Bunq, a Netherlands-based digital banking startup, is entering the mortgage market through a partnership with Venn Hypotheken, a subsidiary of insurance giant Nationale-Nederlanden.

Why should we care?
Bunq, which announced a plan to lend $117 million (€100 million), is one of the first digital challenger banks to enter the mortgage market. An 8-year-old company which operates in 30 countries, Bunq is self-funded by founder Ali Niknam. It offers subscription-based plans which include personal finance and foriegn exchange offerings. Bunq won’t be offering the mortgages directly to consumers; it will use a third-party broker that will access Bunq’s capital. Niknam says the company hasn’t decided on whether to offer mortgages directly to customers in the future. Bunq’s entry into the mortgage market opens the question of whether other challengers will follow suit. For now, mortgages aren’t seen as terribly lucrative for them, Richard Davies, an outgoing Revolut executive, told Sifted. “Having interest rates at a historical low also wouldn’t help the cause,” he said.