The Lending Bet bunq No Longer Wants
Hey Digital Banking Fanatic!
bunq is putting its Irish lender Capitalflow up for sale, and it's stepping back from direct lending in Ireland.
The Dutch neobank acquired Capitalflow in late 2021, betting that commercial lending would become a key part of its growth strategy. Under bunq's ownership, the Dublin-based lender scaled fast: the loan book grew from €414M to over €1.2B, and it launched buy-to-let commercial mortgages along the way.
A sale was on the cards in 2023, but bunq shelved the plan after resolving an internal shareholder dispute.
Now it wants out of the commercial lending side, but it's not leaving Ireland. bunq is keeping local Irish IBANs and competitive rates to win primary accounts. A retreat from balance-sheet lending, but a sharper focus on what a digital bank actually does best.
Strategic cleanup or a broader rethink of how far a neobank should stretch its balance sheet?
See what else is shaping Digital Banking. 👇
See you tomorrow!
Cheers,
NEWS
🇳🇱 Dutch FinTech Bunq has put Irish non-bank lender Capitalflow up for sale, with non-binding offers received earlier this year and final bids expected before year-end. Bunq acquired Capitalflow in 2021, and the lender currently manages a loan portfolio of around €1.2 billion.
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