(Reuters) -Fintech firm Younited, which provides personal loans and credit, announced it secured a 400 million euros ($464.48 million) warehouse financing facility with U.S. bank Citi, backed by French and Italian consumer loans.
Warehouse financing is a short-term financing option in which businesses can use their inventory as collateral.
WHY IT’S IMPORTANT:
Younited’s latest financing comes as Europe tries to free up more capital for lending and boost its underdeveloped securitisation market in order to spur sluggish economic growth.
Moreover, in recent years, fintech companies and neo-banks, with their digital technologies, have gained market share from older, more established players.
KEY QUOTE:
“The signing of this warehouse financing facility complements Younited’s significant retail deposit funding base and provides significant diversification, while adding balance-sheet flexibility towards continued regular use of the public ABS (asset-backed securities) market for refinancing transactions,” said Xavier Pierart, Deputy CEO of Younited.
($1 = 0.8612 euros)
(Reporting by Sudip Kar-Gupta; Editing by Vijay Kishore)
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