Volkswagen Bank launches instant express loan offer with Credi2

Credi2, a Viennese FinTech specialising in white label solutions in the BNPL, counts among its clients renowned groups such as Apple, Raiffeisen Bank, Deutsche Bank and Volkswagen Bank. The latter has just increased its stake in the FinTech capital and announced at the same time the launch of their joint instant loan offer. This will further impose BNPL in the mobility sector.

FACTS

• Volkswagen is thus increasing its stake to 28% in the capital of Vienna-based FinTech Credi2; its first equity investment was 20% in 2019.

• This rapprochement also pushes the two players to strengthen their collaboration by launching a new offer. Volkswagen Bank is indeed presenting an instant express loan in partnership with Credi2.

• The target group? The customers of the group's car dealers, namely the Volkswagen, Audi, Skoda, Seat and Ducati car brands.

• Special features of the offer:

  • a 100% digital solution,

  • financing of up to €12,000 to carry out repairs to one's vehicle or to buy electric scooters and accessories at the dealerships,

  • approval in less than 15 minutes.

• However, this financing is not dedicated to the purchase of a car.

CHALLENGES

• Boosting the activity of its network: This partnership is presented as a way for the group's dealer customers to increase their sales and attract new prospects, thanks to a practical and accessible financing solution.

• Strengthening a cooperation through BNPL: The new offer presented today by Volkswagen Bank and Credi2 is similar to the "Finance A Bike" offer already launched in 2021 by both partners.  This financing offer was also available for an amount of up to 12,000 euros, but was then reserved for the purchase of a bicycle in more than 1,000 bicycle shops in Germany.

• Continuing to roll out its banking offering: As a financial captive, Volkswagen Financial Services is now continuing to expand its financial services offering, having launched a business expense management solution in May 2021 for example.

MARKET PERSPECTIVE

• The growth of BNPL has allowed new players to develop customer-facing offerings. However, the financial crisis has complicated the situation for these alternative players, particularly due to the increase in non-payments and the decrease in financing. Today, the extension of the Credi2 model, in white label, is giving back legitimacy to traditional players, such as Deutsche Bank, who are enhancing their expertise as credit intermediaries.

• This financing solution is also being extended to new targets, with a BtoB offer that makes it possible to streamline the settlement of small and medium-sized businesses. These BNPL solutions are also offered to help SMEs manage their cash flow, for example.