Queensland's Auswide Bank is to commit $60 million in funding to Australian peer-to-peer lender MoneyPlace in return for a 20% stake in the business.
MoneyPlace launched in October after receiving its retail and wholesale Australian Financial Services licence and provides loans of $5000 to $35,000 through its P2P platform.
The long term relationship, the first of its kind in Australia, includes a 5 year deal to fund up to $60 million to assist MoneyPlace to grow its consumer lending.
MoneyPlace CEO Stuart Stoyan says 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,” he says.
Auswide Bank’s managing director, Martin Barrett says the bank is keen to take a position in the emerging P2P space to assist its growth in the consumer finance market.
“We believe we are the first bank in Australia to take this dual equity and funding position," he says. "Technology is changing the market and we, through the right innovative partners, are keen to take advantage of the opportunities for growth it presents.”