Mount Street to manage FIBR’s legacy loan portfolio
The specialist loan servicer and portfolio manager has grown fast but sees high demand from banks and investors to manage illiquid credit.
FIBR, the European digital bank previously known as Amsterdam Trade Bank (ATB), announced on Tuesday the appointment of Mount Street to manage its €211 million legacy shipping and trade and commodity finance portfolio.
This used to be ATB’s trademark lending specialty.
This transaction is a blueprint for regulated banks or insurance companies seeking to transform
Now, as FIBR completes its digital transformation into a platform bank focused on small and medium-sized enterprises, it sees outsourcing to a third party as a good way to switch off high fixed-cost risk-management and loan-management systems for these old assets.
Oren Bass, chief executive of FIBR, told Euromoney when discussing the transformation last year, that its ambition is to have a €500 million book of SME loans by the end of 2022.
“This is not a startup,” Bass told us, “this is, in effect, a scale-up.”
That’s still a big shift for a small bank.
Stephan Plagemann, chief financial officer of Mount Street Group and head of Mount Street Portfolio Advisers, the division which will manage the old ATB book, stated: “This transaction is a blueprint for regulated banks or insurance companies that are seeking to transform their operations, technology use and cost base, in this case for a legacy business enabling FIBR to fully concentrate on the European SME market.”