Auswide Bank commits to lend $60m over five years and takes 20 per cent stake in platform.
Melbourne-based peer-to-peer platform MoneyPlace announced today an agreement with Auswide Bank. The small Queensland bank is reportedly committing to offer $60 million in personal loans over five years through MoneyPlace, along with a 20 per cent stake in the platform.
MoneyPlace was founded in 2014, but it only began lending in early December after an 18-month application process with the Australian Securities and Investments Commission in order to get its licence. The platform was only the second P2P lender in Australia to get that retail licence - allowing mum and dad investors to lend - along with RateSetter Australia. Borrowers may apply for loans up to $35,000 for terms of three to five years, receive funds in 1-2 business days and there are no hidden fees or charges for early repayments. Interest rates start from 8.9% per annum and users may repay their loans starting from $310 per month.
MoneyPlace founder Stuart Stoyan told AltFi:
"Retail investors will be able to get their funds deployed more quickly because we have an institutional investor alongside.”
Auswide Bank primarily focuses on home loans, but this deal suggests that the lender also has ambitions to expand in consumer finance. Apparently, it had been in talks with MoneyPlace for about a year. The bank believes it will get fast access to the large and young credit market outside Queensland via MoneyPlace.
Martin Barrett, managing director of Auswide Bank, added:
“We see it as being a valid platform to extend our consumer finance ambitions […] when we look at online I think what the P2P guys have to offer is something that is more advanced and capable than what we would be able to put into the marketplace in the near future."
MoneyPlace is not the only P2P platform targeted by established banking players. Westpac, another Australian bank, is reportedly piloting a partnership with Prospa, an Australian online business lender. Similarly, G&C Mutual Bank is making personal loans via SocietyOne, the first P2P lender to start up in Australia.