FinTech provides instant B2C, B2B lending solution


Regulated, instant, no limit on amount or duration.

Those are three elements that, according to Charles Egly, co-founder and group CEO of Younited Credit, differentiate his company’s solution from that of traditional lending firms or buy now, pay later (BNPL) players operating across the region.

“It’s a loan [product] to buy electronics or other goods and it is always a regulated solution. So in that sense we are very different from the BNPL providers who mostly offer unregulated solutions [to consumers]’ Egly said in an interview with PYMNTS.

Another feature that distinguishes the Paris FinTech unicorn from BNPL players is the size of the loans disbursed. While the average loan amount from BNPL firms ranges from €20 to €100 with short terms ranging from a few weeks to a few months, he said Younited can offer instant loans of up to €50,000 ($56,000) or more with a term limit and a payback period of one month up to 84 months.

Egly added that the European instant loan provider also places a strong emphasis on responsible, ethical and transparent lending, and is using the revised Payment Services Regulation (PSD2) and Open Banking Application Programming Interfaces (APIs) to ensure its data-driven offering is in place be in a quantity that users can afford.

“With your main bank account login and password, we can retrieve your banking history [of up to 12 months and] This information allows us to accurately rate you in two seconds. This is the instant loan product we invented, with virtually no limit on amount or term,” noted Egly.

Thanks to PSD2 and Open Banking, even people who don’t have a typical profile or regular income can score with just a month of banking history, he said.

Related news: Instant loan provider Younited is expected to hit $5.7 billion in GMV in 2022

To date, the French company, founded in 2009, has issued more than 2.4 billion euros ($2.69 billion) in loans and posted annual sales of over 150 million euros ($168 million) last year. .

The company currently covers 60% of the European market with offices in four countries outside France – Italy, Spain, Portugal and Germany – and plans to expand geographically to reach 80% of the regional market by 2025.

Balanced B2C and B2B offers

From a business-to-consumer (B2C) offering, the European company has expanded into the business-to-business (B2B) space, extending its solution into a range of third-party products through partnerships with banks such as N26 in Germany and France embedded Fortuneo, FinTech companies like Lydia and Apple Premium Reseller.

“In 2021 [our B2B offering represented] between a quarter and a third of our GMV [Gross Merchandise Value] and revenue, and the idea is to have a very balanced model with 50% direct-to-consumer and 50% through partnerships,” he explained.

And now that Younited Credit has firmly established its product and market viability, Egly said its primary focus is on achieving high rates of growth and expanding its presence in the markets in which it operates, while maintaining a solid reputation and a solid brand to be maintained.

“Good customer service quality is very important to us,” he said. “To date we have a Trustpilot score of 4.8 and the idea is to maintain that score or even increase it, which isn’t easy when you’re growing fast.”

Starting next year, the company will expand its services into new markets, targeting one new country from a short list of countries including the Netherlands, Austria, Poland, Romania and the United Kingdom in 2023, 2024 and 2025 respectively.

And regardless of which market the company lands in, its top priority will be to use its European Central Bank (ECB) lending institution license to offer “regulated solutions.”

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About: Forty-two percent of US consumers are more likely to open accounts with FIs that make it easy to automatically share their banking information during signup. The PYMNTS study Account opening and credit management in the digital environmentsurveyed 2,300 consumers to explore how FIs can use Open Banking to engage customers and create a better account opening experience.


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