Auswide Bank and peer-to-peer lender MoneyPlace have entered into a five-year, $60 million funding and equity relationship
Auswide Bank is taking a 20 per cent equity stake in MoneyPlace and the funding will assist MoneyPlace to grow its consumer lending and for the bank to grow and diversify its financing activities nationally.
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’s managing director, Martin Barrett said the deal will solidify its position in the emerging P2P space and improve its competitive stance against the big four banks.
“We’ve been impressed with the platform, skills and capability of MoneyPlace and are excited by the opportunities that will flow from this relationship,” says Barrett.
“By taking a 20 per cent 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.
MoneyPlace is Australia’s second fully licenced peer-to-peer (P2P) lender and launched in October.