Blender, an international consumer e-lending platform, has garnered a new license to operate as a financial institution in the European Union – the license recognizes Blender as an E-Money Institution, which includes a range of banking activities for the group, per a company statement.
In particular, Blender can now grant loans, transfer funds between customers and service the platform to other companies. Moreover, the licensing agreement also allows for the execution of most banking activities, except leveraging deposits.
The license represents a significant stroke for Blender as it looks to solidify its presence in the EU. The group will now be able to offer end-to-end solutions to third parties, also providing a multitude of new financial products that includes platform services to companies, money transfers, and various investments. Blender is currently active across Italy, Israel, and the Baltic Region.
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According to Gal Aviv, CEO and co-founder of Blender, in a statement on the license: “The license will enable lenders from around the world, including the UK, to be lenders in countries we are currently operating in (Israel, Italy and the Baltic Region), and in additional countries we tend to operate in, in the future.”
“By using Blender, lenders can enjoy higher yields than most financial instruments available in the market today in a liquid alternative asset class. Lenders that will invest in the platform, will be able to enjoy interest rates of approximately 8%-10% annually. This license is part of our international expansion strategy.”
“Being eligible for this license requires compliance with the highest regulation standards, including strict internal controls. This is an important milestone when working with international financial institutions,” he added.
Mr. Aviv previously spoke with Finance Magnates about the growing trends in the non-banking lending system landscape.