Mbanq has received the first investment in its newly established institutional funding program from an undisclosed Swiss private bank.
The U.S.-based banking infrastructure company will use the program to support the continued growth of its lending and Earned Wage Access offerings.
Earned Wage Access enables employees to obtain part of their already-earned compensation before their scheduled payday. Banks, credit unions, financial technology companies and employers can use Mbanq’s infrastructure to provide the service.
The funding program has an aggregate capacity of up to $100 million and is structured through U.S. dollar-denominated loan participation notes admitted to trading on the Open Market of the Düsseldorf Stock Exchange.
Loan participation notes generally provide investors with economic exposure to an underlying portfolio of loans or other credit assets. The structure gives Mbanq a scalable source of capital that can be used as demand for its lending products increases.
Encore Issuances issued the notes through a designated compartment. Barons Capital Partners advised on the transaction, while Addleshaw Goddard served as legal counsel.
Chartered Investment Germany is acting as servicer and calculation agent, Baader Bank is serving as custodian and paying agent, and ICON Asset Management is providing risk monitoring services.
Founded in 2016, Mbanq has operated profitably since 2019. Its platform provides core banking technology, Banking-as-a-Service, Lending-as-a-Service, compliance infrastructure, payments, card issuance and embedded finance capabilities.
The company serves banks, credit unions, fintech businesses and enterprises through operations spanning the United States, Europe and Asia.
KEY QUOTE:
“This inaugural institutional investment represents an important milestone for Mbanq. It demonstrates confidence in our long-term strategy and strengthens the financial infrastructure that supports our lending business.”
“As demand for Earned Wage Access and other lending solutions grows, we’re investing in the capabilities that enable our clients to scale with confidence.”
Vlad Lounegov, CEO of Mbanq
