Auxmoney secures funding from BNP Paribas as buys loans online

The German fintech said it will invest up to €500m (£377m) in loans originated on its platform.

German fintech auxmoney has secured funding from the French bank BNP Paribas, which it will use to start buying loans on its own platform.

Auxmoney, which did not disclose how much funding it had received from BNP Paribas, said it will invest up to €500m (£377m) in loans originated on its platform.

Auxmoney, which says it’s the largest marketplace in continental Europe, provides an online marketplace which links up individual borrowers with institutions and private investors.

“With this step, we are further matching our interests with those of our marketplace investors. This alignment is a major quality seal underpinning our growth trajectory”, Raffael Johnen, CEO and co-founder of auxmoney, said.

Manish Chandra, head of ABS Financing Europe at BNP Paribas, said: “The strength of auxmoney’s origination platform, underpinned by a robust and digital credit scoring model, has allowed it to consistently provide credit to consumers and self-employed in Germany over a number of years including through this most recent crisis.”

“We are excited to cooperate with one of the leading European fintechs and look forward to the partnership with auxmoney and its new majority shareholder Centerbridge“.

 "This is a major milestone in strengthening our platform for institutional investors. Partnering with BNP Paribas will accelerate our trajectory in establishing new investment structures at scale”, Daniel Drummer, CFO, auxmoney, added.