Hamburg/Moscow, March 30 2017 – Kreditech Group’s subsidiary, LLC MFC “Kreditech Rus”, received the status of a Microfinance Company (MFC) on March 27, 2017 from the Central Bank of Russia. A new federal law in Russia aims to make the microfinance market transparent and understandable. It therefore requires the MFC status for all alternative lending companies operating in the country. As a Microfinance Company, Kreditech Russia is going to offer consumer credit and investment products.
The Central Bank of Russia issues this status on a very restrictive basis. Kreditech is one of the few companies in the market to have successfully completed the process. The status is – among many other factors – based on Kreditech’s strong capitalization, risk management, governance, prudent financial policies and strong owner support.
Rene Griemens, CFO of Kreditech said: “We are very proud to be amongst the exclusive group that was granted the status as a Microfinance Company in Russia. This is an important milestone for the whole Kreditech Group, confirming the trust in our business.” Director of Kreditech Russia, Dmitry Selivanov, added: “The MFC status allows us to further grow the business while improving borrowing conditions for our customers and offering them better products going forward.”
Kreditech Group launched its Russian subsidiary in 2013 and was operating under a “MicroFinance Organisation” (MFO) licence prior to achieving the MFC status. The Group has to date processed four million loan applications through its five subsidiaries, including Russia. It generated an origination volume of EUR 125m in 2016.
Kreditech Group’s mission is to improve financial freedom for the underbanked by the use of technology. Combining non-traditional data sources and machine learning, the Company provides better access to credit and a higher convenience for digital banking services. The product offerings include consumer loans, a digital wallet and a personal finance manager designed to help customers manage their credit score and plan their spending. Kreditech also offers a “credit as a service” model, allowing partners to integrate its credit products as payment method or funding source. Founded in 2012 and headquartered in Hamburg, Germany, the Company is led by CEO and Co-Founder Alexander Graubner-Müller. It is financially backed by world-class investors including J.C. Flowers, Rakuten, Peter Thiel, and the World Bank’s IFC.