Until Saturday night you can swim in Berlin in the money, in other words: in over 2 billion euro-like banknotes. You are in a pool in the Mall of Berlin. What sounds like fun has a serious background.
Sensitize consumers to price differences
Alexander Artopé, co-founder and CEO of smava
“Who lends money, has no money to give away. That’s why we want to make consumers aware of the big price differences in credit. Because they are difficult to identify for borrowers due to the non-transparent market. This works best when you experience it yourself. That’s why we show the public how much money is involved and let them feel it, “explains Alexander Artopé. “To put it bluntly, it’s about making consumers aware of how to save on credit. Not to give the impression that you can swim in the money by borrowing. “
Despite low interest rates: consumers pay over 2 billion euros too much for loans every year
Even in the low-interest phase, interest rates on installment loans differ significantly: on average, according to the Bundesbank, consumers pay an average annual percentage rate of return of 5.7 percent in the current year. According to information from smava, anyone who completes their loan on the Internet pays an average of 1.9 percentage points less interest (3.8%). The interest rate differences within the rating classes are even greater. With a loan amount of 10,000 euros and a maturity of 48 months, for example, even with the best credit rating, there are 7.3 percentage points difference. The interest margin in this case is from 0.69 to 7.99 percent. This is the result of data from FMH Finanzberatung and the credit portal smava.
If all borrowers had completed their installment loan on the internet in 2017, they would have saved 2.2 billion. This is shown by data from the Bundesbank, Schufa and the credit portal smava. In the first quarter of 2018 alone, it would have been more than 600 million euros. A recent survey among banks suggests that the amount could rise to 2.4 billion by the end of 2018.
Make the credit market more transparent and fairer
“The credit market is not clear to consumers, unlike banks,” says Artopé. As a result, consumers have a disadvantage. “With smava, we make the consumer market more transparent and fairer. They are able to recognize the price differences and save a lot of money, “says Artopé.