The wave of layoffs in the German fintech industry continues. According to exclusive information from Finanz-Szene, the Berlin-based comparison portal Smava, which specializes in brokering consumer loans, is parting ways with a tenth of its staff, which numbered just under 1,000 according to the latest figures. As it is said, practically all ranges are to be concerned.
After Klarna, Trade Republic, and Bitpanda, Smava is the next well-known financial startup to part with a large number of employees. However, the layoffs not only shed light on the current problems of the Berlin fintech scene. However, they are also likely to be an indication that the difficult overall economic situation could sooner or later become a serious burden on the consumer credit business – a market that, according to Bundesbank figures, last came to a total volume of €233 billion and in which quite a few major players cavort in this country, from the two alliances to large foreign banks such as Santander or Targobank.
Read more about Smava and find other business news with the Born2Invest mobile app.
Banks are becoming more restrictive – with consequences for portals like Smava
According to statements from the industry, demand for consumer loans remains high. In fact, the Bundesbank’s Bank Lending Survey recently found that demand for loans was rising, partly because many people are finding it increasingly difficult to finance their expenditure from their household income alone in view of the rising cost of living. At the same time, however, the banks stated in the survey that the creditworthiness of prospective borrowers was tending to decline (logical when disposable income is falling).
As a result, lending standards are being tightened and the proportion of completely rejected loans is increasing. Comparison portals such as Smava or Check are not likely to be affected quite as much by this development, at the moment, because they can still route their customers to another bank if they are rejected. However, the more banks become restrictive in granting loans, the more difficult it will be for intermediaries to maintain their business cloak.
Credit comparison portals had already suffered particularly badly from the Corona crisis. At the time, Hamburg-based provider Finanzcheck, which was later swallowed by Smava, was among the first fintech companies to lay off employees. In the course of the merger of Smava and Finanzcheck, another 50 employees had to leave in April last year. Nevertheless, the Berlin-based company has recently been able to close the gap on market leader Check24 – based purely on its consumer credit business. In an exclusive interview with Finanz-Szene, Smava CEO Alexander Artopé provided earnings figures in May for the first time in years. According to these figures, the fintech company, which was founded in 2007, generated revenues of €162 million last year. To put this in perspective, we estimate Check24’s revenue in this area at a very rough €200 million.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in finanz-szene, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
After Obtaining Endorsement as a Fintech, Klu Will Seek to Become a Sofipo
In addition to seeking the acquisition of a Sofipo, Klu will also start operations with a company it recently acquired...
First Condominium of Tokenized Houses Launched in Brazil
The concept of including luxury homes in condominiums is not new, but the tokenization of multiple properties is. Viverde will...
Cannabis Legalization in Ukraine Delayed by Opposition Party
Opponents of the bill are using time-consuming legislative tactics to delay its passage. These actions include submitting hundreds of amendments...
Laboratorios Rubió Increases Sales by 40% in 2022 and Exceeds €100 million
Laboratorios Rubió, founded in 1968 by the brothers Salvador and Pelayo Rubió, has its headquarters in Castellbisbal (Barcelona). The company has a...
“People Mobil Herzogenrath” Was Created Through Crowdfunding
The application to “Aktion Mensch” was ultimately successful, which granted “People mobil Herzogenrath” €52,000, which could be used to order...
Cannabis2 weeks ago
U.S. Giant Constellation Brands Scaling Back Cannabis Investments
Crypto6 days ago
Bitcoin to Pause and Recharge: Florian Grummes Predicts a Brief Respite before the Next Bull Run
Impact Investing1 week ago
Why the European Biosolutions Coalition Is Important
Crypto2 days ago
Cosmos Cryptocurrency Will Reduce Inflation Rate