Successful 2020 for Loanboox despite Covid-19

Successful 2020 for Loanboox despite Covid-19

Quadrupled closing volume compared to 2019


The platform for debt financing looks back on a successful business year. The fintech recorded the strongest growth in Germany with a quadrupled annual closing volume of 2.2 billion euros. An important building block for the result was the introduction of the innovative online product “Direktdarlehen”.  

Despite volatile conditions, financing with a total volume of EUR 7 billion was concluded via Loanboox in 2020 – 2.2 billion of which in Germany alone. In the German market, the debt financing platform has thus quadrupled its closing volume. The number of loan enquiries increased by 200 percent compared to the previous year. The positive growth trend from 2019 was successfully continued. 

Corona and the impact on the municipal lending business t 

Due to the consequences of the pandemic, the demand for fixed cash loans to secure short-term liquidity increased strongly. The new solution for taking out and granting municipal liquidity loans, developed together with Deutsche Kreditbank AG (DKB), has taken up this need: 43 municipalities were able to secure favourable conditions for their liquidity thanks to “online direct loans” and benefited from a significant simplification of processes. In spring 2020 alone, more than EUR 1 billion in loan volumes were processed via the platform.  

Logging on to the site www.loanboox.de became a daily ritual in many combing offices to check interest rate conditions. Customers also benefited from the fact that almost all financing steps can be processed digitally – even from the home office. The platform proved itself in the crisis period and was a solid financing partner for large cities as well as for districts, smaller cities and municipalities. 

Early summer brings back the lenders

On the investor side, the crisis caused restraint in March and early April. Individual banks withdrew their liquidity from the money market altogether, savings banks even took in cash investments at plus interest rates. In both the money and capital markets, the number of offers for municipalities declined. From mid-April, the situation eased again: interest rates returned to their historically low level – even slightly below those before the Corona crisis – and so did the number of offers for municipalities.  

About Loanboox

The fintech Loanboox is Europe’s leading platform for debt financing and is represented in six countries. Four years after going live, the 20 billion mark in closed volume has been broken. Since its launch at the end of 2016, more than 1600 deals have been completed. Customers are municipalities, municipal enterprises and municipal utilities as borrowers, institutional investors and banks as capital providers. 

Contact information for questions

loanboox GmbH
Ralf von Cleef, Geschäftsführer
Andrea Gazzetto, Marketing Communications Managerin
Neue Weyerstr9, 50676 Köln
0221 – 98654220, info@loanboox.de 

Digitisation as participation

Digitisation as participation

Professor Dr Michael Bruno Klein and DR. Johannes Winter explain:

The digital transformation is on everyone’s lips and represents a fundamental structural change that affects and changes all areas of life. Yet this “structural change” sounds so technical and impersonal, but it means the exact opposite, namely a change in the consciousness of all actors. An example: car sharing is not just borrowing a car, but availability – no longer ownership. So something is changing here on the mental level. The entire library is now in the eReader and no longer as documentation of one’s own (supposed) education in large bookshelves that dominate the entire study – and are gladly used as background (or faded in?) in online meetings.

In the economy, numerous areas of value creation have had to continually adapt to new market conditions (keyword “globalisation”). Digital networking, the development of a platform economy and advances in artificial intelligence (but beware: calculating is not thinking and correlation does not equal causality) will continue to change value creation. Previously successful business models will be innovated or disappear altogether, and data-driven business models will increasingly dominate.

The world of work will become more autonomous and flexible (that is the positive assessment) or more unmanageable and uncertain – that is the negative interpretation. One thing is certain – and not only triggered by the Corona pandemic – life and work are moving closer together – the keyword is home office and the somewhat worn-out term “lifelong learning” is making a comeback in this context – and not in the sense of “further education holidays”.

Digital technologies as a basis for social participation

In 21st century society, digital technologies – and the competent use of them – are synonymous with improved access to social participation. Whereas in the past the ability to read and write was enough to participate in social life, new skills will be needed in the future.

Let us first look at the concept of cultural techniques: Cultural techniques are cultural concepts for coping with concrete challenges in different life situations. The development of such cultural techniques always involves achievements that arise in a socio-cultural context, which is why cultural techniques are based on social interaction and social participation.

Simple cultural techniques are e.g. hunting and making fire, more complex cultural techniques are e.g. agriculture and science. Individual competences are necessary for each of these – here are some very simplified examples: Stone Age man had to be able to hunt, make fire and fight. Later, agriculture and animal husbandry were added, as well as the ability to trade; hunting and fighting took a back seat. The medieval knight had to be able not only to hunt and fight (also in tournaments), but also to dance and “Minne”. Today, social participation is usually determined by reading, writing and arithmetic. What was important at all times, however, was the ability to communicate, i.e. to be able to exchange ideas.

But how is digitalisation to be understood as participation? What skills do people need in the context of digitalisation as a cultural technique? Let us first ask what the goal of digitalisation actually is? Often the answer is – the networked society, but that is too short-sighted. The goal of digitalisation is a society in which we can live better, healthier and safer. The means to this end can be digitalisation. A key feature will be a new coexistence of man and machine, as well as being untethered to space. The “leap into digitalisation” initiated by Corona is an example of this – zoom meetings with partners worldwide and status symbols such as a large office or the assistant in the anteroom simply fall away. However, the previous means of assessing the counterpart associated with this also fall away; the atmosphere and the “chemistry” are no longer so easy to grasp. Communication becomes more direct and intercultural, but not more personal. One example is the development of foreign language competence in the future: who wants to cram vocabulary and grammar hour after hour when the little language computer (C3PO sends his regards) has a perfect command of all languages and all I need is a little microphone and a button in my ear? However, mastering a foreign language is more than just language, it is access to and understanding of a culture. Whether this awareness will be enough to learn vocabulary and grammar hour after hour is, in our view, more than questionable.

What skills are needed in digitisation? Here we often speak of “general literacy”, i.e. the basic understanding of digital functional logic and its implementation in hardware and software (functional logic not to be confused with programming). Further competences are application competence (i.e. the active and purposeful use of digital media) and discourse competence (i.e. the fact-based and constructive participation in debates and the collective solving of problems). This cannot be achieved with a compulsory subject of computer science, but on the contrary: digital competence must be developed in relation to every area of life (and every school subject).

FinTechs are digital pioneers

So what does this mean specifically for the financial sector? Where are the opportunities of digitalisation for new business models or new sources of income? What specific skills do employees of financial institutions need to have?

One answer is – as always – to see what the pioneers are doing, i.e. FinTechs in the financial sector, since they have digital competences that are at least worth knowing.

Two practical examples from the large pool of the German AI map provide some insight: In times of electronic payment networks, e-wallets and blockchain, three- to five-digit financial transactions per second are not uncommon – and given exponential growth in the IT industry, this will not be the end of the line. However, with this flood of data, no human can identify fraud incidents such as identity theft, account forgery or account takeover and stop transactions in time. Especially not in real time (less than a millisecond). This is where FinTechs like Risk Ident come into play with their digital business model: the fraud detection software of the Hamburg-based company, which emerged from the Otto Group in 2012, uses machine learning algorithms to detect irregularities such as account takeovers through phishing, malware or data theft. In this case, digitalisation reduces the potential for damage and helps where we would be defenceless against threats. Nevertheless, nothing works without humans: human data scientists, for example, develop algorithms, analyse data, check for plausibility and thus have something ahead of computer programmes: they are usually able to distinguish correlation from causality – a very important skill.

The second example shows how liquidity can be secured in companies (more important than ever in Corona times) by digitising receivables management and debt collection. FinTech PAIR Finance helps clients such as Zalando and Klarna to recover outstanding receivables and uses the AI method reinforcement learning to make target-oriented strategies and successful processes repeatable. For this purpose, the Berlin start-up evaluates characteristics such as reaction speed and trustworthiness of defaulting clients in order to identify behavioural patterns and derive willingness to pay. Since the number of people who fall behind with payments through no fault of their own often increases in times of crisis, digital receivables management is also about finding ways out of the predicament for both sides. This can be, for example, instalment payments or deferrals that enable both creditor and debtor to continue their customer relationship in a trusting manner. This can also be participation through digitalisation.

In order to establish new, demand-oriented business models, platform-based solutions are also gaining in importance for companies. Platforms are not a new phenomenon. They have long been established in the private sector. Companies like Facebook, Uber or Amazon are among the most valuable companies in the world today and address millions of users. The platform economy has also been slowly but surely gaining a foothold in the financial sector for several years. In addition to classic comparison portals, from the banks’ point of view it is above all digital credit marketplaces that have grown in importance. Such electronic platforms connect capital-seeking companies or public sector institutions with investors and act as “matchmakers”.

Investors connected to the platform have the opportunity to submit individual offers to the customer. Algorithms that filter according to region, sector, term and loan volume, for example, help here. Only after approval by the borrower are the financial institutions informed of the request and can view the company data. The internet-based application allows investors digital access to the prepared information of the borrowers with corresponding download options – conversely, the companies have equally complete transparency at all times, as offers can be viewed as soon as they are uploaded by the credit institutions. Customers thus have the opportunity to compare conditions online and vis-à-vis the credit institution at this point in time without any commitment obligation.

Let’s go back to the beginning: cultural techniques are based on social interaction and social participation and this also applies to digitalisation. Reading, writing and arithmetic will no longer be the be-all and end-all of social participation in the future (although they will certainly be useful). Digital competence in the sense of application competence (= active and purposeful use of digital media) and above all discourse competence, i.e. fact-based and constructive participation in debates and collective problem-solving, will continue to increase in importance.

By the way, nothing and no one will be able to do the thinking for us in the future – but only if we have already thought for ourselves. But if we haven’t done that (thinking) so far, then we don’t need to ask ourselves who will be doing the thinking for us in the future, because someone else is apparently already doing it. ….

Press release: 40bn milestone and strengthened executive team

Press release: 40bn milestone and strengthened executive team

  • BlaBlaCar manager Philippe Cayrol new CEO
  • Founder Stefan Muehlemann focuses on his position as Executive Chairman

Zurich, June 17th, 2020. The debt capital market platform Loanboox is broadening its executive team: Philippe Cayrol joins the Fintech as its new CEO. The experienced start-up manager takes over from founder Stefan Muehlemann who will focus on his role as Executive Chairman.

Philippe Cayrol, new CEO

unicorn BlaBlaCar. As Head of Corporate & Business Development, Cayrol developed the start-up into the world’s largest carpooling marketplace. Previously, Cayrol co-founded an investment fund in London that focused on growth capital for early stage companies.
The digitalisation of the large debt markets is only getting started, so I am very excited to join an exceptional team who is passionate about bringing more efficiency, accessibility and transparency to the debt capital markets. I am impressed by the innovative features and the traction of the platform and look forward to contributing to the future success of all our users,
says Cayrol.

Strengthened executive team to support new growth phase

With over CHF 40 billion of financing requests handled through the platform since the start and 2’500 organisations in six countries, I am incredibly proud of what we have achieved. As we now scale up our activities to the next level, including new products and target groups, it felt natural to strengthen the team. Whilst I was the right CEO for Loanboox’ inception and first years, it is now time to hand over operational responsibility to experts with relevant experiences. With Philippe, we have found a talented executive with the right mix of entrepreneurial spirit and execution capabilities,

says Muehlemann.

In addition to Cayrol, the two previous members Dario Zogg (Co-Founder & CTO) and Dominique Huegli (COO) complete Loanboox’ executive board. Co-Founder Andi Burri will continue his responsibilities as Country Head Switzerland and member of the Board of Directors, and will additionally focus on key customer relationships. Stefan Muehlemann, who founded Loanboox in 2015 and was CEO since then, will concentrate on his position as Executive Chairman.

About Loanboox:

Loanboox is the leading European debt capital market platform for large corporations, public-sector entities, institutional investors and banks. To date, Loanboox has processed financing requests of EUR 40 bn and is active in six countries.

Here you can download the press release and a picture of Philippe Cayrol and Stefan Muehlemann.

New Release May 2020

Loanboox works perfectly in all areas even during the Corona crisis. Our software development team has rolled out the new release from home office. Here are the most important changes.  

Website:

New design

There’s not much to explain – we hope you find it intuitive and you like it.  

Focus on relevant content: Our new blog

We will provide you with whitepapers, market information, factsheets and much more in our new blog. Come back regularly to check the news 

Lenny and Noa, our chatbots

The Loanboox family has grown: Lenny and Noa, our two virtual colleagues / chatbots. They are happy to answer your questions or forward them to the human colleagues. The chatbot tool is from the Swiss start-up Aiaibot. Try it out (just click on the head in the bottom right corner), there is a lot to discover 🙂  

Platform:

New design

The platform also got a fresher look, a more intuitive user interface, simplified tab structures, action buttons and a revamped document center.

Support

In order to be able to support you in the best possible way, we have introduced two new features: On one hand, you will find your direct contact person displayed on the start page. If you have any questions, you can always contact him or her via chat or call. On the other hand, there is a step-by-step assistant for the most important functions which should help you to get used to the new interface very quickly.

Specially interesting for borrowers: The portfolio

As of now, we offer our borrowers a portfolio. On one hand, you can see the most important facts about your previous financing requests at a glance (interest payment dates, expiration dates and volumes etc.), you can renew and find expiring loan tranches with just a few clicks. You can also add the loans closed outside of Loanboox, so that you have an overview about all your loans in your portfolio. On the other hand, you can find current market developments and interest rate overviews graphically displayed.

Specially interesting for investors: Investor profile and direct loans

Now you have the possibility to adjust your filter criteria in your investor profile according to maturity, currencies, segments, regions, etc. – so that they correspond exactly to what you are interested in and you will only be informed in case of matching requests. Loanboox has also launched a new product, direct loans. As an investor, you can reach a large number of borrowers in only one step and the borrowers can complete their offers in just two clicks; no tender, no effort, efficient for both contracting parties. For further information please don’t hesitate to contact us.

Recommendation for all our users: Do not use IE 11 anymore

If you are still working with the Internet Explorer 11 browser, we strongly recommend that you update it or use another browser. Otherwise, the platform will no longer work as desired. By the way, this helps you for many other programs, too, not only for Loanboox. 

Refresher needed or get started right away? 

Apart from these adjustments, there are many other new features you can discover on the platform.

Would you like to learn more about the new release? We are happy to explain the functionalities in detail in a webinar or you can test it yourself directly on the new platform.   

– for registered users –

– for new customers and registered users –

Questions or remarks? 

If you have any questions, please feel free to contact us via chat or by phone (+49 221 9865420). We look forward to working with you in the future to make the debt capital markets more accessible, efficient and transparent.

 

Your Loanboox-Team

Press release: Loanboox receives BaFin approval under §32 KWG

Cologne, 22 April 2020. The debt capital market platform Loanboox has received its financial services licence from the financial supervisory authority BaFin in accordance with section 32 of the German Banking Act (KWG). As a regulated financial services institution, Loanboox is now qualified and authorised to provide investment brokerage services.

With the notice of approval from the supervisory authority, the fintech is pushing ahead with the expansion of its range of services in Germany:

The successful licensing by BaFin is an important building block on our strategic growth path. Thanks to the licence, we can now offer our clients a very broadly diversified product portfolio,

says Stefan Mühlemann, founder and CEO of Loanboox.

So far, Loanboox has mainly arranged financing for municipalities, districts and public utilities in Germany. The company will continue to pursue this course. In the future, however, the business is to be significantly intensified with new customer segments. For example, large and medium-sized companies could soon also issue registered and bearer bonds completely digitally via the platform.

We are currently in in-depth discussions with potential strategic partners to explore possibilities for cooperation. Here we have also included institutes from other European countries from the very beginning,

says Mühlemann.

Due to the EU-wide freedom to provide services, Loanboox can also use the authorisation obtained in Germany in other member states of the European Economic Area (EEA) by means of a notification procedure (passporting). In addition to Germany, the Swiss fintech is already active in Austria, France and the Netherlands. Further market entries are planned. In total, more than 2000 borrowers and 500 capital providers have access to the platform.
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.

Here you can download the press release and a picture of Stefan Mühlemann.

Corona: Loanboox remains available 24/7

Corona: Loanboox remains available 24/7

Our customer advisors will be happy to support you with all your questions

Dear clients, partners, shareholders and friends of Loanboox,

The Corona issue has been dominating the headlines for weeks – and has now also reached the capital markets. Almost all sectors of the economy are under great pressure due to quarantine measures and massively restricted travel.

At Loanboox, we are following the current developments closely, taking the situation seriously and implementing all measures proposed by the Federal Ministry of Health as best we can.

Our platform remains available for you around the clock. If you need support due to staff shortages (e.g. when posting financing requests, submitting offers, etc.), please feel free to contact us. Our account managers are always there for you.

Best wishes

Your Loanboox Team

Archives

Sharing is caring : )