Peer-to-peer lending platform backer Varengold Bank has partnered with Berlin-based fintech Banxware to enter the embedded finance market.
The German bank will provide the regulatory infrastructure alongside Banxware’s technology to launch tailor-made embedded loan products.
This will provide businesses selling through e-commerce marketplaces or payment providers with an easy access to finance based on their sales and revenue.
“We strongly believe in Banxware´s vision of embedded lending and look forward to bringing their innovative loan products to more European markets together,” Lukas Diehl, head of marketplace banking of Varengold Bank, said.
The two companies have already gone live with a revenue-based merchant financing product.
“With Varengold Bank we found a partner that is bridging both of two worlds, they have a deep understanding of European banking regulation as well as modern technology,” Nicolas Kipp, co-founder of Banxware, said.
“With their regulatory infrastructure we brought the new generation of SME financing to the market in a very short time.”
Varengold Bank has funding agreements with a number of alternative lending platforms including EstateGuru, Assetz Capital, MarketFinance and LendInvest.
Last year, the bank pledged to continue partnering with fintechs after its latest financial statement revealed that it had increased its market capitalisation and earnings.