Germany-based banking platform SolarisBank announced on Tuesday it has formed a strategic partnership with digital marketplace for European loans CrossLend for fully automated loan securitization.

According to SolarisBank, the partnership will allow the bank group to establish a so-called ‘Balance Sheet Light’ model, with loans being generated in a way that makes it possible to pass them on to investors directly or with a delay and without putting a long-term strain on the bank’s balance sheet. SolarisBank also reported that with this offer its banking license is expanding its platform strategy consistently to the credit sector.

The automated securitization provided by CrossLend combined with a central, high-quality data warehouse maximise the transparency of the resulting securities and keep transaction costs low, making loan securitization possible for securities worth between 20 and 100 million euros instead of the usual 500 million euros.”

Speaking about the partnership, Roland Folz, CEO of SolarisBank, stated that with CrossLend the banking group is creating a flexible, prompt, and transparent loan securitization.

We are linking both platforms in a way that makes the process fully digital and automated. Individual loans can be bundled and then passed on directly to investors as a securities portfolio starting at approximately 20 million euros.”

SolarisBank also reported it will use the CrossLend platform to purchase and securitize loan portfolios, which will allow SolarisBank to expand its balance sheet to reach an optimal return on equity value. Oliver Schimek, CEO of CrossLend, this added:

Together with solarisBank, we can now offer completely digital securitization as a service. We believe that the Balance Sheet Light model is setting the trend for the future”