limited extent. In Germany, commercial lending is subject to authorisation under the German Banking Act (KWG) and is a classic banking business. To allow institutional investors to extend loans directly to municipalities, public utilities or municipal companies, Loanboox and Deutsche Kreditbank AG now offer digital banking services for fronting bank and paying agent.

Content of the webcast:

The developers present the new services in a webcast. They will show why an investment in the public sector asset class is worthwhile, what advantages the services Fronting Bank and Paying Agent offer and how the operational processing via the Loanboox platform works.

For whom?

The webcast is aimed at employees of insurance companies, pension funds and provident funds who are responsible for the area of capital investment.

The Webinar

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Axpo Holding AG places first listed Green Bond via Loanboox

by | Jul 15, 2020 | Borrow, Invest, Media

Zurich, 15.07.2020. Axpo Holding AG is the first issuer to place a listed green bond entirely digitally via the independent debt capital market platform Loanboox.

The green bond for CHF 133 million and a term of 7 years was well received by investors in the capital market, and 35 orders got allocated. The energy group will use the capital to finance projects in the photovoltaic and wind energy sectors. The great interest shown by investors underlines the demand for sustainable investments and confirms Axpo’s strategy of profitable growth in renewable energies.

First fully digital corporate bond

The green bond was issued entirely digitally via the debt capital market platform Loanboox. In the dynamic and transparent Loanboox Live Bookbuilding® tool, investors set the price themselves. All process steps, deadlines and fees were known in advance to investors and issuer and were transparently visible at all times. Both sides were able to follow the order book in real time. The energy company placed the bonds with asset managers, banks, funds, pension funds and insurance companies. Martin Denkinger, Head Financing & Cash Management at Axpo, is very satisfied with the premiere:

The transaction via Loanboox worked smoothly and significantly increased transparency with regard to investors.

Important step towards digitalisation of the capital market

After successfully establishing itself as the leading platform in the field of municipal financing, Loanboox is now also digitalizing the bond market. Philippe Cayrol, CEO of Loanboox:

This first bond is a proof point that our digital process creates value for all market participants. We’re proud of the first deal and look forward to working with innovative clients and partners to set new standards in transparency, pricing and allocation in the primary market in Switzerland and in the EU.

Competent partners supported Loanboox

The Green Bond of Axpo Holding AG has a coupon of 1.002 percent. The bond will be listed on the SIX Swiss Exchange. Société Générale Paris, Zurich Branch as paying agent and listing partner, Deutsche Bank (London) as market maker, First Advisory Bond Services AG as holders representative and PwC Switzerland as due diligence agent acted as partners. Loanboox was also supported by Bär & Karrer AG as legal advisor in the transaction..

Contact person:
Loanboox
Martina Buehler, Head Marketing & Communication
Stefan Feller, Director Capital Markets
Talacker 50, 8001 Zurich, Switzerland
+41 55 220 78 29
press@loanboox.com
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Press release: Local authorities in Baden-Württemberg rely on digital platforms

Press release: Local authorities in Baden-Württemberg rely on digital platforms

by | Jul 8, 2020 | Borrow

  • Corona pandemic increases borrowing needs
  • Every second municipality wants to use digital lending platforms

Cologne, 09 July 2020: The digitalisation of administration is gaining momentum: Every fifth municipality in Baden-Württemberg relies on online lending platforms for debt financing. Half of the municipalities plan to make greater use of platforms in the future.

This is the result of a study conducted by the fintech Loanboox in cooperation with the University of Applied Sciences Konstanz. Around 160 municipalities from Baden-Württemberg took part in the survey. An overwhelming majority (82%) of the participating cities, municipalities and municipal associations have a population of 5,000 to 50,000.

One focus of the study was the question of the degree of digitalisation of municipal credit management. Among other things, the study examined the extent to which digital financing platforms are already being used by Baden-Württemberg’s municipalities.

Corona pandemic increases borrowing needs

Against the backdrop of the decline in revenues as well as the increase in expenditures, the municipal level anticipates greater indebtedness as a result of the Corona crisis. Three quarters of the surveyed municipalities (75%) expect the expected need for debt capital to increase within the next three to five years. Another 17 % of the study participants expect a constant need for debt capital, whereas 5 % forecast a decrease. Due to this development, municipalities under pressure will use new tools to raise debt capital. This includes, for example, the use of online lending platforms.

Digital solutions are becoming increasingly important for municipalities

Every fifth municipality (20 %) has already used such a digital marketplace. This trend will increase in the future. The majority (52 %) of the study participants plan to make greater use of online tenders. The willingness to use them increases with the number of inhabitants. The larger a municipality is, the more open it is to using digital solutions to meet municipal financial needs.

From the perspective of the municipalities surveyed, the advantages of credit platforms lie primarily in the comparability of offers (16%), the transparency of the cost structure and the independence of the platforms (15%). Furthermore, the ease of use (15%), data security (13%) and better conditions compared to regular credit tenders (12%) are relevant.

 

About Loanboox
Loanboox is the independent debt capital market platform. It connects companies and public sector institutions seeking capital with investors. Participating parties can negotiate on the platform without intermediaries and conclude loan transactions completely digitally. Since the launch of Loanboox in Germany in October 2017, financing of more than 7.5 billion euros has been requested via the platform. Around 600 borrowers and 150 capital providers from Germany are now connected to the platform.