Covid-19 Impact on Banks, And fixes. The Black Swan Opportunity

Download Now

The Black Swan Opportunity | Get your bank digital ready.

IBSI Special 5 Digital Report Package with Special Offer. Subscribe now

IBS Journal: The iconic monthly FinTech magazine

May 2020 issue out now! Subscribe now

India FinTech Report 2020

Insights into the historical and projected market size of key FinTech categories. Subscribe now

Kreditech gains microfinance licence in Russia

Kreditech Russia, a subsidiary of the Kreditech Group, has been granted microfinance status by the Central Bank of Russia.

New federal laws enacted in the country have aimed to make the microfinance market more stable and transparent. All alternative lending companies operating in Russia are required to gain the new status. Kreditech Russia will be offering both consumer credit and deposit services.

The granting of microfinance status – a rare occasion according to Kreditech – is down to its strong capitalisation, risk management and governance. Rene Greimens, CFO at the firm, hails the news as “an important milestone for the Kreditech group”.

Dmitry Selivanov, Director at Kreditech Russia, adds: “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 launched its Russian subsidiary in 2013, operating under a MicroFinance Organisation (MFO) licence prior to achieving the new status. The group has processed more than four million loan applications to date through its regional subsidiaries in Russia, Poland, Spain, Czech Republic and Mexico.

The German alternative lender has come under fire in its home country for “dubious” consumer protection protocols and the offering of high-interest short-term loans. While it no longer offers such service in Germany, Kreditech is still criticised for offering short-term loans with yearly interest rates of several thousand percent in Poland and Mexico.

Related IBS Intelligence Research​

Related Posts