By John Reynolds on 1st October 2019
Warehouse funding facility is part of NAB's pledge to provide $2bn of debt funding to fintechs and other tech startups.
Australia's biggest business bank is furnishing a $57m (£46m) warehouse funding facility to personal lender Symple Loans, as part of its $2bn (£1.63bn) commitment to fund technology startups.
National Australia Bank (NAB) made a pledge in June to provide $2bn (£1.63bn) of debt funding to fintechs and other tech startups to challenge the traditional banks.
Symple Loans uses digital technology to offer Australian customers lower interest rate personal loans.
The $57m (£46m) facility provided to Symple Loans could rise to $250m (£203m) over time.
Symple Loans, based in Australia, has lent $20m (£16m) since its launch in December and has goal of a $2bn (£1.63bn) personal loan book, according to Financial Review.
The warehouse facility will allow Symple Loans to provide cheaper funding to offer at competitive rates.
Symple Loans opened its loan book at the start of this year, believing that Australian consumers were being hit by "unneccesarily high interest rates".
NAB Head of Emerging Technology Clients Steve Smith said: "We're committed to supporting these types of ventures, both in fintech as well as across the technology sector more widely, as they establish themselves, grow and evolve into market-leading businesses over time.
"Symple has a compelling product and customer value proposition, as well as a deeply experienced management team, so the opportunity to work with them on this deal is exciting.
"We see this as the start of a long-term relationship, this is underpinned by the great depth of capability NAB's Securitiatioin team has to offer in the fintech sector."
Symple Loans CEO Bob Belan said the deal would mean it could "immediately" boost its loan volumes helping it advance "the company's mission of
lowering the cost of unsecured lending and helping to improve the financial health of Australian households".
"Our new securitised warehouse program supports our growth and positions the company to access additional capital when needed via private, wholesale and public Asset-Backed Security markets as we building towards our $2 billion lands under management target," Belan added.