Lendify plans to enter Sweden’s $350 billion mortgage market within a few years, promising to intensify competition in a market where major banks are already losing volumes to niche players, according to Bloomberg.
The company, which relies on peer-to-peer lending and institutional capital for funding, plans to add home loans to its existing offering of consumer loans in the next 3-4 years, Chief Executive Officer Nicholas Sunden-Cullberg said in an interview in Stockholm. Its automated processes mean it can handle loans at a fraction of what it costs the big banks, resulting in lower interest rates.
That would add a fresh threat to Swedbank AB and Svenska Handelsbanken AB, the largest mortgage lenders and whose market shares are under increasing pressure from all corners of the market. Competition comes both from established niche lenders such as SBAB and Lansforsakringar, new entrants such as mortgage fund Stabelo, as well as SEB AB and Nordea Bank Abp, traditional lenders that are now pushing to regain lost mortgage volumes.