Prosper has announced a new partnership with Radius Bank, which will now offer its clients personal loans via the Prosper platform.
Radius bank describes itself as a community bank serving consumers, small/middle sized companies and government entities as its core clients. The bank provides branch access in New York and Massachusetts, but serves customers across the US. As such, providing an innovative online presence is vitally important to the company and providing loans through Prosper’s online marketplace is now part of this. Mike Butler – President and CEO of Radius Bank – commented:
"We are challenging the traditional banking model by looking for new, innovative ways to bring exceptional products and services to market,"
"Our partnership with Prosper Marketplace allows us to continue to fulfill that commitment, while also aligning us with a company that shares a digital, forward-looking approach to personal banking."
In the coming weeks customers will be able to apply for loans of between $2,000 and $35,000 from Radius. These loans will be provided by Prosper. Prosper’s lending volumes are likely to see an uptick in growth. The San Francisco based company has to date facilitated over $4 billion worth of loans after a strong Q2 earlier this year.
Itzik Cohen – Chief Business Officer at Prosper – praised Radius for its approach:
"Radius is recognized as a bank providing a next-generation banking experience, just as Prosper Marketplace is using technology to offer the platform's members a new and better way to borrow and invest money,"
"We're looking forward to working with Radius Bank to bring clients access to a personal loan product that offers competitive rates and transparent, easy-to-understand terms."
Prosper has shown over recent months an open minded approach to bank partnerships – joining up with some of the largest players in finance, and some smaller ones too. Earlier this year, Prosper secured $165M in equity funding – in a round led by Credit Suisse and, in July, CitiGroup decided to sell $377M worth of loans through the marketplace. In February, Prosper signed a deal with the Western Independent Bankers Group (WIB), giving the 160 strong consortium increased access to Prosper’s marketplace. What all of these moves demonstrate is a commitment by Prosper to expand its distribution channels via partnerships with traditional financial services providers.
Alternative finance is often pitted in opposition to its traditional counterpart. But Prosper’s partnerships, not to mention the platform’s success, aptly demonstrates the synergies that exist between the two groups.