MoneyPlace, Australia’s second fully licensed P2P lender and Auswide Bank have entered into a significant strategic relationship, the first of its kind in Australia. According to the official press release, the 5-year deal commits Auswide Bank to invest $60 million in MoneyPlace to grow its consumer lending business. For the bank, it is an opportunity to diversify its financing activities nationally.
For the $60 million investment, Auswide Bank is taking a 20% equity stake in MoneyPlace.
The announcement ensures that MoneyPlace has the financial capacity to support the growing demand of Australians looking for a better deal than what is on offer from traditional lenders.
Stuart Stoyan, MoneyPlace CEO, commented that the partnership 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,” he added.
Stoyan also shared that MoneyPlace has a partner in Auswide Bank who is keen to take advantage of the lender's low-cost distribution channel to grow their consumer lending business and support their expansion into Melbourne and Sydney.
Martin Barrett, Auswide Bank’s Managing Director, said the bank is keen to enter the emerging P2P space to assist its growth in the consumer finance market and to continue to improve its competitive positioning against the big 4 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. 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.”
Auswide Bank is the first in Australia to take this dual equity and funding position. As Barrett commented, “This is a wonderful opportunity for both organizations 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.”
Founded in 2013 by Stuart Stoyan, who is a former National Australia Bank executive, MoneyPlace is a full-service P2P lender. It offers loans to borrowers from $5000 to $35,000 with rates as low as 8.9%, using risk-based pricing to offer some of the fairest rates on the market. MoneyPlace is also open to retail and wholesale investors, providing returns well above standard bank term deposits.
About Auswide Bank Ltd
Auswide Bank is helping Australians achieve home ownership, create wealth, access banking & financial services that make their life easier and help them to protect their assets and loved ones from financial loss or hardship. The bank provides an extensive range of personal and business banking products and services issued directly or in partnership with leading service providers via their branches, strategic relationships and online & digital channels.