Strong growth in 2021 for Loanboox

Strong growth in 2021 for Loanboox

The leading European debt financing platform Loanboox reports a strong business year 2021, with 700 closed deals and doubled revenues. The Fintech recorded the fastest growth in Germany and concluded its first deals in Eastern Europe.

Five years ago, Loanboox entered the market with the vision to make debt capital markets more efficient, transparent and fast. To date, municipalities, cities and large organisations closed 2’400 loans with a total volume of more than CHF 26 billion. These financings enable valuable projects for our societies, including renewable energy, renovation of hospital infrastructure or new kindergarten buildings. In 2021, the growing activity from users resulted in a doubling of the fintech’s revenues.

Internationalization speeding up

The Fintech’s internationalization strategy pays out: “We achieved the strongest growth by over 200% in Germany, where cities such as Mönchengladbach, Frankfurt or Königswinter profit from accessing money more quickly and at very competitive rates” comments Philippe Cayrol, CEO of Loanboox. Thanks to a new innovative product, the company also enabled first transactions in Portugal, Poland, Bulgaria, Romania and the Czech Republic in 2021.

Broadening of services

Apart from its international expansion, Loanboox is constantly innovating by creating automation and debt management tools as well as deeper analytics for its customers. The Fintech offers a broader service for borrowers, including debt planning and transaction support on large financings. 150 active lenders profit from digitalized processes, data insights and from a lean co-creation of new products.

Strengthened advisory board

To support the strong growth journey of the company, Loanboox strengthens its advisory board. Frank Mattern, former Senior Partner at McKinsey & Company and independent advisor and board member at various international companies (e.g. Morgan Stanley Europe SE and Centerbridge Partners Europe), reinforces the team with his extensive experience and network.

About Loanboox

Loanboox is the leading European platform for debt financing for professional organizations and a member of the business community Leaders for Climate Action. More information about Loanboox, see here.

Contact persons

Loanboox
Philippe Cayrol, CEO
Martina Bühler, CMO
Talacker 50, 8001 Zurich, Switzerland  
+41 55 220 78 29, press@loanboox.com

From 0 to 23 billion in 5 years

A start-up that broke new ground by digitising municipal lending in Germany is celebrating its 5th anniversary: Loanboox. With 23  billion euros in closedfinancings in seven countries, the financing platform started off successfully and is rapidly developing its offerings further.

Since its launch in 2016 in Zurich as a platform for municipal finance, borrowers have completed more than 2,100 transactions with a volume of 23 billion euros in seven countries. A team of 40 employees serves 3,000 registered municipalities, cities, public institutions, large companies as well as institutional investors and banks and is rapidly developing the platform.  

“The high demand shows the need for efficient debt capital markets,” comments Philippe Cayrol, CEO of Loanboox. “In 2021, we enabled the creation and expansion of municipal infrastructure, such as kindergartens and school buildings, broadband expansion and road construction. It makes us proud to make the debt capital markets easier and faster for all market participants, while contributing in a small way to tomorrow’s society.” 

The idea behind Loanboox was radical and bold: to create a digital marketplace for large loans. Borrowers submit their loan requests online, professional investors bid on them – saving time and creating transparency. ”The largest requests so far are 450 million euros. As the business matures, we are also seeing an increasing rush from very established borrowers” adds Cayrol.  

 

A lot has happened since the first days. Loanboox has developed automation and analysis tools for its clients. Advisory services such as financing planning and support for more complex mandates complement the services. 150 active capital providers benefit from more efficient processes, data insights and co-development of new products.  

In the last 6 months, the company has celebrated a number of firsts on its platform: The first sustainable loan, the first secured financing and the first transactions in Eastern Europe. These developments pave the way for a successful and sustainable future, both for clients and Loanboox.   

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. Clients are municipalities, municipal companies and municipal utilities as borrowers, institutional investors and banks as capital providers. You can find more information about Loanboox here.

Contact details for questions

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

Strong growth in 2021 for Loanboox

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 

Interest rates and inflation – Daniel Stelter’s economic forecast

Interest rates and inflation – Daniel Stelter’s economic forecast

How do cities and municipalities get through the Corona crisis? What do capital providers and investors need to be successful? And what advantages does digitalisation bring? In the loanboox.asks. series, we talk to experts about topics like these. Daniel Stelter kicks off our audio talks.

The forecasts for 2021 are mixed. On the one hand, highs on the stock market – on the other hand, dampened economic expectations due to the ongoing Corona pandemic. And on top of that, central banks are pumping massive amounts of money into the markets and keeping interest rates low. We talked to the economic expert and author Daniel Stelter in loanboox.asks. about how all this is connected. He says:

The economic consequences of the Corona crisis will keep us busy for a very long time.

Listen to his assessments in the following audio:

Niedrigzins und Inflation - ein Ausblick auf 2021 mit Daniel Stelter

by Simone Franzke

About the person:

Daniel Stelter is a macroeconomist, strategy consultant and author. In his podcast “Think beyond the obvious” he looks behind the scenes of economic and financial policy and explains important connections.

No time to listen to the audio now? Then simply download the article.

Press release: Fintech company Loanboox cooperates with ICF BANK

Press release: Fintech company Loanboox cooperates with ICF BANK

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.

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. ….