And RateSetter's acquisition by Metro Bank is a particular blow given it was one of the few platforms almost solely funded by personal investors. Metro Bank will use RateSetter's lending infrastructure to grow its own lending. RateSetter is an established business with a strong technology platform and a talented team who have deep experience in the consumer unsecured lending market. The rate you’re offered will be based on your circumstances and the details of your loan. And why has RateSetter chosen Metro Bank? The announcement also hinted that withdrawals may take longer due to the changing nature of the investment portfolio. Metro Bank is to buy distressed P2P lender RateSetter for a bargain basement initial price of £2.5 million. The acquisition presents an attractive opportunity for Metro Bank to improve its lending yield, with RateSetter having achieved an average total gross yield of 8 percent for the financial year ending 31 March 2020, and is expected to be net interest margin enhancing in the first full financial year of ownership.Metro Bank will operate RateSetter as an independent platform and originate loans under both the RateSetter and Metro Bank brands. Any fees will also depend on your credit profile. Metro Bank has confirmed that it is in exclusive talks to buy the UK's biggest P2P lender RateSetter. RateSetter's originating and underwriting capability will enable the bank to rapidly accelerate this ambition via an existing, scalable platform. As part of its strategy to enhance returns, Metro Bank has previously signalled its ambition to grow unsecured lending. Metro Bank PLC. Going forward, all new unsecured personal loans originated by RateSetter will be funded by Metro Bank, in line with Metro Bank’s stated strategy to grow in this area. The transaction will be funded from existing cash resources, whilst the final fair value and goodwill elements will be determined as part of the Company's year-end accounting process. Metro Bank had already shown its interest when it comes to expanding within the unsecured lending sector, all in a bid to enhance its prospective returns. RateSetter will continue to manage the existing RateSetter loan portfolio and Provision Fund on behalf of its existing peer-to-peer investors, with Metro Bank assuming no credit risk for these existing loans. In April, RateSetter said it wanted to act as the consolidator in a deal, rather than be the acquired Metro Bank has agreed to buy one of Britain’s biggest peer-to-peer lending platforms for an initial payment of £2.5 million as the troubled bank seeks to revive its fortunes.The purchase price for Metro Bank today announces that it has agreed to acquire Ratesetter* (Retail Money Market LTD) for initial consideration of 2.5 million GBP, with additional consideration of up to 0.5 GBP million payable 12 months after completion subject to the satisfaction of certain criteria and further consideration of up to 9 million GBP payable on the third anniversary of the completion of the transaction, subject to the … “This means the investor loan portfolio will decrease in size over time but our focus on investment performance will remain throughout.”. Metro Bank today announced that all necessary regulatory and shareholder approvals have now been received and the acquisition has completed. Rhydian Lewis will join Metro Bank's Executive Committee and report directly to Metro Bank's CEO, Daniel Frumkin.Following completion, Metro Bank will use its deposit base to fund all new unsecured personal loans originated via the RateSetter platform on Metro Bank's balance sheet. The acquisition is anticipated to reduce the Company's CET1 ratio by circa 0.3% at 30 June 2020 on a pro forma basis. Apart from the remaining essential lending, the investor portfolio will go into run-off. “Investment releases are expected to remain constrained for a period and we ask anyone choosing to continue to invest or reinvest to only do so if they do not need early access to their funds for the time being.”. Since inception, the business has originated £4 billion of lending. It was confirmed on 3 August that Metro Bank was acquiring RateSetter in a deal worth up to £12m – far below the … “Please note that with all new unsecured personal lending being funded by Metro Bank, the weighting of the investor loan portfolio towards secured lending will increase,” RateSetter said. The move effectively closes RateSetter, once part of the ‘big three’ platforms, to new P2P lending. Your eligible deposits with Metro Bank PLC are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. Metro Bank has completed its acquisition of peer-to-peer lender RateSetter. “RateSetter continues to manage the loan portfolio and the provision fund as before, and the provision fund continues to apply to your investment with no liability for Metro Bank,” a blog post from the lender said. Metro Bank’s acquisition of RateSetter is part of its strategy to grow unsecured lending and in turn increase profits. Rhydian Lewis, RateSetter co-founder and chief executive, will join Metro Bank’s executive committee on completion of the deal. Metro Bank will snap up peer-to-peer lender Ratesetter after agreeing a £12m sale it hopes will push it into more profitable banking avenues. Rhydian Lewis, Chief Executive Officer at RateSetter said: "I am excited at the prospects of this combination. RateSetter’s personal loan rate starts at 3.9% APR. As a peer-to-peer platform, RateSetter connects investors and borrowers and therefore does not hold deposits or loans on its balance sheet. The board of directors of RateSetter unanimously recommends the transaction and that shareholders of RateSetter accede to the relevant transaction documents. Both RateSetter and Metro Bank are innovative businesses with a shared focus on delivering something better for customers, making this a natural pairing. Metro Bank is in advanced talks to acquire RateSetter, one of the UK’s largest peer-to-peer (P2P) lenders, Sky News reports. Any deposits you hold above the limit are unlikely to be covered. Metro Bank will acquire UK lending firm RateSetter for an initial consideration of £2.5 million to boost its unsecured lending ambitions. “Access to your online RateSetter account and monthly statements continues in the normal way and our investor services team remains available to help with any questions you may have. RateSetter continues to manage its existing loan portfolio, funded by peer-to-peer investment, originated before the acquisition, but new lending will no longer use P2P … Metro Bank bought RateSetter, a peer-to-peer platform, in August. Company number: 6419578. In its financial year ending 31 March 2019, the company reported revenue of £33 million, a pre-tax loss of £8 million and gross assets of £42 million. “RateSetter investors will continue to fund the ongoing essential secured residential property development, dealer finance, family finance and giffgaff lending. The platform revealed that it will close its five-year market from 14 October and will provide an update on how users can continue to invest in other markets. The move effectively closes RateSetter, once part of the ‘big three’ platforms, to new P2P lending. Registered in England and Wales. Metro Bank, the high street lender which has been beset by problems during a troubled 12-month period, is in advanced talks to buy Ratesetter, one of Britain's biggest peer-to-peer lenders. We are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Metro Bank, Personal loans, Ratesetter Metro Bank has completed its acquisition of peer-to-peer lender RateSetter. "Metrobank" is the registered trademark of Metro Bank PLC. RateSetter is a British peer-to-peer lending company based in London, founded in 2009 and trading in the United Kingdom and (from 2014) through a locally-owned and run business in Australia. The rate you’re offered will be based on your circumstances and the details of your loan. Sources said Metro would use the Ratesetter brand to make loans through price comparator websites and the Metro Bank name for loans taken out in its … The deal was confirmed yesterday evening (14 September) and will see the bank solely fund RateSetter’s unsecured personal loans. Metro Bank is admired for its fresh approach to banking and I am looking forward to helping the bank expand its offering and meet more customer needs.". On 3 August we announced that Metro Bank and RateSetter had agreed for Metro Bank to acquire RateSetter, with the acquisition being subject to regulatory approval. Metro Bank logo at one of their branches. Metro Bank has bought peer-to-peer lender RateSetter in a move that pushes challenger bank further into unsecured consumer lending.The deal, valued at £2.5m ($3.3m), was announced on Monday and follows a period of talks first confirmed in mid-June. Metro Bank will operate RateSetter as an independent platform and originate loans under both the RateSetter and Metro Bank brands. For further information visit www.fscs.org.uk. The business primarily originates unsecured personal loans, and also arranges secured auto dealer financing and property financing. Read more: Why is Metro Bank eyeing RateSetter? Metro Bank PLC (LON:MTRO) has finalized the acquisition of Retail Money Market LTD (“RateSetter”). Metro Bank’s share price had plunged nearly six percent in early trading. Delivers strategic ambition to enhance unsecured lending capability, Metro Bank PLC ("Metro Bank" or "the Company") today announces that it has agreed to acquire Retail Money Market LTD ("RateSetter") for initial consideration of £2.5 million, with additional consideration of up to £0.5 million payable 12 months after completion subject to the satisfaction of certain criteria and further consideration of up to £9 million payable on the third anniversary of the completion of the transaction, subject to the satisfaction of certain key performance criteria. Registered office: One Southampton Row, London, WC1B 5HA. It is now hovering 5.6 percent below its opening price. Metro Bank plans to significantly grow RateSetter’s lending through the RateSetter platform, using the lending and credit management capability RateSetter has built over the last decade. The acquisition brings a talented team including co-founders Rhydian Lewis and Peter Behrens and CFO Harry Russell. RateSetter and Metro Bank share a focus on delivering something better for the customer and the strategic logic of pairing Metro Bank's strong deposit base with our lending capability is compelling. Metro Bank weighs up risks of Ratesetter deal after disastrous year The scandal-hit bank wants to buy the peer-to-peer lender, but is the timing – and the price – right? “Apart from the remaining essential lending, the investor portfolio will go into run-off. This acquisition therefore accelerates our plans, helps us to better meet the needs of our customers and further strengthens our position as the UK's best community bank." Following completion, Metro will use its deposit base to fund all new unsecured personal loans originated via the RateSetter platform on Metro Bank’s balance sheet. The price Metro Bank would pay for RateSetter is unclear and there is no guarantee that the talks between the two firms would lead to a transaction, Sky News said. The acquisition does not include RateSetter Australia, which is being retained by shareholders. Metro Bank first said that it is in talks over the acquisition of RateSetter in June this year. solely fund RateSetter’s unsecured personal loans. RateSetter's existing lenders will see their existing loans paid off while borrowers meet their repayments, as usual. © Peer2Peer Finance News 2020 Along with that sum the bank says there will be an additional consideration of up to £500,000 payable 12 months after completion and further consideration of up to £9 million payable on the third anniversary of the completion of the transaction. • Additional design by, The UK's first peer-to-peer finance magazine for investors and the industry, FCA lumps P2P lending in with higher risk products again, 4th Way gives its views on Zopa and Funding Circle returns, UK operations help Funding Circle push for profit in…, Investors ready to put more money into P2P lending, CrowdProperty unveils board changes and hunt for CFO, RateSetter outlines benefits of debt consolidation loans, Metro Bank completes RateSetter acquisition. Metro Bank PLC is an independent UK Bank - it is not affiliated with any other bank or organisation (including the METRO newspaper or its publishers) anywhere in the world. Metro Bank is in talks to buy peer-to-peer lender RateSetter, as new chief executive Dan Frumkin looks to boost the bank’s turnround by strengthening its lending capabilities. It said in a blog post that there are no changes for existing investors yet. The deal was first announced in August and revealed that Rhydian Lewis (pictured), co-founder and chief executive of RateSetter, would join Metro Bank’s executive committee. Read more: What’s happening at RateSetter? The UK business was acquired by Metro Bank in September 2020.. A branch of Metro Bank in London. Metro Bank will operate RateSetter as an independent entity and make loans under both its and Metro Bank brands. Photo: Dinendra Haria/SOPA Images/LightRocket via Getty Images. Following completion, Metro Bank will use its deposit base to fund all new unsecured personal loans originated via the RateSetter platform on Metro Bank's balance sheet. Today we … The deal is subject to approval … The acquisition is conditional upon approval from the Financial Conduct Authority and shareholders holding at least 60 percent of RateSetter's shares acceding to the relevant transaction documents and is expected to close by the fourth quarter this year. “The ability to enhance our offer of unsecured lending to our customers is an important strategic ambition as we continue to evolve the bank and increase our returns,” said Daniel Frumkin, chief executive at Metro Bank. … RateSetter and Metro Bank have done a deal: RateSetter has been sold to Metro. Metro Bank, Personal loans, Ratesetter. Metro Bank could pay between £25m and £50m to acquire RateSetter, according to new reports, as analysts predict that the platform could be bought at a “knockdown price.” Earlier today (29 June), The Telegraph quoted a Metro Bank source who said that the bank was concerned it would look bad if RateSetter’s loans defaulted – a growing risk given the fragile state of the pandemic-hit economy. RateSetter’s low sale price to Metro Bank has led analysts to query whether the peer-to-peer lender was under pressure to do a deal. Buto new lending will occur through the platform. Industry News, News, Top 3 RateSetter's holding in RateSetter Australia, which had a book value at 30 June 2020 of £13.7 million, will be distributed on a pro-rata basis to the existing RateSetter shareholders by means of a reduction in capital at or around completion of Metro Bank's acquisition of RateSetter. Marc Shoffman Metro Bank has agreed to acquire RateSetter for initial consideration of £2.5 million, with £500,000 payable 12 months after completion subject to the satisfaction of certain criteria and a further £9 million payable on the third anniversary of the transaction. Abundance Investment working on “new opportunities”, LendInvest bond value lost £5.8m during pandemic, Everything we know about the CBILS successor scheme (so far). Shareholders holding 45.7 percent of RateSetter's shares have signed the relevant transaction documents at the date of this announcement. RateSetter investors will continue to fund the ongoing essential secured residential property development, dealer finance, family finance and giffgaff lending. According to an official stock market announcement by Metro Bank, released yesterday (Monday 15 June), the bank is primarily interested in RateSetter’s unsecured consumer lending book, which would aid Metro Bank in its goal to diversify away from mortgage lending. Unsecured personal loan leads that come from RateSetter’s platform will be funded by Metro Bank’s deposit base, but RateSetter remains the lender. RateSetter 14 Sep 2020. Once RateSetter shareholders holding 60 percent of RateSetter's shares have signed or acceded to the relevant transaction documents, it is expected that RateSetter shareholders who have not signed or acceded to the transaction documents will be dragged into the transaction, resulting in Metro Bank acquiring 100 percent of RateSetter's shares at completion.Daniel Frumkin, Chief Executive Officer at Metro Bank said: "The ability to enhance our offer of unsecured lending to our customers is an important strategic ambition as we continue to evolve the Bank and increase our returns. The bank has noted that RateSetter’s originating and underwriting capacity could boost Metro Bank’s lending yield by approximately eight per cent. RateSetter will continue to manage the existing RateSetter loan portfolio and Provision Fund on behalf of its existing peer-to-peer investors, with Metro Bank assuming no credit risk for these existing loans. The acquisition does not include RateSetter's holding in RateSetter Australia which is being retained by RateSetter shareholders.RateSetter was founded in 2010 and is the UK's most popular peer-to-peer lender with over 750,000 people having invested or borrowed through the platform. The deal was confirmed yesterday evening (14 September) and will see the bank solely fund RateSetter’s unsecured personal loans. RateSetter and Metro Bank: acquisition completes. (Dave Rushen/SOPA Images/LightRocket via Getty Images) Troubled challenger bank Metro has confirmed it is in early talks to acquire peer-to-peer lender RateSetter.Metro Bank said in a statement on Monday it had entered into exclusive deal talks with RateSetter, but said discussions were “at an early stage.” Your credit profile may take longer due to the changing nature of the ‘ big three platforms. Secured auto dealer financing and property financing UK 's biggest P2P lender RateSetter registered of. 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