Non-major lender Auswide Bank has announced it is increasing its equity stake in peer-to-peer lender MoneyPlace Holdings. The bank will have a controlling interest of at least 51%, from the 19.3% stake it acquired in January 2016.
The controlling interest could rise further to 75%, depending on the final take up of other MoneyPlace shareholders in a capital raising initiative being undertaken by the P2P lender.
Auswide also committed funding to MoneyPlace when it acquired the initial 19.3% stake in January last year. Auswide managing Director Martin Barrett said the bank has been impressed with the platform, skills, capability and performance of MoneyPlace.
“Our funding has now exceeded $8 million over the last 7 months and momentum continues to build. Loan quality has also been performing above expectations and we remain optimistic regarding future growth opportunities for the MoneyPlace and Auswide Bank partnership,” he said.
Auswide is seeking to grow its consumer lending book to provide an increased and diversified revenue stream.
“Now is the right time to substantially increase our equity stake in MoneyPlace as they pursue the next stage of growth with further technology advancements, strong risk management and growing business relationships,” Barrett said.
Barett added that further investment in MoneyPlace demonstrates the bank’s growth ambitions and supports stronger returns for shareholders in the medium term.
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