Loanboox expands to Germany
Loanboox, the Swiss digital money and capital market platform for municipalities, cities, institutional investors and banks launched in 2016, handled over CHF four billion in requests in its first year.
In terms of the number of inhabitants in Switzerland Loanboox already has a 50 percent market share in this country, explains founder and CEO Stefan Mühlemann. 140 insurance companies, pension funds and banks are currently acting as capital providers on Loanboox. A year ago, they piloted with more than 30 local authorities. The aim of the digital platform is to bring public-sector borrowers together directly with institutional investors and banks.
The rapid growth in Switzerland has now motivated Loanboox to enter the German market as well. For this purpose, a branch office was founded in Cologne, where ten employees are already working at present. This is "a first milestone for further international expansion", as Mühlemann emphasizes. Other countries besides Germany are in the company's focus. By 2019, he even wants to be active throughout Europe with Loanboox.
In the pilot phase now underway in Germany, the company is targeting the roughly 11,000 German cities and municipalities. According to Andreas Franke, Loanboox's new managing director for Germany, there is great demand in the large neighboring canton. Representatives of German cities and municipalities complained that the supply of loans from banks was declining, while insurers and pension funds were expanding the offer.
It is difficult for cities and municipalities to tap directly into the offerings of insurers and pension funds, Franke adds. This is where the company comes in, offering "considerable efficiency potential" in the capital procurement process. The German market is a challenge, as competitors are already active there - in contrast to Switzerland, as Mühlemann explained at a recent media event.
