Metro Bank has today announced the purchase of £384m in loans to increase its exposure to unsecured personal lending.
The purchase has come from peer-to-peer investors through the RateSetter platform.
Commenting on the acquisition, Daniel Frumkin, Metro Bank’s CEO, said: “The addition of this portfolio to our loan book is a further step towards growing our presence in the unsecured lending market.
“It builds on our acquisition of the RateSetter platform, a well-established business with a strong technology platform that is enabling us to rapidly expand our unsecured lending offering.”
The portfolio is currently owned by many retail investors through RateSetter, which is a wholly owned subsidiary of Metro Bank.
It consists mainly of unsecured customer loans with an average term of two years remaining.
Frumkin added: “We continue to deliver against Metro Bank’s strategic priority of optimising our balance sheet and asset mix, whilst positioning ourselves to better serve customer needs as the UK’s best community bank.”