Banco BNI Europa invests $30m in US consumer loans
Banco BNI Europa and Fintex have teamed up to invest in Upgrade’s consumer loans as they look to profit from the US lending market.
This loan purchase programme was implemented by Fintex, which issued a bond to BNI Europa backed by the portfolio and Fintex acts as asset manager for the underlying loans.
As part of the agreement, BNI Europa committed an initial sum of $30 million. It has already invested in US consumer loans originated on platforms like Lending Club and Prosper through a third-party fund.
Pedro Pinto Coelho, executive chairman of BNI Europa, says: “We consider Upgrade to be different from other consumer loan offerings in light of its focus on borrower free cashflow as a key metric. We’re also supportive of Upgrade’s credit education initiative, which provides much needed advice and assistance to US borrowers as to how they can improve their credit health.”
As reported in April, Renaud Laplanche, the former co-founder of Lending Club, was rebuilding his reputation with Upgrade.
In May 2016, Laplanche resigned following an internal review of sales of $22 million at Lending Club in near-prime loans to a single investor, in contravention of the investor’s express instructions.
With the money from BNI Europa, it looks like Laplanche’s Upgrade is making the grade.