Postfinance, the banking division of the Swiss Post, has agreed to buy a stake in a fintech company in a bid to diversify further its sources of income.

Postfinance acquired a minority stake in Tilbago, a Lucerne-based software company that develops solutions for debt collection, the company said in a statement today.

The Tilbago software shortens the debt collection process by way of employing electronic communication channels with the debt enforcement offices. Each year, Swiss offices process 2.8 million debt enforcements.

Diversification

Postfinance will link the Tilbago software with its own SmartBusiness, a receivables management software launched in August 2015.

The acquisition is part of the Postfinance strategy to diversify its income structure. The company currently generates about two thirds of its income from the interest differential business. PostFinance wants to tap into new sources of revenue in which non-interest income can be generated. The participation in Tilbago promotes this diversification of income, the company said.