German peer-to-peer lender Auxmoney has partnered with BNP Paribas to back loans through its own marketplace.
The consumer lender will use funding from BNP Paribas to invest up to €500m (£447m) in its own loans as part of the partnership.
It is the first time Auxmoney will invest in its own loans.
“With this step, we are further matching our interests with those of our marketplace investors,” Raffael Johnen, chief executive of Auxmoney, said.
“This alignment is a major quality seal underpinning our growth trajectory.”
“We are setting Auxmoney up to originate in the billions.”
Manish Chandra, head of ABS financing Europe at BNP Paribas, said the bank was “excited to cooperate with one of the leading European fintechs.”
“The strength of Auxmoney’s origination platform, underpinned by a robust and digital credit scoring model, has allowed it to consistently provide credit to consumers and self-employed in Germany over a number of years including through this most recent crisis,” Chandra added.
“We are and look forward to the partnership with Auxmoney and its new majority shareholder Centerbridge“.
It comes as Centerbridge became the new majority shareholder of Auxmoney after leading a €150m (£133m) equity fundraising round in September.
Existing venture capital backers including Foundation Capital, Index Ventures and Union Square Ventures, remain fully invested.