Loanboox, a Zurich-based financing platform, has been inundated with requests from customers. The fintech company is determined to go it alone.
Cooperation, not disruption – that's what finews.ch said the Swiss fintech industry would be about in coming years. Instead of competing with established players, startups tend to look for the safe haven these companies seem to provide.
Loanboox may be the exception to the rule. The Zurich-based fintech launched its services last September. The aim was to digitize and centralize the financing of public projects, cutting out middlemen.
Big Savings Possible
The company promises to shorten the tendering process by 90 percent through the digital offering, with a reduction of the commissions charged by a similar margin. Potential investors get an easy and free access to potential loan takers.
The service has proved to be a hit. The volume of financing requested via the platform has reached a billion Swiss francs in the four months since the launch, according to Stefan Muehlemann, founder and boss of the startup.
Figures are hard to get by in the emerging market of lending and borrowing. Companies such as Cashare, CreditGate24, Creditworld, Swisspeers and Lend are others trying to establish themselves.
Big Projects
Loanboox has the advantage of size. The volume of the financing sought on his platform averages is anything between 500,000 francs and 100 million francs.
The instant success is encouraging Muehlemann to continue on the path his chosen for the company. He says that about 20 percent of all public authorities are signed up. He aims for a market share of 80 percent, he told finews.ch in an interview.
Hiring New Staff
To cope with the demand, Loanboox needs to hire more staff. Muehlemann is currently looking for programmers and experienced brokers.
The company also receives customers that the founder hasn't planned for. Companies are starting to invest their liquid assets for short-term purposes with Loanboox, Muehlemann said. They are forced to pay an interest on their liquid assets, but substantially less than at the commercial banks.
Remaining Independent
Several banks have been in touch with the startup and asked for refinancing via the Loanboox platform. The refinancing is often conducted via the telephone. Muehlemann is considering whether he wants to expand his services into this segment.
The founder of Loanboox doesn't so far plan to sell a share of his company to an established player. «We are concerned that this would weaken our role as independent platform.»
