o. Last year, while lending volumes in Lithuania shrank by about 14 percent, PayRay significantly increased its business loan portfolio;
o. In the nine months after the first quarantine, the neobank’s credit portfolio, which includes corporate loans and factoring, grew by 156 percent;
o. Renato La Fianza, CEO of PayRay, notes that in the context of a pandemic and in the face of high uncertainty, affordable and flexible financing solutions have been vital for businesses. Upon finding them, the neobank fulfilled its promise to customers and thus ensured positive results.
Last year, the neobank PayRay grew its business loan portfolio to EUR 15.39 million by expanding the range of services and the geography of its operations. The credit portfolio of the bank, which offers working capital and investment financing solutions to businesses, has already exceeded EUR 52 million in the first quarter of this year. Among the development plans for this year, the launch of a leasing service, among other things, is planned.
Over the past year, PayRay's business loan portfolio in Lithuania has increased 5 times – from EUR 3.1 million to EUR 15.39 million. The retail customer deposit portfolio reached EUR 6.09 million, which the neobank started collecting in the last month of 2020.
In addition, PayRay funded accounts for EUR 151 million while the factoring portfolio amounted to EUR 22.13 million at the end of the year. For comparison: At the end of 2019, the size of the factoring portfolio was EUR 32.7 million. In 2020, the company financed more than 59.3 thousand accounts, the average amount of one account being EUR 2,761. Accounts were funded with a 49-day average payment term.
"We consider last year to be productive and successful – we started the bank's activities, further strengthened the team and made maximum efforts to respond to the needs of business customers as best as possible. The year was full of challenges for Lithuanian companies – a global recession was recorded, which led to a 14 percent contraction in lending. By developing partnerships with INVEGA and the Agricultural Credit Guarantee Fund, thus helping businesses operate in different sectors to secure the necessary financing and manage the consequences of the Covid-19 pandemic, we have also ensured the growth of the neobank itself. After the first quarantine, our credit portfolio shrank to EUR 20.43 million, and within the nine months until early March, it grew to EUR 52.29 million. Therefore, we achieved a result that is contrary to market trends, and we have once again shown our customers that we are a reliable financial partner,” says Renato La Fianza, CEO of PayRay.
As Fianza notes, the factoring result this year was influenced by several factors – the stagnant sales of businesses and the volume of state support during the quarantine period reduced the need for turnover financing. He predicts that a large number of businesses have already adapted to the changed operating conditions and will maintain stable sales volumes this year. In addition, if the pandemic is controlled, a moderate growth of the country's economy is expected, leading to the growth of the factoring market, which can reach about 5 percent.
This year, the neobank will continue to focus on working capital and long-term financing solutions for businesses. The commencement of investment, real estate financing and leasing services are planned.
At the request of the Bank of Lithuania, the European Central Bank issued a licence to PayRay in December 2019, which allows the provision of banking services in full. The neobank PayRay operates in Lithuania and Latvia, and accepts deposits in Lithuania and Germany through the Raisin.com platform.
PayRay currently employs 40 financial professionals, and that number is expected to reach 50 soon.
PayRay has a share capital of EUR 36.4 million.