FinTechSystems secures Series A investment to bring real-time credit checks to major banks, a move that could cut wait times from weeks to minutes
Munich-based FinTecSystems is eyeing the UK and wider global finance market, following its successful Series A fundraise in the seven-figure range.
Founded in 2014 in Munich, FinTecSystems provides financial institutions such as banks with real-time financial data analysis that creates an accurate overview of a consumer’s financial situation and creditworthiness.
Using FinTecSystems’ technology, the loan application process is reduced from weeks to minutes.
Customers of FinTecSystems include Solaris Bank, account switching firm Finreach, loan provider Lendico and Deutsche Telekom.
“We successfully achieved last year’s challenge to establish FinTecSystems not only as a banking API expert, but also as a trusted credit data processor,” Stefan Krautkraemer, CEO and founder of FinTecSystems, said.
According to Parisian venture capital firm Ventech’s managing partner, Christian Claussen, technology like this is long overdue. “The digitisation of the financial industry was long overdue and thankfully it is now speeding up. We are convinced of companies like FinTecSystems that provide solutions for a sustainable digital infrastructure in the financial industry,” he commented.
The online lending business is a growing market. According to Bankenfachverband (BFACH) in Germany, every fifth consumer loan is now being processed online.
The main players are banks that have lent around six billion euros in 2015, an increase of about 20 percent compared to the previous year.
This development, the BFACH said, has slowed down mainly due to media disruption within the loan application process.
The process itself often requires written form and manual input, which clashes with the speed of service digitisation can bring.
In the UK, alternative lenders can provide smaller loans within hours, depending on the risk involved. Traditional lenders still take weeks to run due diligence checks. This technology could cut that time significantly.