• Subscribe
  • Contact Us
  • About LendIt Fintech News
  • Home
  • Menu Item
  • Menu Item
  • Menu Item
  • Menu Item

Lend Academy

LendIt Fintech News: Daily Coverage of Fintech & Online Lending


  • Editorial
  • Daily News
  • Podcast
  • Investor Forum
  • Events

What Aegon’s €1.5 Billion Allocation to Auxmoney Means for Online Lenders

Aegon has committed a significant amount of capital to German p2p platform Auxmoney.

February 6, 2017 By Ryan Lichtenwald Leave a Comment

Views: 147

Aegon_Auxmoney_1.5billion

A common question in the marketplace lending industry is what needs to happen for the industry to really hit its stride and reach massive scale. This is more important today since getting a loan online is becoming ubiquitous.  On the consumer side there certainly needs to be more education but on the funding side platforms need to engage the largest investors in the world. LendIt Co-Founder Jason Jones touched on this in a recent post on engaging the gatekeepers and educating them on marketplace lending.

Some of the largest money managers are insurance companies. Last month we learned that Aegon, a Dutch insurance company (and parent company of Transamerica) was allocating €1.5 billion to German p2p lender Auxmoney. This is the largest publicly announced commitment we’ve seen to date from a single investor in the marketplace lending industry. Aegon had previously committed €150 million to the auxmoney platform in 2015. Another large deal in the US was announced in November, 2016 when Lending Club secured a $1.3 billion commitment from Credigy.

According to the announcement from Aegon and Auxmoney, the funds will be deployed over the next 3 years. Aegon also lead a new €15 million Series E investment in the company.

Conclusion

While the amount was a surprise, it was not unexpected that Aegon would expand their footprint in marketplace lending. Insurance companies, particularly those in Europe, have a problem. They desperately need fixed income yield but many of the traditional avenues have yields close to zero. This will not likely change any time soon in Europe.

Large firms such as banks, insurance companies, pensions etc. are going to increasingly play a role in the marketplace lending industry. It remains one of the best fixed income alternatives. I believe this is just the start of many deals that will eventually be announced as firms like Aegon become aware of the value that many marketplace lenders offer.

Filed Under: Peer to Peer Lending Tagged With: Aegon, auxmoney, Loan purchase

Views: 147

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Investor Intelligence

Peter Renton's Returns

Investor Forum

Lending Club Review

Prosper Review

Investor Resources

Most Popular Editorials

The Pure Marketplace Lending Model is Dead, the Hybrid Takes its Place

The 2018 Lending Club and Prosper Tax Guide

My Returns at Lending Club and Prosper

Map of Available States for Lending Club and Prosper Investors

Banks and Marketplace Lending Platforms: Ideal Partners?

Subscribe to the Podcast

Subscribe to the Lend Academy Podcast on iTunes
Subscribe to the Lend Academy Podcast
List of Podcast Episodes

Archives

Follow @LendAcademy Follow @LendIt

ABOUT LENDIT FINTECH NEWS

LendIt Fintech News, Powered by Lend Academy, has been bringing you all the news and information about fintech and online lending since 2010 when it was founded by Peter Renton. We not only have the industry’s most active news site, but also the largest investor forum and the first and most popular podcast.

We are a team of fintech enthusiasts who have been covering the industry for many years. With a deep knowledge of online lending, digital banking, blockchain, artificial intelligence and more our team covers the daily news and writes in-depth editorials.

Recent Editorials

  • Top 10 Fintech News Stories for the Week Ending January 16, 2021
  • Podcast 281: Sean De Clercq of Kickfurther
  • Upgrade Launches a Rewards Checking Account
  • Affirm’s IPO Takes Off Like a Rocket Ship
  • Fintech Lenders and Banks Are Ready for PPP Round Two

Copyright © 2021 · Metro Pro Theme on Genesis Framework · WordPress · Log in