France's largest fintech, founded in 2009, is growing fast. It broke even in the first quarter of 2020. In 2019, it recorded NBI of around €42 million and granted €520 million in credit. The reasons for its success? Access to loan applicants' banking data and a booming B2B business.
The Second Payment Services Directive: a boon for Younited Credit
The second European Payment Services Directive (PSD2) has been the subject of fierce opposition between banks and fintechs offering new services to consumers. Access to banking data, hitherto a bank monopoly, was at the heart of this tug-of-war. Third-party service providers can now, with their customers' authorization, access their data.
Younited Credit has taken full advantage of this European directive. For example, it now offers its customers the option of sharing their history and connecting their account directly to its platform, in exchange for speeding up and simplifying loan applications. Customers no longer need to provide their statements, RIBs or pay slips, as all information is accessible to Younited Credit via its partner Linxo Group, which has been approved by the Autorité de contrôle prudentiel et de résolution (ACPR) to synchronize accounts and ensure secure access to banking data.
Two-thirds of French customers and 80% of Spanish customers agree to let fintech access their data.
Younited Business Solutions: a fast-growing B2B business
Younited Credit granted no less than 520 million euros in credit in 2019, and 15% of its revenues are now generated by its B2B credit or payment facility business launched 18 months ago. Younited Business Solutions targets banks, insurers, cell phone operators and merchant services, enabling them, via its "credit as a service" offering, to launch a consumer credit business without needing to obtain a banking license, all by making its proprietary technologies available. The service has already attracted partners such as N26, Conte.it, BPI France, Pitagora, Free and, very soon, HSBC.
France's biggest fintech is also present in Italy, Spain, Portugal, Austria and Germany. In Spain, it has developed a partnership with ING online banking, enabling customers to open an account while reducing their banking costs. At the same time, Younited Credit receives remuneration for each customer as a business introducer. This business model will be rolled out this year in France, Italy, Portugal and Germany.