UK-based banking group and lender Metro Bank is reportedly in advanced talks to purchase p2p lending platform Ratesetter. According to Sky News, the duo has entered into exclusive discussions about the acquisition. Founded in 2010, RateSetter states it offers a “simple and accessible way” to put users’ money to work.
“We are making investing better by opening the asset class of loans to everyone, giving ordinary investors access to investment choices that were previously only available to professional investors. We match investors to creditworthy consumer and business borrowers across the UK.The interest rates in our market are not set by a bank or a committee – rather they are decided by our customers.”
Earlier this month, RateSetter stated its loan performance is now consistent with what it had predicted or expected during April 2020 and it claims that it has managed to avoid a significant rise in arrears. As revealed by Peer2Peer Finance News, RateSetter shared in a letter sent to investors:
“We have begun to see a slowing in the rate of consumer borrower breathing space requests and the key determinant of the future expected credit losses will be how many of these borrowers are able to return to paying normally and how many unfortunately will not.”
The lender also confirmed it has “not seen a dramatic rise in actual arrears and so it really is a case of seeing how many of the breathing space borrowers return to normal.”
Sky News did not disclose the amount that Metro Bank has offers to purchase Ratesetter, but one insider who is apparently part of the deal explained that the banking group would be taking it over at “a knockdown valuation.”