Oct 9 (Reuters) - Fintech firm Younited,

which provides personal loans and credit, announced it secured a

400 million euros ($464.48 million) warehouse financing facility

with U.S. bank Citi, backed by French and Italian consumer

loans.

Warehouse financing is a short-term financing option in

which businesses can use their inventory as collateral.

WHY IT'S IMPORTANT:

Younited's latest financing comes as Europe tries to free up

more capital for lending and boost its underdeveloped

securitisation market in order to spur sluggish economic growth.

Moreover, in recent years, fintech companies and neo-banks,

with their digital technologies, have gained market share from

older, more established players.

KEY QUOTE:

"The signing of this warehouse financing facility complements

Younited's significant retail deposit funding base and provides

significant diversification, while adding balance-sheet

flexibility towards continued regular use of the public ABS

(asset-backed securities) market for refinancing transactions,"

said Xavier Pierart, Deputy CEO of Younited.

($1 = 0.8612 euros)