Digital banking and real estate are great bedmates. Today Berlin real estate fintech startup Getmomo announces a new partnership with Vereinigte Volksbank Raiffeisenbank eG (VVBR) to offer tenant underwriting, expanding its digital banking services.
Getmomo is a vertical payment platform for real estate, automating payment flows and hedging against payment risks. And they've set their sights on making the lives of renters better.
Large cash deposits slay renters upon taking a tenancy when they're grappling with moving costs and rising utility expenses.
More than one-third of Germans say they cannot afford an extra payment of more than €1.000, so the expected heating cost arrears of up to €2.000 on average are a significant financial risk for millions of tenants.
The platform offers an alternative to a cash deposit in cooperation with VVRB.
Tenants do not have to pay a cash deposit when moving in, and existing tenants can simply swap the cash deposit they have already paid, and settle their extra payment. VVRB supports the further development of Getmomo's business by underwriting the guarantees.
According to Ralf Magerkurth, CEO at VVRB, almost €30 billion is tied up in traditional cash deposits in Germany alone, with more than €70 billion in Europe.
"We see this traditional industry at a turning point. The digital bank guarantee has the chance to become a new standard in the market, helping both sides of the lease.
Given the current price increases for heating and electricity, we predict a high demand from landlords and tenants to switch to the Getmomo guarantee solution to cover the expected additional payments."
This also brings them into the world of digitisation. Currently, many landlords run on legacy Property Management Systems that lack, due to missing connectivity, real-time transparency on the portfolio performance. Repetitive, manual work consumes at least 30% of a property manager's time.
€3.5 million seed funding
Getmomo also today lifted the lid on its seed funding last June, revealing it secured €3.5 million. Element Ventures led the investment in collaboration with various investors, including Atlantic Labs, Visionaries Club, and Global Founders Capital.
This year, Getmomo plans to expand with an offering to secure payments and access future cash flows.
Lead image: Handiwork NYC.