Non-major lender Auswide Bank has entered into a equity and funding deal with peer-to-peer lender MoneyPlace.
The deal will see Auswide Bank take a 20% equity stake in MoneyPlace as well as five-year funding agreement whereby Auswide will fund up to $60 million to assist MoneyPlace to grow its consumer lending.
MoneyPlace CEO Stuart Stoyan said the relationship is a critical milestone for P2P lending globally and demonstrates how banks can work with P2P lenders to provide fairer, better rates for all customers.
“This is an exciting development for both companies and is an example of the type of collaboration we believe enables traditional lenders to tap into the innovative business models that alternative lenders like MoneyPlace bring to the market,” Stoyan said.
“In Auswide Bank we have a partner who is keen to take advantage of our low cost distribution channel to grow their consumer lending business and support their expansion into Melbourne and Sydney.”
Auswide Bank managing director, Martin Barrett said the deal is crucial in helping the non-major grow and diversify its services nationally.
“We’ve been impressed with the platform, skills and capability of MoneyPlace and are excited by the opportunities that will flow from this relationship. By taking a 20% equity stake, as well as using the MoneyPlace platform to invest funds for consumer finance, both organisations benefit and most importantly those customers requiring consumer finance benefit.
“We believe we are the first bank in Australia to take this dual equity and funding position. This is a wonderful opportunity for both organisations to grow and be at the forefront of the P2P opportunity in Australia.
“It represents the ability for us to accelerate our consumer finance ambitions nationally. Technology is changing the market and we, through the right innovative partners, are keen to take advantage of the opportunities for growth it presents.”