Frankfurt-listed fintech firm MyBucks has teamed up with Frankfurt-listed technology banking group FinTech Group to strengthen its consumer lending activities across Africa and Europe.
biw Bank, a deposit-taking technology bank and a subsidiary of FinTech Group, will lend MyBucks €8m initially as part of the partnership.
FinTech Group is also in talks with institutional investors to syndicate the loan to raise the debt funding amount offered to MyBucks. Plans are on to eventually boost the credit volume provided by biw Bank and its co-lenders in the medium-term to €40m.
FinTech Group CEO Frank Niehage said: "We have done extensive due diligence and are impressed with the credit scoring technology and risk management of MyBucks. We are very pleased about the partnership and look forward to expanding and growing it."
FinTech Group and MyBucks also plan to expand presence in various markets of Europe together.
MyBucks deputy CEO Tim Nuy said: "FinTech Group is undoubtedly the market and innovation leader in transaction banking and technology and outsourcing solutions for financial services companies in Europe. Especially its cash-rich balance sheet with large retail cash deposits derived from FinTech Group's online brokerage activities make it the perfect partner for us to quickly grow our lending book."
Luxembourg-listed MyBucks offers unsecured consumer loans, banking solutions and insurance products to customers. The company operates in twelve African and two European countries.
"MyBucks is already expanding its offering both in Africa and Europe by adding insurance and banking products to its core lending product. FinTech Group and MyBucks also intend to co-operate on the technology side, using FinTech Group's core banking platform to ultimately create a full service online retail bank," Nuy added.