Fintech is not e-commerce

by Teddy Amberg*

Internet shopping has become a regular habit for most of us. We buy shirts and shoes via internet and book flights and hotels mostly online. Many of these purchases are made using mobile devices.

Financial investments are a matter of trust

Financial investments, however, are a matter of trust. Buying a t-shirt on your smartphone while you are waiting for the bus? No problem. But investing CHF 100,000 for my retirement savings plan? Rather not.

For financial investments, a nice website it not enough. Fintech companies have to build up trust first. For this, CreditGate24 has implemented a number of features to protect lenders:

  • All loans on the platform are underwritten and receive a rating based on their individual risk/return profile
  • Our proprietary, highly automated credit scoring system is based on established credit assessment tools, enhanced with big data analyses
  • Our ZEK membership (Swiss center for creditworthiness information) and our direct link to the leading banking credit information providers give us access to the relevant data about our borrowers
  • Loans to natural persons are insured
  • Our solidarity arrangement spreads the risks per rating to prevent a total loss
  • Loans rated AAA are always backed by a collateral, for example real estate

Over the last one and a half years we have provided more than 170 loans to individuals, self-employed and SME in Switzerland – to date without a single default.

The requirements for us in terms of credit scoring, regulation, IT security, data protection, compliance and risk management are high. We gladly meet them in order to build-up a sustainable business model. And to gain our clients’ trust.

*Teddy Amberg is a partner at CreditGate24 and is responsible for business development.