Metro Bank enters the world of digital car loans

Metro Bank is entering the vehicle financing market in the UK with the launch of a digital car loan product.

Housed under the RateSetter brand, it is offering purchase loans for second-hand cars and the product is currently being piloted by CarFinance 247 and Motion Finance.

Metro Bank said it expects more partnerships to launch “in the coming weeks”.

“By providing an efficient and market-leading end-to-end journey through RateSetter technology for our broker partners, we’re ensuring quick, reliable and data-led decisions for their customers,” Metro Bank head of motor Lloyd Collett said.

“I’m excited to see how this develops as we continue to expand, add more partners throughout the UK, and provide an increasing number of borrowers with a clear and transparent product to finance their car.”

Peer-to-peer lending platform RateSetter, which was acquired by Metro Bank in 2020, now has more than 800,000 customers and has lent more than $4bn.

According to Metro Bank,RateSetter’s technology will provide every customer with a bespoke loan quote through an “automated and real-time” decision-making process.

With a paperless application process, eligible customers will apparently be able to “drive their car off the forecourt” the very same day, making it an efficient process for both borrowers and brokers.

“We receive over 100,000 applications each month, and with this exciting new lender on our panel, we will be able to help even more people secure the finance deal that’s right for them,” CarFinance 247 chief operating officer Louis Rix said.

“We look forward to working closely with the team at Metro Bank and supporting their exceptional customer service team to deliver a quick turnaround and highly efficient payout process to every eligible applicant.”