The credit brokerage platform FinMatch has entered into a cooperation with KfW. FinMatch is a platform through which companies can submit a financing application to banks. FinMatch structures the necessary documents and sends them to a large number of potential financiers connected to the platform.
Read more about the partnership between FinMAtch and KfW and find the most important financial headlines with the Born2Invest mobile app.
KfW to take over the entire application for CFOs
During the pandemic, the fintech company drove the strategy to take over the complete application process for CFOs in the KfW Corona assistance. In this way, the Stuttgart-based company wanted to relieve not only the CFOs but also the banks thanks to the structured processing of loan applications. “We worked even more intensively with KfW during this time and were in direct contact with them,” recalled FinMatch CEO and founder Martin Hipp. The partnership now announced is intended to further intensify the cooperation between the platform and the development bank. An important lever for this: FinMatch is to receive more information about KfW’s lending processes and criteria.
Since its foundation by the former Manz CFO Hipp one and a half years ago, FinMatch has focused on the procurement of promotional loans. In retrospect, Hipp considers this to be an important basis for acting in the Corona crisis: “We are familiar with the application process for promotional loans and can communicate intensively with the house banks at this level. The partnership with KfW confirms this.”
For Hipp, it is important – especially in the present time – that the applications are correct “at the first shot.” Even during his time as CFO, he experienced that many companies and house banks were often overwhelmed with the preparation and processing of loan applications.
The KfW wants to become more digital
For FinMatch, the cooperation is likely to be valuable, especially for reasons of prestige. “KfW is the world’s largest national development bank and the third-largest bank in Germany. For us, the partnership with this renowned institution is a knighthood,” Hipp said
For KfW, the deal is a further step towards digitization. The promotional bank has made it its goal to make its own business more digital. In this context, the bank also wants to simplify the application and approval process between house banks and KfW, and this is the sweet spot of the Stuttgarter Fintech. “We are currently discussing the realization of a technical interface together with the KfW,” Hipp described the current status of the project.
His goal: “The entire application process from the platform to the house bank to the KfW is to become digital.” The partnership paves the way for this – not only for Corona emergency loans, but also for subsidies in the areas of ERP loans, energy efficiency and innovation.
FinMatch handled the largest financing via a fintech platform in Germany
According to own data, FinMatch straight active financing inquiries with a volume of approximately $410 million (€350 million) are present. Active financing inquiries are applications of enterprises, which were examined for their soil quality, and which were passed on then to the bank network, which consists up-to-date of approximately 250 members.
In the current year, financing with a volume in the three-digit million range has been concluded via the platform so far. In April, the Stuttgart-based company arranged its largest financing to date: for the Abeking & Rasmussen Schiffs- und Yachtwerft shipyard, it arranged structured financing for $236 million (€202 million). According to the Stuttgart-based company, this is the largest financing ever in Germany via a Fintech platform.
Nevertheless, the market for credit platforms is still in its infancy. For example, corporations with large treasury departments see little added value in using credit brokerage platforms. Many banks, on the other hand, still lack the will to go digital and cooperate with external platforms.
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First published in FINANCE, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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