Bunq has become one of the first European digital banks to enter the mortgage market with an announcement that they plan to start lending €100m in their native Holland; this will not be a direct to consumer strategy, instead Bunq will work with brokers, although they did say they may offer mortgages directly at some point; the digital bank has €433m in assets primarily held in European Central Bank bonds and will be diverting around 25% of these deposits into a real estate fund; the expected annual return on Bunq’s mortgage fund is 0.7% as they opt for low-risk, low-interest mortgages; what’s more, the Dutch government has protections in place that will protect two-thirds of Bunq’s home loan portfolio in case of default. Sifted.
Peter Renton is the chairman and co-founder of LendIt Fintech, the world’s first and largest digital media and events company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series. Peter has been interviewed by the Wall Street Journal, Bloomberg, The New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, the Financial Times, and dozens of other publications.