FinTecSystems, the German startup that provides critical data and analysis to the financial services industry, announced that it has closed a Series A investment round. The round is in the seven-figure range and is led by VC’s Littlerock and Ventech. Previous investors MenschDanke Capital and Heilemann Ventures have also participated.
The online lending market is growing. According to Bankenfachverband (BFACH) in Germany, every fifth consumer loan is now being processed online. The main players are banks that have lent around six billion euros in 2015 – this is an increase of about 20% compared to the year 2014.
FinTecSystems provides financial institutions with real-time financial data analysis that creates an accurate overview of a consumer’s financial situation and creditworthiness. Banks and financial services providers are able to process smart data-driven credit decisions through the analysis of the data provided by FinTecSystems’ platform, helping to minimise risk. If this technology is used for loan application process, startup founders assert that the time for the process will be reduced from weeks to minutes.
Stefan Krautkraemer, CEO and Founder of FinTecSystems: “We will now push through our ambitious plans for European expansion with our Series A round secured. It will also enable us to build on our reputation as a technological leader in the market. We successfully achieved last year’s challenge to establish FinTecSystems not only as a banking API expert, but also as a trusted credit data processor. We are very happy to be backed by a team of investors that are known for their entrepreneurial instinct, and who can pave a way for FinTecSystems to succeed internationally.”
FinTecSystems was founded in 2014 in Munich by Stefan Krautkrämer and Dirk Rudolf. Their products cane be used now in Germany and Austria. The biggest customers are Solaris Bank, account switching services Finreach, loans service Lendico and Deutsche Telekom. Earlier this year P2P-Banking.com – P2P lending marketplace news and review site – wrote, that Lendico uses FintecSystem’s solution to simplify the borrower application process. They can access online banking data of the applying borrower for the past 90 days. The service makes the postal submission of bank statements and certificates of salary via postal services redundant. This saves time and costs involved in the verification of the borrower’s loan application.