European fintech company Younited has announced it has secured a €400 million ($464 million) warehouse financing facility from U.S. banking giant Citi, backed by its French and Italian consumer loan portfolios. The deal marks a major milestone for the Paris-based digital lender, which specializes in personal loans and credit services across Europe.
Warehouse financing allows firms to use existing assets as collateral to access short-term funding, providing Younited with greater liquidity to expand its lending operations amid growing competition in the fintech and consumer finance sectors.
The latest financing arrangement comes as Europe pushes to unlock more capital for consumer and business lending while strengthening its underdeveloped securitisation market. Policymakers and financial regulators have been urging alternative lenders to play a more active role in stimulating economic growth as traditional banks tighten credit conditions.
Fintech firms like Younited, leveraging advanced digital platforms and data analytics, have been steadily gaining ground against established financial institutions, offering faster and more flexible loan solutions tailored to modern consumers.
Younited’s Deputy CEO, Xavier Pierart, said the new Citi-backed financing facility complements the firm’s growing retail deposit base and adds crucial diversification to its funding strategy. “The signing of this warehouse financing facility complements Younited’s significant retail deposit funding base and provides significant diversification, while adding balance-sheet flexibility towards continued regular use of the public ABS market for refinancing transactions,” Pierart explained. The structure will allow Younited to more efficiently manage its balance sheet and maintain steady access to refinancing through asset-backed securities.
Industry analysts view the partnership as a sign of increasing confidence by major financial institutions in the stability and scalability of European fintechs. With demand for digital credit solutions continuing to rise, Younited’s strengthened capital position is expected to support its expansion into new markets and product segments.
The collaboration with Citi also demonstrates how global banks are deepening ties with fintech innovators to diversify investment opportunities and participate in the ongoing transformation of the European financial landscape