Lendico launched in Germany in 2013, connecting individual lenders with borrowers for personal and small business loans. P2P lending was hot globally, and Lendico aimed to bring the model to the regulated German market. The company raised significant funding and processed millions in loan volume in its early years.
Company Data
- Founded: 2013 — Germany
- Failed: Pivoted to B2B, shifted away from P2P
German banking regulation is among the strictest globally. P2P platforms faced increasing regulatory requirements that made the model economically unviable for consumer loans. German banks, with their trusted brands and low-cost deposit bases, could offer better rates. Lendico effectively abandoned the P2P model and pivoted to B2B lending technology, but the original vision died.
Key Lesson
P2P lending works differently in each regulatory environment. Germany's strict consumer protection laws made the model uneconomical. Regulation, not technology, determines fintech viability.