In industry-first the Dutch fintech will start to offer mortgages to its users from early next year, as it seeks to challenge traditional banks’ grip on the home-lending market
Amsterdam, 9 December 2021 - bunq has announced that it will become the first European digital bank to start offering mortgages. The fast-growing challenger has teamed up with Dutch lending platform Tulp to deliver the service, which it expects to roll out in early 2022.
Mortgages are increasingly seen as the next battleground for digital banks around the world, representing an opportunity to onboard users for the long-term and offering a source of sustainable income in an industry where many struggle to turn a profit. By taking the first steps into mortgage lending, bunq has once again shown itself to be at the forefront of innovation in digital banking.
Ali Niknam, founder and CEO of bunq, said: “At bunq we are constantly innovating and evolving to serve our users. Becoming the first digital bank in Europe to offer our users mortgages is an incredibly exciting development for everyone at bunq”.
Paul Wessels, co-founder and CCO of Tulp Group, said: “Tulp is excited to support bunq to become a successful new lender in the Dutch market. This partnership is a great opportunity for the further positioning of our existing Dutch lending platform.”
bunq’s mortgages will initially be available in the Netherlands. Approximately two-thirds of bunq’s home loans on its balance sheet will be covered by the Dutch government’s insurance scheme, which guarantees homes up to €355,000 (amounts for 2022) in the event the borrower defaults.
About bunq
Founded in 2012 by serial entrepreneur Ali Niknam, bunq has brought lasting change to the European banking industry. By having its users at the heart of the business and building a product rooted in their wants and needs, bunq quickly scaled to become the second largest neobank in Europe. Serving digital nomads across Europe, bunq makes life easy for location-independent people and businesses starting from the way they manage money: how they spend, save, budget and invest.
Pioneering many things considered impossible, bunq was the first bank to get a European banking permit in over 35 years, raised the largest series A round ever secured by a European fintech (€193 million), and was the first EU neobank to achieve structural profitability at the end of 2022. On its mission to build the first global neobank for digital nomads, in April 2023, bunq announced its bid to enter the US market by applying for a banking license.
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