Metro Bank is to purchase £384 million in loans from peer-to-peer investors through the RateSetter platform.
All RateSettter peer-to-peer investors are to have their money repaid after the platform with Metro Bank is purchasing its remaining loan portfolio.
The bank has been funding all new consumer lending on the platform following its acquisition of RateSetter last year, with the remaining peer to peer investor loan portfolio left to run-off.
The value of the portfolio is currently £384 million but Metro Bank said it was likely to be lower once the transaction completes.
Commenting on the acquisition, Daniel Frumkin, Metro Bank’s Chief Executive Officer 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. 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.”