TrustBuddy, Europe’s leadning P2P lending provider listed in Sweden, announced today that it is applying for a Swedish License for Certain Consumer Credit-related Operations issued by Finansinspektionen (“FI”), the Swedish Financial Supervisory Authority, in order to operate as an authorised consumer credit institution.
After FI’s decision to reject the Company`s Credit Facilitator license application earlier this year, TrustBuddy has decided to exclusively conduct financial intermediation. This means that TrustBuddy is not taking any customer credit in their own book, but simply continue to convey loans between lenders and borrowers. TrustBuddy has during this period undergone extensive operational, financial and organisational changes in order to comply with FI’s rules and guidance.
Given the efforts and measures taken by TrustBuddy throughout the last months, we believe Swedish “Finansinspektionen” can have little to say against a license for financial intermediation. Such a license should be an important trigger for the TrustBuddy share, which is trading at only a fraction of the US listed alternative financing providers Lending Club and On Deck. Only one year, the TrustBuddy share traded at more than double today’s levels, despite the fact that the company has continued to grow strongly and has made two important acquisitions which expanded its business not only geographically but also into longer-term consumer loans and small-business loans.