On the 4th of March, the 1st Belgian SIB ( Social Impact Bond) structured and financed by BNP...
Together: purchase your dream home thanks to your social credibility
Together is a platform that lets people take advantage of their social credibility to purchase their dream home by offering friends and family members an innovative financial investment model that is open to third parties in addition to banks.
Building on the success of the inaugural BNP Paribas International Hackathon in 2015, the event returned for a second edition in 2016. During one week-end, 96 start-up from eight countries shared their vision of the customer experience of tomorrow, with the help of 350 BNP Paribas experts. By the end of the event, nine start-up were awarded for their creativity and commercial vision. Among them was an investment platform called Together that enables young couples’ friends and families to help them buy a home. Learn more from its founder, Federico Quarato.
What inspired you to create Together?
Young couples looking to buy property frequently have trouble convincing their banks to grant them a mortgage because they lack the necessary collateral. Together is an online platform that enables young couples to call on their network of family, friends and coworkers to vouch for their financial credibility. How? By investing in an insurance product that serves as collateral for the lending bank. In this way, Together acts as a “crowd guaranteeing” site.
How exactly does it work?
A couple can request a mortgage directly through the platform.
To do so, they simply describe their purchasing plans, including the house they wish to buy, their risk profile and their financial needs (up to 100% of the house value).
Third-party investors, including bank customers and prospects, are also welcome to participate in the investment opportunity.
Do the funds raised cover the mortgage and down payment?
Yes, depending on the amount requested. Once the total amount is raised, the investors transfer their contributions into an insurance contract that lasts for the duration of the loan. Next, the company managing the contract places the contributions into a fund consisting of diversified financial products whose risk/return profile corresponds to the mortgage type. With this solid collateral on hand, the bank can provide the buyers with the mortgage they need!
What stage are you at in designing the platform?
We are currently working with BNP Paribas and BNP Paribas Cardif. A launch is forecasted mid-2017 in Italy.
What does Together have to offer a bank like BNP Paribas?
The solution enables banks to get to know their customers better, particularly ‘millennials’, meaning young adults who are less likely to visit their local branch office. Together helps banks issue more mortgages, and adds a new dimension to their social responsibility policy, since third parties can contribute and thus help young people access the housing market.
To conclude, tell us about your experience at the BNP Paribas International Hackathon.
We first took part in the BNP Paribas International Hackathon in Rome as a teambuilding activity for our Dynamitick brand, a company specialized in dynamic ticket pricing for events. The Hackathon was a chance for us to stir things up and try something different. Presenting our solution to the banking experts at the BNP Paribas International Hackathon strengthened our conviction and the legitimacy of our product, which is helping change the way young people access credit. We needed the support of a global leader in banking and insurance, and we got it!
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