National Australia Bank partners with fintech lender Plenti
The National Australia Bank (NAB) has announced a strategic partnership with fintech lender Plenti, involving an annual payment of at least AUS$3m (£1.6m) for a period of five years. As part of the agreement, NAB also has the option to acquire up to 15% of Plenti over time, subject to certain milestones.
The collaboration between the two Australian firms aims to launch a co-branded secured car and electric vehicle loan product, with NAB providing the funding and holding the loans on its balance sheet. In addition, select Plenti renewable energy finance solutions will be made available to NAB customers in 2024, in response to the growing demand for eco-friendly products.
NAB’s executive, Paul Riley, expressed enthusiasm about the partnership, stating, We’re excited to launch our first products with Plenti next year, and we look forward to working with Plenti to explore ways to expand the strategic partnership further. He also emphasized the importance of supporting customers’ transition to a low emissions future by embracing electric vehicles and environmentally sustainable products.
Under the terms of the agreement, Plenti will receive an upfront payment for operational set-up, an upfront fee per funded loan (with reductions as the loan book reaches AUS$1bn), and a monthly servicer fee based on the loan book size. The servicer fee decreases as the loan book grows until it reaches AUS$3bn. The partnership has an initial five-year term, with the option to extend for an additional five years.
Plenti, formerly known as RateSetter Australia, sees this collaboration as a significant opportunity for its growth and profitability. Daniel Foggo, Plenti’s founder and chief executive, commented, Together we see an opportunity to better serve new and existing customers with car and renewable energy lending products, and we’re excited about the potential for future expansion of the strategic partnership over time.
Plenti’s rebranding followed its initial establishment as a subsidiary of UK-based peer-to-peer lender RateSetter. The company successfully debuted on the Australian stock exchange in 2020.
The announced partnership between NAB and Plenti reflects the evolving landscape of financial services, as traditional banks seek to collaborate with fintech lenders to offer innovative products and tap into emerging markets. With a focus on car loans and renewable energy finance, the two firms aim to meet the changing needs of customers and contribute to a sustainable future.
