Allow fintech lenders access to ECB facilities

Fintech lending as an industry growth has been stopped because banks have an unfair advantage.. They can borrow directly from the ECB at the absolute lowest rates.

In the meanwhile, fintech lenders struggle to raise capital because even if they reach scale they cannot access securitization markets due to the requirement that they have skin in the game (e.g. equity investment).

Competition against banks is stopped by

• Fragmented debt market

• Uncompetitive capital base (no ECB access; money has to be raised on private market where it competes with corporate bonds)

• Skin in the game (High capital investment that is unattainable by startups)

• Inability to insure risks at the portfolio level (e.g. if you are a 10M fund, you can only do max 250k loans because a single default will kill all your profitability of the fund)

This is the main reason why no startup has ever successfully competed in the corporate and large-SME banking segment.

Competition only takes place in small-SME segment, consumer and prosumer (freelancer).