Amsterdam’s fintech unicorn Bunq is the first digital bank in Europe to offer mortgages


Challenger bank based in Amsterdam bunq has announced that it will be the first European digital bank to offer mortgages. Neobank has joined the Dutch credit platform tulip to provide the service to be rolled out in early 2022.

The Dutch fintech will offer its users mortgages from the beginning of next year in order to question the influence of traditional banks on the housing market.

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First digital bank to offer mortgages

Mortgages are viewed as an uphill battle for digital banks around the world, offering an opportunity to engage users over the long term and providing a sustainable source of income in an industry where many are struggling to make a profit. With the first steps in mortgage lending, bunq wants to be at the forefront of innovation in digital banking.

Bunq founder and CEO Ali Niknam says, “At bunq we are constantly innovating and evolving to serve our users. To become the first digital bank in Europe to offer mortgages to our users is an incredibly exciting development for everyone at bunq. “

The company’s mortgages will initially be available in the Netherlands. About two-thirds of bunq’s home loans on the balance sheet are covered by the Dutch government’s insurance system, which guarantees houses up to € 355,000 (amounts for 2022) in the event the borrower defaults.

Regarding the development, Paul Wessels, Co-Founder and CCO of the Tulp Group, added: “Tulp is pleased to support Bunq in becoming a successful new lender in the Dutch market. This partnership is a great opportunity for the further positioning of our existing Dutch credit platform. ”

About the Tulp Group

Founded in 2015, the company is a private credit platform. It offers mortgage loan and finance management services. Tulp enables parties to build and manage mortgage portfolios in the Netherlands.

The company is active in the Dutch residential mortgage and buy-to-rent market. Tulp claims it was the first lender to introduce mortgage financing under the De Nederlandse brand. With four securitisations in the market and an upcoming fifth, Tulp is an active player in the international financial markets.

Securitization is the financial practice of consolidating different types of contractual debt, such as a residential mortgage, commercial mortgage, auto loan, or credit card debt, and selling the corresponding cash flows as securities to third party investors.

European challenger bank bunq

The European challenger bank bunq was founded in 2012 by Ali Niknam. The entrepreneur initially invested 98.7 million euros of his own money in the development of bunq. Neobank claims this gave it the freedom and independence to build a bank that is anchored in the wants and needs of its users.

The Dutch fintech company turned out to be the only self-financed challenger bank that had branches in 30 European markets without a cent in VC funds. In April 2021, their deposits exceeded 1 billion euros for the first time, after doubling in 2019 and then again in 2020.

In early July 2021, bunq announced the largest Series A round ever secured by a European fintech. As part of a deal with British private equity firm Pollen Street Capital, she raised $ 193 million.

Bunq is currently available in 30 European markets, including the Netherlands, Germany, Austria, Italy, Spain, France, Belgium, Ireland, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, Greece, Hungary, Latvia, Lithuania, Luxembourg, Malta, Poland, Portugal, Romania, Slovakia, Slovenia, Sweden, United Kingdom, Norway and Iceland.

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