P2P Lending Platform Fellow Finance Enters Swedish Market

The Finland-born P2P lending platform Fellow Finance aims for Sweden. They will be connecting their individual and business customers with potential investors on this market. Strategic expansion for this company as they intend to become the leading crowdfunding and crowdlending platform in Northern Europe.

Fellow Finance was founded in 2014 in Finland. It then reached out for Sweden, Germany and Poland. They already intermediated over €270 million in funding, allowing them to stand out as the main P2P lending platform in Northern Europe. Their entering Sweden comes as a logical continuation considered their success in Finland (39% market share in 2017 according to the Bank of Finland).

For all investors from roughly 50 countries, this expansion is an opportunity to address the Swedish market for consumer lending. In this context, Fellow Finance will first be proposing P2P lending services for individual borrowers, but plans to add a financing option for businesses, too.

This solution allows investors to easily diversify their assets, without intermediaries being involved: a way for Fellow Finance to distinguish themselves from conventional financing channels, including banks and credit institutions.

Comments – Scandinavia: an attractive market for customer lending companies

Fellow Finance claims nearly 376,000 borrowers and lenders, €270 million in funding and more than 2,405,000 investments in different loans. They see themselves as a leading e-lending company in Northern Europe.

Also, this platform has been announcing several partnerships. Banco BNI Europa, for instance, started investing in loans through their platform in Finland earlier this year. Via this FinTech, they indirectly entered the markets for consumer credit and SME lending in Northern and Central Europe. By way of reminder, BBVA selected Fintonic to propose credit services to this aggregator’s customers in Spain.

Scandinavia is viewed as a high potential market, and an attractive target for payment and credit companies, including Revolut and Klarna, who also rolled out financing services in this region recently.